GTA Home Pricing is far better than most reports imply.

From a pricing standpoint, the spring GTA Housing Market is better than many publications imply.  To understand why, we need to put the current market in context.  It’s a unique time in the history of housing in the Greater Toronto Area (GTA) as a result of the previous three successive years (2016, 2015 and 2014) in which we saw unprecedented annual price increases, first 10% then 20% and then a 35% jump! That three year backdrop makes it easy to misunderstand, and easy to be misled by, current announcements of real estate market statistics.  Most year-over-year reports on PRICE are indicating a 15% drop March 2018 over March 2017, along with speculation about the reasons (government intervention, mortgage qualification rules and interest rate fears).  But if you’ve owned a home for the last four years, even with this latest 15% price drop, you’ve made a spectacular and rare return on investment, and its tax free for most people.  Home equity has increased dramatically in that time. 

Is a 15% PRICE DROP good or bad?  Obviously if you’re planning to sell soon, a small portion of your recent equity growth has been eroded. But the price drop is also a good thing in some ways.  Market speculators are leaving the housing market since flipping a home is no longer a safe bet. Speculators represent a false element of home demand, so it’s a good thing that the market is now less driven by their activity.  Also, the price drop over the last twelve months is a long-expected correction of a previously unsustainable price surge.  The market is now returning to a balanced position, where neither the buyer nor the seller has a consistent upper hand.  Balanced markets are good for all consumers, as it reduces the likelihood of catastrophic mistakes by those who cannot afford them (like the homeowners who bought not-yet-built homes at the highest price points of the market, hoping to sell their current home later at a market-peak price, only to discover that they are now in real trouble because they overpaid for the new build and cannot afford to sell their existing home at current prices.)

Click the link to read economist Derek Holt’s view, written by Sarah Niedoba

http://news.buzzbuzzhome.com/2018/04/gta-housing-market-much-better-people-think-economist-says-yes.html

If you have followed the last couple of years of “developments” in downtown Burlington, you’ll be well aware that residents have an increasing feeling of being left out of City Hall’s planning process.  In one recent example, signs went up announcing a 23 storey condominium covering most of a large block on Brant St. south, right across from city hall, in the heart of old downtown.  Residents had already been feeling as though City Hall had been secretly allowing developers to run roughshod over Burlington’s zoning and official plan, so this episode, along with several other recent baffling high rise announcements, has really angered many residents.  Whether its actually City Hall’s intent to mislead, or just its inability to communicate, inform and gather input from residents, is anyone’s guess.  But the sense that it’s the former is growing stronger.

Now Marianne Mead Ward, downtown Burlington councilor, has announced that she plans to join the October race for Mayor.  Marianne has demonstrated over her term as councilor, that she’s a very good communicator.  She has a background in communications, and has employed current technology to provide information in the ways that people like to consume it: email and video.  In my opinion, she’s really stood out among Burlington City Hall councilors in that she provides updates, listens and openly shares her “take” on important issues.  And she provides her views as though she’s a concerned Burlington resident, rather than as distant politician.  This may be the mix of skills that would help to enable residents to be informed, heard and involved.  Have a look at her Youtube video. 

Linda Maguire from Royal LePage is known for her kindness and energy.  These two characteristics cause her to do a lot of little extra things for her clients.  She deeply cares about her clients and helping them get to their life goals, and she understands that selling or buying a home is just a step toward those goals.  Because of her undying energy, she readily jumps in and helps out in ways that often surprise clients.

As an example, in one recent case, Linda’s client was concerned that a dead tree in the back yard of her home, was detracting from the open back yard of a home that Linda was listing for sale.  Linda thought, “lets just cut it down”.  She went home, picked up a “sawzall” and extension cord, and on a cold day, in the midst of a heavy rain storm, Linda got down in the muck in her jeans and Burberry coat, and started cutting.  Down came the tree.

While some purchasers jumped into the Oakville housing markets to find a property before the new OSFI stress test took effect, the majority of prospective homeowners elected to wait on the sidelines in order to gauge the impact of the new policies. This however did not translate into a large reduction in pricing, as inventory remained low across the regions. Existing residents are now also holding off on listing their homes, believing that pricing may be rekindled once new market conditions are absorbed. During the quarter the aggregate price of a home in Oakville increased by  14.2 per cent year-over-year to $1,105,412. 

“Aggregate" means a mixture of all home types (detached, townhomes, condo’s).  Big influences on price are the high demand and the low inventory (available homes on the market), and the new mortgage rules.  In addition, Millennials are increasing adding to the demand for homes.  

Full report here: http://markets.businessinsider.com/news/stocks/The-Greater-Toronto-Area-s-Housing-Market-Sees-Double-digit-Year-over-year-Price-Gains-in-the-Fourth-Quarter-of-2017-Despite-Softness-in-Quarterly-Trends-1012803221

Implications for buyers:  

As demand intensifies, compromise becomes more important.  Reconsider locations and style of dwelling to fit your budget and lifestyle goals, so that you get into the market and benefit from the next few years of price growth. Its a relatively balanced market, so there will be an advantage to acting quickly and that means get yourself well educated on your financing position and on the market, so you can make a quick decision when a good property becomes available.

Implications for sellers:  

There are lots of buyers out there but in this balanced market, they’ll have some level of choice, relative to the Spring of 2017.  Prices peaked in the buying frenzy as of April 2017.  Year over year, prices are well up so its been a great 12 months for capital appreciation.  The market will value your home based on comparable sales.  Properly priced homes are selling. Ensure that if you accept a conditional offer, try to ensure the buyers are well qualified (recently) relative to their financing plans. 

#LindaMaguire #LindaMaguireRE #Oakville

This gorgeous, one level condo, offers a well designed open concept floor plan offers close to 1000 sq. ft., 2 generous size bedrooms and 2 full bathrooms. There are 9 ft ceilings, laminate flooring in the living/dining areas & tiles in the kitchen, baths and front entrance. 

5-02 - 2420 BARONWOOD Drive OAKVILLE L6N0X6 $454,900

There is plenty of cupboard space in the kitchen with the extended cabinets as well as a breakfast bar for your morning coffee. You have the convenience of the complex with gas bbq hoo k up -no back neighbours! This home is conveniently located in the desirable Westoak Trails neighbourhood, close to HWYS, GO, walking trails, new hospital & amenities. Perfect for first time Buyers, investors or those downsizing .

Call for your private showing; Linda Maguire 905-979-9939

#LindaMaguire #LindaMaguireRE #CondoforsaleOakville #OakvilleON 

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