I am sure EVERYONE is very interested what is actually going on with the real estate market. I would love to share my thoughts. First of all, we are bombarded with so many numbers, and every media is manipulating these numbers into their own story. It took me several days to collect the information I am about to share, and I went to different sources in order to get and compare the numbers. Surprisingly, the information was so contradicting that it actually made no sense. Being a seasoned real estate professional, I use Toronto Real Estate Board as a only source of correct numbers when it comes to Toronto real estate prices and sales. Although the weather was extremely hot, and it seemed like nobody was buying or selling, he actual number of sales for the first two weeks in July was actually up by 2 percent compared to the same period in 2102. The average sales price in the first 14 days of July is $510,819, and represents an increase of 8.1 percent compared to the same period of 2012. So, what is actually happening? We have seen a little slow down in the first six months of the year. I believe a lot of it is due to the negative media reports and banks being extremely cautious. However, it all resulted in delayed demand. People have not stopped needing houses, they are just delaying the process. Once the future buyers realize that the market is not dropping, and they can’t buy a property that is worth $700,000, for instance, for $630,000 or $650,000, the market will return back to normal. Maybe, even for a short period of time, the market will see a larger than normal increase in the prices. What is happening with condos? TREB reported 5984 condo apartments being sold in the second quarter of 2013, which is 6 percent decrease compared to the same period of 2012. And the price INCREASE (yes, increase) of 1.7 percent. Here, are some interesting facts, in the city of Toronto, the number of condo units decreased only by 4.6 %, and the average price went up by 2%. I am comparing the second quarter of 2013 to the same time frame in 2012. The number of units sold in York region is down 11.1 percent, and the prices are down 2.1 percent. If you are uncertain about the condo pre-construction activity, I can tell you just one thing: good projects are selling fast. The ones that are not realistic in their price point are sitting dormant. Don’t forget, if 4 or 5 condo buildings will not be built, it will reduce the amount of inventory by approximately 10 percent. What do you think it will do to the demand and the prices? There is still NO BETTER INVESTMENT than real estate. If you want to protect your future, start thinking about real estate investment. We will be setting up a schedule for real estate investment seminars, starting in September. We would love to share our knowledge and expertise with all of you on how to safely and profitably invest in real estate. If you have any questions, or discuss your particular situation, we are here for you. Sasha Shmidov, Broker
Posted on: Thu, 25 Jul 2013 16:33:08 +0000
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