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GTA Real Estate - Provide your input.

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Deal Guru
May 1, 2012
10538 posts
11427 upvotes
Toronto

GTA Real Estate - Provide your input.

Real estate threads are always a hot bed for discussion. However, the most recent one was unfortunately locked once again. Despite the loss, we have possibly a few days to discuss this issue without the fear of locking.

Present your thoughts on how RE has affected your area, and what you anticipate will happen this Spring. RE has not been robust throughout Canada, but there is no doubt that the GTA, GVR, and Calgary have seen skyrocketing prices.

Happy debating.

My personal input:

My neighbour 7 doors down sold her house recently:
Location: Aurora - Bayview Meadows
Open Houses: 1
Days on Market: 5
List Price: 789k
Not sure how much it sold for. The property also has a hydrant and a brown cable box on the lot. It's a corner lot, 3000+sqft detached on a court. Very nice home.
460 replies
Member
Apr 19, 2010
380 posts
32 upvotes
In my area,

Yorkmills and Donmills/DVP area (south of yorkmills).

We bought a place for 701k last june ...

Our neighbor is posting their house now (looks very similar to our house) for 869k ...

if its sold.. im just going to piss my pants ..
Deal Guru
May 1, 2012
10538 posts
11427 upvotes
Toronto
Another one from my friend:

Location: Leslieville, Toronto
Open House: 1 with 80+ people going through
Offers: 3
Sold Price: 8% over asking
House: Semi-Detached with quite a lot of work needed.
Penalty Box
Aug 11, 2005
4175 posts
1432 upvotes
It's pretty cold in Stouffville and certain parts of Markham.

I placed an offer on a detached in Stouffville a couple of months back which I thought was a fair offer (97% of asking) and was declined by the seller. Fast forward 3 months, the property remains unsold and there are significantly more properties and selection for the same price and the seller's real estate agent has been calling my agent daily to get us to put in the offer again!

Also have tons of salespeople from different development projects in Markham (which I originally signed up for further details) telling me of how much more incentives they have now and for us to take a look!
Banned
User avatar
Jul 16, 2003
10397 posts
1468 upvotes
Toronto
A bit different, but worth sharing anyways.

I was looking at a new construction in Vaughan (Vellore Woods by Arista Homes) and even registered online to be notified once they started selling them. This past weekend, they started selling and pretty much all 36' lots sold within the first few hours, with only 2 lots left as of yesterday. The ad 2 weeks ago said "prices from the mid 600's", then the last edition of the New Homes magazine shows "from the upper 600's", and when I called yesterday the 2 smaller lots left had a 15k premium and the houses you can put there start at 750k.
Andre Oliveira - Mortgage Agent
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Deal Addict
User avatar
Jan 4, 2009
4191 posts
5293 upvotes
on the links!
Certain trendy neighborhoods in the GTA will always command over-the-top prices. And as long as interest rates remain low, this will continue.

Based on recent comments from Stephen Poloz, this isn't likely to change for at least 18 months.
Deal Guru
May 1, 2012
10538 posts
11427 upvotes
Toronto
Luckyinfil wrote: It's pretty cold in Stouffville and certain parts of Markham.

I placed an offer on a detached in Stouffville a couple of months back which I thought was a fair offer (97% of asking) and was declined by the seller. Fast forward 3 months, the property remains unsold and there are significantly more properties and selection for the same price and the seller's real estate agent has been calling my agent daily to get us to put in the offer again!

Also have tons of salespeople from different development projects in Markham (which I originally signed up for further details) telling me of how much more incentives they have now and for us to take a look!
I received emails from Jefferson Forest developers (Richmond Hill) all the time about how they have raised the incentives. So I decided to show up and see how desperate they are. lol I have to say, desperate is the wrong word.

Singles *ALL SOLD*
Semis *ALL SOLD*
End Unit Towns *ALL SOLD*
Mid Unit Towns *3 lots Remaining*

So I asked them what is left, they told me this model house and 2 other units. This is one builder, the other builder had 2 inventory lots left. The remaining two builders (Madison and Forest Hill) are sold out. The reason they are giving incentives is so they can finally close up this development and need to move the remaining lots that no one wanted.
Penalty Box
Aug 11, 2005
4175 posts
1432 upvotes
Anikiri wrote: I received emails from Jefferson Forest developers (Richmond Hill) all the time about how they have raised the incentives. So I decided to show up and see how desperate they are. lol I have to say, desperate is the wrong word.

Singles *ALL SOLD*
Semis *ALL SOLD*
End Unit Towns *ALL SOLD*
Mid Unit Towns *3 lots Remaining*

So I asked them what is left, they told me this model house and 2 other units. This is one builder, the other builder had 2 inventory lots left. The remaining two builders (Madison and Forest Hill) are sold out. The reason they are giving incentives is so they can finally close up this development and need to move the remaining lots that no one wanted.
On the contrary, Markham, a historic hotbed where developments are sold out within hours of the first day now have plenty of lots remaining in all the latest phases. Just take a drive around and you will see tons of incentives which were non-existent when the market was hot a few years ago.
Deal Fanatic
Dec 5, 2009
5768 posts
3612 upvotes
Recently sold my detached house in Richmond Hill. Received 3 offers within 24 hours and sold for over asking. I still can't believe what I got.

