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- Monthly market updates including our perspective and in-depth analysis of monthly data from a seasoned market strategist
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- Answers to your frequently asked home buying and selling questions
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- Information from our conversations with local industry experts
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This Month’s Edition
The Greater Toronto Area continues to be one of the hottest real estate markets in all of North America, and it’s been that way for a very long time. We have more construction, with more construction cranes, than any other city in North America. We have higher house prices than almost anywhere on the continent. We have more registered real estate agents than any other metropolitan area in North America, maybe the world. So what exactly is going on? What is causing this real estate frenzy?
Even a major world event such as the Covid-19 pandemic was unable to derail our real estate market. Except for a very brief period of shock when the pandemic first hit, the market has fully recovered, and that initial pause in activity is already forgotten today. During 2021 we’ve seen incredible price increases, especially in the second half of the year. Is all of this this sustainable, and will the trend continue?
The current state of the GTA housing market
2021 produced robust sales, and record-breaking prices. At the same time, the number of properties offered for sale shrunk to record lows. Nobody wants to sell, and everybody wants to buy.
Average prices in the GTA
While the numbers for December won’t be out for a few days, we know that in November, the average price for all housing types across the GTA rose to $1,163,323, up from $955,889 last year.
The average price for a single detached home rose to $1.5 million, a 30% increase year over year! Semi-detached homes rose to an average of $1,206,016 and condos rose to $715,104. That means condos in the GTA now cost about the same that an average detached home did in 2014.
The GTA has remained a seller’s market. There are bidding wars everywhere, even during the Christmas holidays!
What’s going to happen in 2022?
While there are ongoing headwinds and uncertainties created by Covid, that doesn’t seem to be the deciding factor on where real estate prices are headed. Inflation spiked for consumer goods like groceries, consumer goods, and fuel for the car. The government noticed, and now it’s almost certain that interest rates will be headed higher in 2022. This could end up being in small increments, maybe a few times throughout the year, with the total cumulative rate increase ending up maybe 1%. That would slightly dampen real estate activity, but I don’t think it will kill the market.
Our local real estate market is a beast, with many factors anchoring that strength. Here’s just three:
1.) immigration into the area will remain extremely strong – the current federal government has set targets of 410,000 people being admitted to Canada during 2022, and we know that roughly half with settle in the GTA. That’s about 80,000 new homes required just for the newcomers, every year.
2.) the historic lack of inventory of houses and condos for sale stems from a reluctance of people to sell, and that trend will continue through 2022. Many people would like to sell their property, but are worried that they won’t be able to find a new one that matches their needs, at a price they can afford, so they hold off
3.) the local economy will continue to grow, especially with high paying jobs.
Based on these factors and others, I believe 2022 is going to be another “up” year in the GTA. I will be publishing a more detailed look at this on my YouTube channel in January, and hope you will all get a chance to check it out! Don’t forget to subscribe, so you’ll never miss an update.
In the meantime, enjoy the January 1st holiday, and have a very Happy and Prosperous New Year!
Randy Selzer, salesperson, Sutton Group-Summit Realty Inc., brokerage, independently owned and operated, 416.433.3556 direct 905.897.9555-office
Listing Before a Repair or Fix-Up is Done?
If you’re thinking of selling your home, you may have walked through it and discovered that you’ve been ignoring work that needs to be done to make your home look its best. For example, you may have been living with a cracked floor tile that needs to be fixed, or a damaged closet door that requires replacement.
Is it a good idea to get these maintenance issues dealt with before you list? Typically, yes. You want your home to show well. Anything unsightly or concerning will get noticed by buyers.
Fortunately, investing the time and money to get the work done will pay off. It will help you sell your home faster and for a good price.
However, there may be circumstances in which you need to list before repairs and other improvements are completed. For example, if you need to sell within the next few weeks, you may simply not have enough time. In that case, there are a couple of options. Either you can arrange for the work to be done and let buyers know that it’s been scheduled; or, you can let buyers know about the issues and let them know you’re selling as is.
Fire Safety Checks You Should Do at Least Once a Year
Chances are, you know that you should change the batteries in your smoke detectors at least once a year — even if you suspect the batteries are still good.
But that isn’t the only fire safety check you should do annually. Here are some other recommended tips to help keep you and your family safe.
Clean your stove burners and oven regularly. Hard grease build-up can become combustible.
Check your cupboard for cleaning products, paints and other liquids that are flammable. Read each label carefully. Use and store each product only as recommended.
If you keep a fire extinguisher in your kitchen — and you should — confirm that it is still good. Extinguishers are like food. They have expiry dates!
Go over your fire escape plan with your family. Make sure everyone knows exactly what to do if a smoke detector goes off or if there’s a fire.
Check that all windows open easily, especially upper floor windows.
Check appliances you use often, such as hair dryers, for worn or frayed cords.
Regularly clear away lint build-up in the clothes dryer. Check the outside dryer vent annually to make sure it’s clear and working correctly.
If you have a wood-burning fireplace or stove, get it cleaned and inspected by a licensed technician once a year.
Many local fire departments offer homeowners free tips and even in-home advice and inspections at no cost. Contact your fire department and ask about programs available to you.
Getting an Early Start on Selling your Home
You’ve probably heard the expression, “The early-bird gets the worm.” It refers, of course, to those who get in early and reap the rewards. For example, if you arrive early to a retail store for a big blowout sale, you’re likely to get the deals before the inventory runs out. The stragglers who come later will miss out.
Well, this same wisdom can be applied to selling your home. Starting the process early — even if that means simply doing some initial planning — gives you the edge in several ways.
First of all, you get extra time for preparation. That means you can get your home cleaned, uncluttered and staged without feeling rushed. You also get more time to find out how much your property will likely sell for on today’s market. That’s important information, especially if you’re also looking to finance a new home.
Secondly, there’s less stress. You’ll have more time to make the right decisions. The last thing you want is to be scrambling around, last minute, trying to get your home ready for sale.
Finally, with your initial preparations done, you’ll be able to put your home on the market at a moment’s notice. That’s a huge advantage that’s likely to lead to selling your property more quickly and for the best price. In fact, by getting an early start on the process, you might even find that this is the best time to list — and you’ll be able to do so, with confidence.
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