Oct 9, 2014
Toronto Real Estate Market Update - October 9 2014
Posted by: louisa
Louisa Baumander's Toronto Real Estate Market UpdateOctober 09, 2014
Happy Thanksgiving! May the good things in life be yours, not only at Thanksgiving but throughout the coming year. Thank you for the friendship and confidence you have shown in me. For this, I am truly grateful.
In a multiple offer situation, the anticipation is that offers will be without any conditions. Common conditions include a condition that allows the buyer to sort out their financing, a condition for a home inspection. Sellers these days, if holding an offer date, will usually provide the public with a recent Home Inspection they have had done specifically to circumnavigate the need for a buyer to have one performed.
How to win a house when there is no option but to include a financial condition, or your own home inspection? One way may be to put in an offering price that is so attractive, the seller will be willing to take the chance that your conditions will pan out. I do not advocate this, but merely offer it up as a strategy in the current market.
Because home prices are so high, very often a buyer will seek income from a property to help with their mortgage payments. If the MLS listing advertises a potential “in-law suite” is that suite actually legal?
• Do the local bylaws permit you to have a basement apartment?
• Does the apartment comply with the Fire Code?
• Does the apartment comply with basic building requirements?
• Does the apartment comply with basic building code requirements?
• Does the apartment comply with basic electrical safety requirements?
• Has the apartment been registered?
Click here for the Carson and Dunlop article.
Will the phrase “Seller and Seller’s agent do not warrant the retrofit of the basement apartment” hold either party harmless?
The best thing for a seller to do in such a situation is to make no reference in a listing to a nanny suite or in-law apartment. Just describe the basement as it is: “basement has kitchen, living area, bathroom” etc. Many owners will rent out an illegal apartment “under the radar”...just so long as they understand the ramifications.
Toronto Real Estate Market Statistics
8,051 properties sold on the MLS for the month of September. This is an increase of 10.9% over September of last year’s transactions reported through the TorontoMLS system in September 2014.
On a year-to-date basis through the first three quarters of the year, sales were up by 6.9 per cent annually to 73,465. "Despite a persistent shortage of listings in some market segments, we have experienced strong growth in sales though the first nine months of 2014. This is evidence that GTA households remain upbeat about purchasing a home. The majority of home buyers purchase a home using a mortgage. The share of the average household's income dedicated to their mortgage payment remains affordable, which is why buyer interest has remained solid," said Mr. Etherington.
September’s average home price was $573,676 – an average 7.7% increase in prices when compared with 2013. Average year-over-year price growth was strongest in the City of Toronto, both for low-rise home types like detached and semi-detached houses and for condominium apartments. The average selling price year-to-date was $563,813 – up 8.5 per cent compared to the first nine months of 2013.
If you want specific numbers click here for the Home Price Index. I took a look at September’s sold prices. If there is a particular area/type of interest to you, let me know and I will check.
3X3 bedroom semis sold; average sale price $581,333; 109% of asking; 5 days on market.
C07: Willowdale West
4 detached bungalows sold; average sale price av. $953,750; 105% of asking; 7 days on market.
8X 4 bedroom detached 2 storey sold; av. $1,732,549; 107% of asking; 8 days on market.
E02: Woodbine Corridor
5 X 3 bedroom , 2 storey semis sold; av. $803,886; 105% of asking; 8 days on market.
E03: East York
6 x 2 storey detached; av. $728,333; 104% of asking; 15 days on market.
W01: High Park/Swansea
9 x 4 beds detached sold; av. $1,578,555; 108% of asking; 11 days on market.
W02: High Park North
2 X 4 bedroom detached; av. $1,121,000; 121% of asking; 7 days on market.
4 bungalows sold; av. $550,900; 103% of asking; 11 days on market.
I just wanted to mention that while Sotheby’s is a brand known for luxury, our focus is in providing an extraordinary customer experience in any price range. Our brokerage was launched worldwide in 1976 and is founded on the same commitment to exceptional service that characterizes the Sotheby’s Auction House. We launched in Canada in 2005 with six offices and now have grown to over 25 residential and resort markets nationwide. Worldwide, we have 700 offices in 49 countries. Toronto Real Estate is a huge draw for overseas investors. When a listing is entered into the system, it reaches these markets through the fabulous Sotheby’s International Realty Site. In July alone we had 6.7 million page views...has to make a difference.
Any listing on our website is automatically on the websites for the following publications:
The Telegraph; James Edition; The New York Times; International New York Times; GC PRIVE; Luxury Estate; The Atrium; The Wall Street Journal; REAL-Buzz; HOUSE; Hong Kong Tatler; LP; PropGo Luxury.
Take care and Kind regards,