To keep our clients better informed of the Toronto market, we're initiating this weekly instalment on our blog. The CP Weekly Meeting Highlights will summarize the most salient information from our weekly office meetings, headed by Real Estate veteran, lawyer and all around good guy, Chestnut Park's Broker of Record Chris Kapches.  We are doing this as we feel that the media is giving a very one-sided perspective of market activity and seems to focus on the GTA statistics rather than Toronto specifically. 

Psychology
Though this topic wasn't addressed at this week's meeting, it has been a central theme to discussions of market activity over the summer months. Measures taken by the government, coupled with already inflated prices, an over-abundance of inventory and negative news in the media have all combined to give us the market we're currently in. Buyers felt the market had further room to decline, while many sellers felt they should still be getting the prices we were experiencing up to mid-April; when prices were at their peak. Today, the media continued this trend as it posted declines of 40% in "Toronto" despite these numbers reflecting price declines throughout the entire GTA, which, includes areas like Richmond Hill and Mississauga. This lack of specificity has led many to believe similar declines have been experienced in the City of Toronto proper, when in fact, this just isn't the case. As an example, in July inventory levels were sighted as increasing by 30-40% when in fact the numbers in the City of Toronto were closer to 2%. Whether these skewed stats will continue to contribute to an already confounded public remains to be seen. 

Increases in Sales for August
As our meeting was held yesterday and full numbers were not yet published, Chris was looking at the market based on stats from August up to that point. Now having the official numbers for the month, we've seen a small increase in the number of sales through the month of August; . However, it appears as though we will continue to see a negative variance in sales prices and numbers for the month of August b/w 35 - 38% in the GTA. One thing that seems certain however is that the market appears to have stabilized from the large dip starting in June. The average sale across all housing types in the GTA, price came in at $732,292, which is actually a rise of 3% over August 2016, but a decline from July's average of $746,033. 

Negative Variances
Despite this plateau in price declines, we will continue to see negative variances throughout the next 12 months, simply because stats for declines are done year over year. If we can see a move to an annualized appreciation in values to the 5-7% mark, the market could be considered as being strong and healthy. 

Annualized Growth Rate
Chris has some added concerns regarding Canada's annualized rate of expansion (based on the last quarter) coming in at 4.5%, making Canada the fastest growing economy in the G7. How this impacts interest rates going forward is the big question, and how that rate hike will impact the housing market; the expectation would be a rate of 3.5%. This could effectively eliminate buyers at the low-end of the housing spectrum. Compounding that problem is that the most affordable housing product for that population is condominium apartments; a product that already has very little in terms of inventory. The increase is likely to come out in late October as opposed to this week. 

Too Soon To Tell
We will have a clearer picture of the market once numbers for September come in. From the response in the office, we are likely to see an increase in inventory in the Toronto (read 416) area over the month.

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As reported by Houzz.com, Netflix is set to release a new documentary all about design. From architecture to industrial design and almost everything in between, the first 8 episodes will focus on professionals in the industry who've made a mark on modern design. Architect Bjarke Ingels, interior designer Ilse Crawford and graphic designer Paula Scher are just some of the fabulous designers to be featured in the series. We'll be binge watching this one for sure.

If you live in the GTA, or Canada, or even the U.S., you've likely noticed how booming the real estate market in Toronto has been over the last 2 years. With figures like a 22% rise in housing prices year over year, it's hard to gain some sanity amongst all the headlines. But what if you're still renting and aren't sure if you can or want to get into the market? What's  a realistic downpayment? Does purchasing a property even make sense at this stage and what should you be aware of? If you do nothing else, start with these 5 steps...

1 - Contact a Mortgage Broker

Before getting out into the world of available properties, it's important to get an understanding of what you can afford? A mortgage broker is one of the best ways to determine what your current level of income and credit rating can buy you in the market. The Glenn Team work with a fantastic group of brokers at MorCan Direct. Marcus Tzaferis and his team can secure excellent loans with rates that compete with, or undercut the banks and often in a fraction of the time. Like anything else, doing some comparison can help too, so if you've got the time to meet with someone at a bank or other brokerage, you should take that time. 

2 - Contact a Realtor

This may seem an obvious or self-serving piece of advice, but with a slew of new online options available to today's buyer, speaking with a real and experienced professional - in person - can answer a lot of questions much faster than google and message boards can. A great Realtor should be able to look at your budget and want list and give you honest advice about where you can live, in what type of property and what expectations you should have about those options. 

3 - Get Out There

How does a 900 square foot condo compare to one that's only 500 square feet? Do you really need 2 washrooms? What does a South facing view offer that a North doesn't? How does a 16 foot frontage compare to a 20 foot frontage? With the sheer diversity of housing types and styles, not to mention the less exciting but equally important mechanical distinctions; ie. gas vs. electric, LED vs. halogen, marble vs. caesarstone counters etc. it's important to start to see what's out there. Though the prices will certainly vary over time, the products and the particularities will remain relatively consistent and if you haven't been face to face with at least a few, how will you know when you find the one or not? Sure, you may have seen some great photos, but let me tell you from experience that photos can lie! Wide angle lenses do wonders in small spaces so do yourself a favour and get out there to see what the property is really all about.

4 - Do Your Own Research

Regardless of the qualifications of any professional you're dealing with, your individual style and preferences may not gel perfectly with your Realtor's so it's always a good idea to do some research in your own time. Which neighbourhoods might you prefer (if you're budget allows you to make that choice)? Are there particular amenities you want nearby? Do you know the difference between Georgian or Victorian? Do you even care what it looks like or just that it has a garage or a skylight in the bathroom?

If you have friends or family who've recently purchased, they may be able to give you some of their own advice about the buying process or might have a horror story to share that better informs your choices. The point being that nobody knows what you like or dislike as much as you and the more you know or are aware of, the better the position you'll be in when seeing properties, or asking questions of your Realtor.

5 - Be Prepared to Compromise

So you've just seen your 10th property and are convinced that this is the one... with the exception of that horrible bathroom! Don't fret! Though every design and real estate show will have you believe that houses all come renovated and ready to move in, there was once a time when people purchased property as a long term investment and were prepared to make concessions for the things they could fix over time. Though the pace of the current market can work well for a property-flipper, a sound foundation and (as boring as it may seem) well installed plumbing and electrical can be just as important as the lighting fixtures. And with styles changing as quickly as the seasons, will today's modern masterpiece be as popular in 5 years when you're considering moving into something else? Plans change and so do markets, and if you're not prepared to make some compromises, you could miss out on a fantastic property.

FINAL THOUGHTS

Remember that like a good book, any property is more than just what's on the surface, so put a great team together, get prepared with as much research as possible, get out there and finally achieve that dream of becoming a home owner!

If you've got questions, we'd love to help answer them! Contact Susan or Jeremy today. 416-925-9191