Tuesday, October 6, 2020

September 2020

The real estate market is still sizzling and those homeowners who have decided to sell now continue to do extremely well.

The number of detached 2-storey home sales volume was up 37% (third quarter over third quarter) with 459 sales transactions.  The average detached 2-storey home sale price was up 15% from August '20 to $1948800. WOW!  The ultra luxury sector has contributed greatly to this extraordinary increase.

And of course homes continue to sell quickly, many in just a few days and with multiple bids. 

Mortgage financing remains very attractive and at historical lows with 5 year mortgage money and variable mortgages both available at 1.85%. 

Rental activity was quiet compared to other years with just 31 transactions during the month. The cheapest was $1500/mth for a basement apartment in Falgarwood.  The most expensive was $4900 for an executive home in Glen Abbey.

I think this activity will continue this month and will start to wind down in November.

The housing market is proving to be a good place to park your cash for many investors given the low yielding financial market product alternatives.

Wednesday, September 2, 2020

August 2020

The buying frenzy continued with many homes receiving multiple Offers, and sales volumes are way up year over year.  With of all of these multiple bids the time it takes to sell is approximately 21/2 weeks or, 18 days. That's pretty quick when you factor in that Offers with conditions take about a week to satisfy.

163 detached 2-storey homes sold during the month at an average price of $1693900. That's 67 more sales and a 14% sales price increase.  Essential almost $1.7 million compared to almost $1.5 million ($1480200 in 2019).  This August also saw a big jump from July 2020's $1455700 average price.

The rental market was softer with 30 transactions compared to 71 in August 2019.  Likely some tenants have decided to take the plunge and make a purchase rather than continue to rent.

Definitely the busiest August in my 24 years.  I expect this activity to continue this Fall.

Monday, August 3, 2020

July 2020

The average price of a detached 2-storey home was up just over a point to $1,455,700.  So prices really haven'y moved that much.  Sales volumes moved in concert with sales prices with 11 more  this July than July '2019's 141 2-storey home sales. A slight increase.

A number of homes have attracted multiple bids, selling quickly and above their asking prices.  These properties tend to be priced below $1,300,000.

The majority of homes priced above the $2,000,000 tend to languish on the market before finding a buyer and usually experience a few price reductions before finally selling.  A few though have sold quickly.

The average time it takes to sell a home is 24 days.  The market has been very busy for this time of the year (normally vacation time) with a lot of buyer's out looking.  We will see if this activity continues through August.

Friday, July 3, 2020

2nd Quarter 2020

Sales volumes continue to be a drag on the market.

For those that did have to sell, the market sure has been positive.  Although sales volumes were less than half 2019 at 184 sales compared to 400 for all types of housing, the average sale price for a detached 2-storey home was up 15% during the quarter to $1,559,000.  The time it took to sell a home was about the same as last year at less than 30 days.

In particular, June's activity was very busy with several properties receiving multiple bids.  The average price for a detached 2-storey home increased a whopping 16% to $1,717,000 compared to June 2019's $1,470,000.

Among those sales 30 homes sold over $2,000,000 and a dozen of those sold above $3,000,000.

The cold Spring did keep many buyer's and seller's on the sidelines well into the second quarter and the somewhat improved COVID-19 environment has also contributed to the added excitement in the market with families deciding to go ahead with their plans.  Foreign investment is also helping out these increases.

We will likely see this hot market continue over the first half of July and then soften until the Fall.

Tuesday, June 2, 2020

May 2020

Sales volumes were up 15% over April and there seems to be more activity in the market with more homes and apartments being shown.   This trend is likely to continue.
The average sale price for a detached 2-storey home was $1,505,000.  This is down 6.5% from April 2020 and up 14% from a year ago.

Most properties on average took less than a month to sell.

The number of sales is still is still very low.  Volumes for both resale and rentals were down 60% compared to May 2019.  I expect to see an increase in supply with the warm weather. 

Monday, May 4, 2020

April 2020

The shadow of the Coronavirus has been felt in sales volumes.  The number of properties which sold or rented both fell 70% year over year.

The good news is for sale property selling prices have been holding and are up slightly from March 2020.  The average price for a detached 2-storey home edged up a 1/2 point to $1,604,000 and was up 12% from April 2019.  Seller's needed about 26 days to sell their properties which is pretty quick.

And surprisingly there were a few multiple Offer transactions!

The same hasn't been the case for rental properties.  With many tenants losing work and landlords losing income, the rental rates have been dropping.  And some tenants have been breaking their leases to acquire cheaper alternatives or, move to a better building locations/larger spaces closer to work.  Lease rates are off approximately 10% and may continue to fall further.  As a result of this we may see an influx of existing condo apartment rentals come to market for sale, as investors start to sell.

Sunday, April 5, 2020

March 2020

The hot market which started earlier this year slowed just after the middle of March over concerns of the Coronavirus. And rightly so.  Real Estate has been deemed an essential service in Ontario so business continues albeit under strict showing protocol.

The Bank of Canada reduced the bank rate again however, chartered banks have not passed along any savings to their mortgage consumer clients.  It has also made it difficult for seniors many of whom invest in GICs.  Those investments earn very little at this time, and as higher yeilding GICs mature for rollover many seniors will feel the pinch.

The average price of a detached 2-storey home was a more than reeprctable $1597000 up almost 14% from the first quarter of 2019 and down about 6% from February 2020 extraordinary average. 
$1.6 million is a healthy average.  Volumes were down about 10%.  Again not too bad all things considered.

The rental market had light volumes and will likely stay that way until things get back to normal.  Most tenants contemplating a move will likely stay put unless it is absolutely necessary.  And of course many landlords will experience some defaults in payment due to job losses.

So business as usual for real estate for now unless further direction comes from the Government and Health Canada.