Happy New Year!
This December had almost 20% more detached 2-storey homes sell than one year ago and a dozen of those sold above the $3,000,000 mark. That resulted in a significant jump in the average price to $2,645,486. That's back in the Spring market of 2022 territory. Two years ago in December 2021 the average sale price was approximately 8% or, $200,000 less, and last year the average sale price was below $2 million.
You should know that there are some changes in place as to how we now conduct our business in the Province of Ontario.
Effective December 1, 2023 Ontario Realtors and Brokers are now governed under the Trust in Real Estate Services Act or, TRESA 2002 essentially a name change and replacement of the former REBBA 2002 (The Real Estate Business and Brokers Act which was enacted in 2002). Consumers can find an Information Guide summarizing the changes at www.Reco.on.ca.
One of the big changes is that sellers, during a hot market while entertaining multiple bids, can now decide to disclose details of the Offers to all the bidders; Items such as price, conditions, closing date ... The seller can also start with a blind bid process and switch to sharing the contents process during the presentation of the Offers. A buyer, on the other hand, who prefers not to allow their bid to be public knowledge can write a condition in their Offer not permitting the seller to share their Offer contents with other bidders or, revoke their Offer if the seller insists on doing so.
At the end of the day this more public process should prevent the winning buyer from (excessive) over bidding as they would now likely know the second highest bidders offer amount, and bid accordingly.
Feel free to contact me at 905-330-9197 to discuss these changes further at your convenience.
It's nice to know that interest rates will start to come down later this year. Some owners will still have to sell due to the increase in carrying costs at their time of renewal. There are hundreds of millions of dollars in mortgage money up for renewal this year and in 2025. These forecasted interest rate cuts may not be enough to allow many home owners to stay in their homes. The banks and mortgage brokers are working with homeowners who are struggling to try and keep their homes, to come up with some creative financing.
