Real Estate

GTA real estate market sees post easter bump

  • Last Updated:
  • Apr 14th, 2018 10:01 pm
Deal Expert
Feb 22, 2011
16504 posts
21843 upvotes
Toronto

GTA real estate market sees post easter bump

https://www.theglobeandmail.com/real-es ... ster-bump/

We’re now approaching the one-year anniversary of the day the tectonic plates shifted under the Toronto-area real estate market.

“We’re less than two weeks now from when the party came to an end,” says real estate agent Christopher Bibby of ReMax Hallmark Bibby Group Realty Ltd.
But he and other market watchers see signs sales in the Greater Toronto Area are starting to take off after a year of volatility following the introduction on Apr. 20, 2017, of Ontario’s Fair Housing Plan.
Last week, listings in many parts of the city spiked as soon as the Easter holiday weekend wrapped up. Increasingly, bidding melees are erupting and buyers are once again flinging around jaw-dropping amounts above asking prices.

Mr. Bibby saw listings for downtown condo units swell on the first day of business after Easter Monday. “Tuesday was probably the biggest day of the year,” he says of the new listings. “There was a surge.”
He says 86 condo units were launched onto the market on the same day in downtown Toronto. Many of the listings had April 10th set as the date for reviewing offers. That level of competition will make a sale more challenging for the condo owners, in his opinion.

“They’re all holding offers the same night. They’re going to have some disappointed sellers on the 10 th ,” he says.
Still, Mr. Bibby believes the condo market will remain strong. Houses priced above $3-million continue to sell more slowly, he adds, and therefore offer more opportunity for buyers to find a deal. Semi-detached and detached houses up to $1.5-million are snapped up quickly – sometimes with multiple offers.

“Anything freehold or condo under $1.5-million right now is out of control,” he says, pointing to buyers’ strengthening confidence.
As for the motivation of sellers, some have purchased condos that are under construction and slated to be finished in a year to 18 months. They’re willing to sell their current house now and rent for a while in order to lock in a profit, he explains.

Others have watched the average price in the Greater Toronto Area creep up for three consecutive months. They’re mulling whether to sell now and avoid the risk of another leg down.
“Some people are wondering if they should take some chips off the table.”

Last week the Toronto Real Estate Board reported that the average price in the GTA fell 14 per cent in March from the same month last year. The average price rose 2.2 per cent In March from February.
Real estate agent Al Daimee of Carbon Real Estate Group senses a turn in the market. “It’s trending up – we can feel it,” he says. “The question is, how fast is it picking up and how much will buyers be willing to pay?”
In the core 416 area code, the best buying opportunities were in July and August and again in November and December, he believes. “Buyers who are waiting for the bottom of the market have missed that opportunity. The first person who jumped in bought at the bottom.”

Mr. Daimee has heard from colleagues that bidding contests are re-emerging in places such as Oshawa and Ajax, east of the core.
In the northern parts of the 905 area code, the recovery in communities such as Newmarket, Aurora and Richmond Hill has lagged. “In Richmond Hill, this may be the bottom.”
Mr. Daimee believes one reason for the change in buyer psychology may be that the threat of interest rate hikes appears to have diminished. He recently drew 25 offers for a hard loft in the former Tip Top Tailors building after he set a “teaser” asking price of $499,900.

Mr. Daimee says the market in key neighbourhoods has been ultra-competitive this year after tougher “stress test” rules for buyers seeking uninsured mortgages came into effect on Jan. 1. The policy change has reduced the buying power of some borrowers, who have been pushed down into a lower price bracket. “That’s created some crazy competition,” he says.
With more buyers scrapping for entry-level houses, many people have given up and are now focused on condos instead. “They really have no other option but to look at larger condos.”
The unit at Tip Top Lofts provided just over 600-square-feet of indoor living space and an outdoor terrace of 322 square feet. After the seller rebuffed potential bullies, the loft sold for $651,000 on offer night and set a new milestone for a one-bedroom in that building.

Mr. Daimee was surprised that day when the bids arrived in a steady stream that suddenly became a flood. “In the last 30 or 40 minutes, all of a sudden we went from 10 to 25. We were just floored.”
A couple of bids came in below asking, a large number formed the middle of the pack, and a few were clustered at the top. “We had numbers all over the place.”
Mr. Daimee was baffled by the low-ball bids. As buyers’ agents contact his office, they are able to learn the number of bids that have been registered at that time. “Why would you submit offers below asking when you have a lot of offers?”

