I have been working on this blog post all week. I started to write this around the time the Toronto Real Estate Board announced the August numbers. That news release compelled me to dig into the numbers more deeply. Between the extra research and showing properties to clients, because after all, my job is to help people buy and sell real estate, not write blogs, it has taken me a little longer to get this post done. I love writing these and love helping people make great decisions when it comes to their real estate transactions, and I hope that passion shows as you read these.
Stefanos Papadopoulos's blog
Is now the time to buy/sell?
One question people always ask me is when is the right time to buy/sell? Just as with stock markets, there are ups and downs in real estate markets. The challenge is knowing when is the top or bottom. Few people, if any, can truly time the market consistently. But many people can time it generally. You may not buy at rock bottom, or sell at the peak, but if you can come close enough then you have likely made gains.
June is such a wonderful month. Everyone seems happier in June. The kids are getting ready for summer vacation. The sun is shining more than at any other time of the year. And for many, a housing move is in the cards.
Have you noticed the change in season? Things are a little different out there. The frenetic pace of the spring market has subsided. Now you can look at a listing and still see it listed the next day. Not only that, but you may see many more just like it too! But I’m not sure you see it, if you are a buyer. The interesting thing about buyers is that when the summer comes, they leave. And many buyers have left early, taking the Thursday and Friday off before a long weekend.
It is a cold evening on March 15, 2017. You line up with 17 other hopefuls for a chance to be the successful bidder on that new property you have dreamed of. Cars line the street of the house with realtors and clients alike, idling to stay warm. The phone rings and you did it! You got the house! You paid $300,000 more than the asking price. You paid more than anyone else on the street was willing to pay, but you got your house!
April in Toronto: Hot, then Cold
The month of April is always one of optimism. The tulips pierce the ground, stretching to the sky as the sun makes longer appearances. The Blue Jays return to the field, for those baseball fans like me, waiting for the Rogers Centre roof to open on a hot Saturday afternoon so we can watch the boys of summer while drinking a cold beer. It is also a month of temperature swings with hot days, then cold days as the clouds hide the sun and rain on our parade.
Yesterday, Thursday, April 20, 2017, the Ontario government announced all kinds of changes with respect to buying/selling and renting real estate in the Golden Horseshoe Area of Ontario. To see the entire list of changes, then see it here: https://goo.gl/Vit0op
The highlights of the changes are as follow:
As a real estate market heats up, everyone worries that a bubble is forming and a correction is coming. Every real estate market encounters this. Investors and market timers chime in with their predictions as to when the bubble will burst. Parents become distraught that their children will never be able to afford a house based on rising prices and have to live with them forever. I’ve got three kids and as much as I love them it scares me to death I may never be rid of them!
With prices escalating 20% in just a month, the end is here for Toronto’s real estate market for many people. When just a few months ago a budget of $800,000 was healthy, today it pushes you to the outskirts of the city at best.
The real estate market, as you may have heard, is quite frenzied here in the GTA. GTA as I use it is an acronym for Greater Toronto Area, and not Grand Theft Auto as my kids use it. They ask me all the time how I sell houses in a video game. Granted, selling houses in the real word, especially in the GTA, really is a game. If you don’t hire someone that plans to win the game for you, then you could be waiting a long time to buy that house.