Surprise, surprise here we are back in a really strong market. I am cautiously optimistic that we are pulling out of the Global recession and real estate consumers in Toronto certainly seem to agree. Although the weather wasn’t spectacular it has been a great summer for Toronto real estate agents and their clients.
It has gone against conventional economic wisdom, but in August 2009 according to TREB’s August Market Watch Toronto Real Estate Agents reported 8,035 sales, which is up 27 over August 2008. The average price rose 6 to $387,921 compared to the same month in 2008. Toronto real estate came through this past year relatively unscathed. People haven’t earned the standard 8 10 annual increase in property value that they had gotten use to over the past decade, but as of right now Toronto property values have increased by just less than half of a percent over the last 8 months according to TREB reports. The total number of transactions has gone up two percent to 58,421 compared to the first 8 months of 2008.
As a pat on the back for all REALTORS we are being given some credit in helping the economy recover. Along with the transactions in Real Estate our business leads to home buyers’ spending money on lots of other things like mortgage and legal services, moving expenditures, renovations, appliances and furnishings for a home.
I was starting to really enjoy being in a more balanced market, it is great to be able to negotiate one on one with someone. Something that I learned over this past year is that people can truly make money in bad times and good. I had several clients buy over this past year and they are all really happy that they did, they may have taken a slight loss on the sell side, but they made up for it on the discounted purchase, now they are getting to tell their friends about their Trump like instincts. It is always good to hear people excited about real estate.
While TREB reported a modest increase in overall property prices for Toronto some neighbourhoods have been trading significantly above their 2008 prices. One area that comes to mind is Leslieville. I have been hearing the first time buyer ghost stories about homes that sold with 15 offers and other frightening rumours like that. I am always mindful about clients getting involved in multiple offers and overpaying due to the pressure. I believe that you need a very sound strategy heading into those situations and know what your top offer is well before the presentation time. Every house has a certain value where it goes from a great house to a bad investment. I am keen on having clients come back to me several years after they purchase and being able to make some money when they sell.
With these situations becoming realty you also need to be cautious about buying into an area that is bubbling. Your average renovated semi detached home in Leslieville has gone from $350K $450K up to $530K plus in the worst economy the world has seen in 70 years. That is a little concerning to me. Not because I don’t think Leslieville is a good area or a great investment, it just means that I am very cautious about multiple offers and over paying into an area that hasn’t really proven itself yet. Someone was just shot and killed at Dundas and Jones a few weeks ago. If you are willing to spend $650K maybe you can find an area that has proven itself a bit more.
Author Resource:
Evan Sage is a real estate agent Toronto who instills in his clients the confidence to make the right purchase or sale decision. He achieves this by demonstrating a superior knowledge of real estate Toronto and by providing a wealth of free resources on his website http://evansage.com to educate clients.
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