With his own buyers, Mr. Daimee advises them never to go into a heated competition unless they are serious about beating out their rivals. A lackluster bid just pushes up the top price, he points out, because most buyers’ agents will use the number of offers as a gauge of the premium they need to pay.
“I’ve talked people out of offering. I tell them flat out, you’re just hurting yourself on the next one that you really, really want.”
When he’s representing buyers, Mr. Daimee believes that bids that get the jump on the scheduled offer date have an edge. “We’ve told our buyers to try to bully on everything they can.”
72 replies
Jr. Member
Oct 27, 2017
129 posts
120 upvotes
Good news. Still kind of bad for the Surrounding Region's detached, semi and townhouse owners
Member
Feb 13, 2018
495 posts
539 upvotes
Is this news or paid ad by realtors? ?:) seems like a pumping piece...
Banned
Feb 23, 2009
1670 posts
1496 upvotes
Oshawa
So... will condos be down 20% this time next year like detached?
Better sell now!
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
rfdchan wrote: Is this news or paid ad by realtors? ?:) seems like a pumping piece...
Even John Paladis said we've bottomed out and he's the most believable agent out there.
Member
Feb 13, 2018
495 posts
539 upvotes
who is John? why is the most believable agent out there?
Deal Addict
Mar 20, 2017
1370 posts
1165 upvotes
After one year of Fair Housing Plan, Canada finally identified the true bubble. The bubble turned out to be a Liberal government and it will pop on June 7th 2018.
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
rfdchan wrote: who is John? why is the most believable agent out there?
Buddy if you dont know John Paladis, then I dont know what to say...but all numbers show prices have bottomed out since late summer and inventory has stabilized to 2-3 month levels like 2015-2016 and prices bottomed out and are slowly going back up... but keep believing we had another 10% crash the last few months.

No one is saying we are getting 30% y/o/y numbers but the 50% crash all bears dreamed up isn't happening...
Member
Feb 13, 2018
495 posts
539 upvotes
>> inventory has stabilized to 2-3 month levels like 2015-2016 and prices bottomed out and are slowly going back up...

I wish it were that easy.
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
rfdchan wrote: >> inventory has stabilized to 2-3 month levels like 2015-2016 and prices bottomed out and are slowly going back up...

I wish it were that easy.
it is that easy
Sr. Member
Apr 17, 2017
802 posts
590 upvotes
SKOMO85 wrote: Good news. Still kind of bad for the Surrounding Region's detached, semi and townhouse owners
Not really, those ones are rising in value as well. It's just the really high end of the market that's slower.
Sr. Member
Apr 17, 2017
802 posts
590 upvotes
GalvToronto wrote: After one year of Fair Housing Plan, Canada finally identified the true bubble. The bubble turned out to be a Liberal government and it will pop on June 7th 2018.
The crazy thing is that removing this Liberal government could actually result in higher real estate prices.
Sr. Member
Apr 17, 2017
802 posts
590 upvotes
Sanyo wrote: it is that easy
Yeah it really is that easy. It's all about supply and demand, and demand is starting to outstrip supply once again.
Deal Addict
Mar 20, 2017
1370 posts
1165 upvotes
elpresidente wrote: The crazy thing is that removing this Liberal government could actually result in higher real estate prices.
No doubts it will result.
Deal Expert
Feb 22, 2011
16504 posts
21843 upvotes
Toronto
elpresidente wrote: Yeah it really is that easy. It's all about supply and demand, and demand is starting to outstrip supply once again.
And yet people will say, it's different this time.
Deal Addict
Dec 4, 2016
2011 posts
1030 upvotes
elpresidente wrote: The crazy thing is that removing this Liberal government could actually result in higher real estate prices.
But if a Liberal/NDP coalition stays in power, it would be a mandate to tax GTA housing, just like BC. Thank about how many social programs can be paid for by just a 0.5% annual provincial property tax in GTA.
Deal Expert
Feb 22, 2011
16504 posts
21843 upvotes
Toronto
BlueSolstice wrote: But if a Liberal/NDP coalition stays in power, it would be a mandate to tax GTA housing, just like BC. Thank about how many social programs can be paid for by just a 0.5% annual provincial property tax in GTA.
Just what we need, something to raise the cost of living in Toronto even more for the working class... at what point do people stop working and just live off the free handouts?
Deal Guru
User avatar
Sep 8, 2007
10977 posts
14468 upvotes
Way Out of GTA
rjg4235 wrote: Just what we need, something to raise the cost of living in Toronto even more for the working class... at what point do people stop working and just live off the free handouts?
Many people have, and that decision is getting easier and easier with the ‘free’ stuff that comes around every election.
Sr. Member
Apr 17, 2017
802 posts
590 upvotes
BlueSolstice wrote: But if a Liberal/NDP coalition stays in power, it would be a mandate to tax GTA housing, just like BC. Thank about how many social programs can be paid for by just a 0.5% annual provincial property tax in GTA.
Fortunately it looks like the Liberals are facing an uphill battle to stay in power.
Member
Feb 13, 2018
495 posts
539 upvotes
Do you guys really see things trending up? Which area?

I see detached selling way below asking and seems lower than say last summer. And even townhouse is not moving anymore.

And this month pre approval runs out, and we have so many renewals coming due this year, not to mention large number of condo finishing up that buyers need to either sell or pay up. Do you guys how many units we are talking about?

Really that bright?

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