Corinne McCabe , Broker

Some things are a sure thing, death, taxes, and winter!  

Ah January. The month of new beginnings, salt stained trousers and increased listings. What we can tell you right now is that 2015 is starting off with a bang as listings continue to grow…and not a minute too soon. One just has to look at the number of multiple offers to know that demand remains high. Our office coffee consumption is also ramping up, so we know we are in for another busy Spring Market. 

We can collectively hear home buyers breathe a sigh of relief as more listings come to market. Across the downtown core, freehold listings jumped by 67% since the early part of the month to 221 units. That exuberance is only tempered by sales which increased by a remarkable 95% over the same period. Of those sales, 53% sold at or above the asking price. There is no question in our minds that all these numbers will improve over the coming months. 

After a quick run up in the number of condominiums coming to the market at the beginning of the month, it`s comforting to know that the number of new listings has stabilized. Meanwhile sales have increased by 30% in the downtown core and units selling at or above the list price have moved from 9% at the beginning of the month to the current level of 17%. With a lot of media coverage over the record prices in both the low and high rise sectors of the new condominium market, we expect that Toronto`s existing inventory will see healthy price increases this year.

Bosley Real Estate Ltd. is a full service boutique brokerage operating in Toronto and Niagara-on-the-Lake since 1928. We have three centrally located offices and over 230 sales representatives selling and leasing homes and condominiums in all the vibrant communities we work in. Our brand is well recognized thanks to our unique affiliation with Leading Real Estate Companies of the World. Our sales teams meet weekly to discuss market conditions, trending topics, and anecdotes that more accurately report on the true temperature of the real estate market.

What’s with the Toronto real estate market?  Will it ever stop?  Well here is what my crystal ball says for 2015.  If you are wondering when to buy, the answer is unequivocally NOW.  If you are wondering whether it is a good time to move up, the answer is YES.  If you are wondering whether to downsize now, the answer is YES.  While my real estate fingers remain crossed as always, I cannot help but point out that this is the Perfect Storm for real estate investment provided you act NOW.

The reality of the market is this.  First time buyers should not wait.  Toronto home prices continue to increase while lending rates decrease.  Move-up buyers should not wait.  With increased equity in their existing home due to steadily rising prices and decreasing interest rates, the opportunity to move to a larger home for little or no increase in mortgage payments is NOW.  And finally, the last of the downsizing baby boomers, should sell NOW, while decreasing rates enhance the affordability factor for move-up buyers.  Have you ever heard the expression, ‘take your money and run’?

There are three caveats to the present scenario.  Always pay your mortgage bi-weekly.  A five-year, $1,000,000 mortgage, at 2.89% interest, paid monthly has a balance of $852,932 at maturity.  The balance owing on that same mortgage, paid bi-weekly is $827,932.  Not a bad return for an adjustment in a payment schedule.

The second caveat is SAVE IT FOR A RAINY DAY!  If you have the money now to pay down your mortgage but would rather continue to take advantage of the low rates, SAVE IT!  When the time comes to renew your mortgage at presumably a higher rate, you will have the cash to pay down your balance, thereby offsetting the increase in rates.

And finally, real estate is a market.  A market goes up and down.  Therefore, if you are on the move, always buy and sell in the same market.  Do not rent and wait or you could find yourself priced out of the market, unless your crystal ball is better than mine!

All the best for 2015!

Corinne

Join the Friends of Stephenson Park on Febuary 15th for a skating party and bonfire.  There will be hot chocolate!  See you there.

Sponsored by REC Athletics www.recathletics.com and The Pantry Fine Cheese www.thepantryfinecheese.com

Looks like Coxwell Subway Station will be getting some upgrades.  

Check it out, and maybe go to the Open House for further details if this will impact you.

MARKET UPDATE FOR THE WEEK ENDING JANUARY 9^TH, 2015

Happy New Year and welcome to the first market insight of 2015. Every week our researchers pour through the listing and sold data posted on the Toronto Real Estate Board and separate out all the downtown statistics. Don’t bother waiting for those pesky and stale monthly reports, after two years of doing this you would be surprised at some of the trends we see and since we are analyzing the numbers fairly regularly, the information we provide is as near real time as it gets.

If you are a fan of auto racing then you would be familiar with the term “Gentlemen, start your engines”. That’s about where we are right now. New listings are at a two year low having dropped another 27% from last month. In addition, Downtown Toronto only registered 38 sales last week (by comparison, we had over 200 sales in a week during the top of the Fall Market). Clearly there is no rush to buy as only 5 of those homes sold at or over the asking price. Here’s the good news; Realtors are revving up for a busy early Spring Market. Our offices are busy shooting video, getting home inspection reports ready, and talking up hot new listings.

We are finding the resale condominium sector a little more interesting. Over the last month, new condo listing shot up nearly 30% with the bulk of the increase coming from the entry level suites in the central core. While sales are also down, there have been a number (16.3%) of suites selling at or above the list price. If history is any indication, we will see a lot more product coming on stream over the next few weeks.

The review of December is here...

There's been some discussion recently at the office about Radon Gas.  It's invisible and ordourless and occurs from decaying uranium beneath the earth's surface.  It then rises through the soil and seeps through cracks, holes and drain pipes in the basement.  

Radon gas contains radioactive particles that get trapped in your lungs everytime you breath.  As the gas particles break down, they release small bursts of radiation that can damage lung tissue, and eventually cause lung cancer.

In 2012 Health Canada released a report showing that 6.9 % of Canadians are living in homes with radon levels above the current Canadian guidelines.  Despite existing test results in your neighbourhood, radon levels can vary from house to house, so Health Canada recommends that all Canadians test their homes.

It's easy to remedy however with proper ventilation in the basement.  So no need to panic!

I've just bought a test kit today, and it's set up in the basement.  After 3 months, I will send it out to a lab to be tested. Once I've got the results, I'll blog again with the details.  I've been curious to learn more about this as it isn't talked about too much in Toronto, but I think it's better to be safe than sorry!

If anyone wants more information about where to get a test kit for your home or how it works, just let me know.

Stay tuned!

And a year later... I did the test and the results were way under what the acceptable levls are at.  Well worth the small costs to purchase the test ket, and easy to do and submit.  It really could be a life saver!