Unfortunately I upgraded to a new house, also in RH, and paid through the nose :)
Penalty Box
Aug 11, 2005
4175 posts
1432 upvotes
But then again, speaking with some of my Realtor friends, it's kind of expected since the Developers have priced themselves out with their greed. Many of the projects are starting at around the same price of a resale 1 year old from the same project from a previous phase. When you factor in the closing costs, upgrades and the other miscellaneous, it's upwards of 30-50K more than a resale that you can move into today. Food for thought
Deal Guru
May 1, 2012
10538 posts
11427 upvotes
Toronto
Luckyinfil wrote: On the contrary, Markham, a historic hotbed where developments are sold out within hours of the first day now have plenty of lots remaining in all the latest phases. Just take a drive around and you will see tons of incentives which were non-existent when the market was hot a few years ago.
I have already replied to your concerns. The only two big developments in Markham currently are Accolades by Treasure Hill and Upper Unionville.

Accolades sold all its singles within 2 days. All that remain are some semis and towns.
Upper Unionville has basically three builders sold out and one builder with towns remaining that borders the Cemetery.
Upper Unionville Phase 3 sold out within 2 days, everything... even the semis.

These incentives are only here to move the least desirable lots. This is really not that unusual. I do drive around Markham a lot. I bought a house here, so I visit very often.


Let me tell you what's happening in Aurora 2 builders:

The Arbors by Brookfileds:
- Raised prices twice, each time by 15-25k within the first week of opening.
- Released more lots since first release was sold out within a week
- New released lots are snatched up mostly with a few here and there left.
- Charge lot premiums for backing into a freaking School. Seriously.

St. John's Forest by Mattamy:
- Phase 1 Sold out
- Phase 2 raised prices (20k ish) with just asinine lot premiums (80 to 150k premiums, seriously)
- Phase 2 almost sold out

Aurora Glen by Lindvest (HR Developments) Opening Soon

Aurora Trails by Fieldgate, Arista, Paradise, & Opus Opening Soon
Penalty Box
User avatar
Aug 19, 2008
1925 posts
503 upvotes
I'm working with a first time buyer who wants a place with a basement apartment that he can rent out to cut the mortgage down by 2/3. Great idea, but extremely difficult to get. Anything with a secondary unit that can be rented out is the holy grail. You've got buyers looking for them as well as investors.

He finally put an offer in on one of them last week but it wasn't even close. There was four other offers on it. We came in with full list which I knew was going to be on the low end of offers, but it ended up selling for 5% over.
Deal Fanatic
Dec 5, 2009
5768 posts
3612 upvotes
Donnie740 wrote: I'm working with a first time buyer who wants a place with a basement apartment that he can rent out to cut the mortgage down by 2/3. Great idea, but extremely difficult to get. Anything with a secondary unit that can be rented out is the holy grail. You've got buyers looking for them as well as investors.

He finally put an offer in on one of them last week but it wasn't even close. There was four other offers on it. We came in with full list which I knew was going to be on the low end of offers, but it ended up selling for 5% over.
What area was this?
Penalty Box
User avatar
Aug 19, 2008
1925 posts
503 upvotes
Luckyinfil wrote: But then again, speaking with some of my Realtor friends, it's kind of expected since the Developers have priced themselves out with their greed. Many of the projects are starting at around the same price of a resale 1 year old from the same project from a previous phase. When you factor in the closing costs, upgrades and the other miscellaneous, it's upwards of 30-50K more than a resale that you can move into today. Food for thought

Wasn't there someone on here a few months ago talking about how he was looking for new construction incentives of $100k off the price plus upgrades? Wonder how that worked out for him.
Penalty Box
User avatar
Aug 19, 2008
1925 posts
503 upvotes
fdl wrote: What area was this?
In Durham - - Oshawa to be specific. Hands down the best value in the GTA.
Deal Fanatic
Mar 24, 2008
6278 posts
2753 upvotes
Toronto
Do you guys think that these prices are sustainable in the long run (think 5+ years). It seems like they keep going up and up but once the interest rates increase, there may be a whole world of hurt for some people.
Deal Guru
May 1, 2012
10538 posts
11427 upvotes
Toronto
ksgill wrote: Do you guys think that these prices are sustainable in the long run (think 5+ years). It seems like they keep going up and up but once the interest rates increase, there may be a whole world of hurt for some people.
I don't think the increases in prices are sustainable. It cannot be, this is too hot for too long. But then again, what the hell do I know about the future. However, prices will never drop to a point where the average guy can go out and purchase him/her-self a detached at 2-3x income. That's comical.
Deal Fanatic
Mar 24, 2008
6278 posts
2753 upvotes
Toronto
Anikiri wrote: I don't think the increases in prices are sustainable. It cannot be, this is too hot for too long. But then again, what the hell do I know about the future. However, prices will never drop to a point where the average guy can go out and purchase him/her-self a detached at 2-3x income. That's comical.
Why should that person have to? Renting is a perfectly valid/viable option.
Member
Sep 23, 2013
271 posts
61 upvotes
Calgary
Real Estate is such a regional thing. Anyone who is saying "anyone who buys a house in Canada is an idiot", or "you can't go wrong buying a house", are both blinded by ideology.

It varies a lot even within each city. I'm from Calgary, and anyone from Calgary will tell you, buying a house in the NE is a lot different than buying a house in the SW.
Deal Fanatic
Dec 5, 2009
5768 posts
3612 upvotes
ksgill wrote: Why should that person have to? Renting is a perfectly valid/viable option.
No one should "have to". Remember, owning property is a privilege, not some god given right. i.e. It's not for everyone.

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