All I can say is “wow”. This summer marks a perfect parallel between the weather and the real estate market in Toronto. It changes week by week, and no-one making predictions are getting it right. It’s hot…it’s not. Is it global warming, Kathleen Wynne or unforeseen forces creating all of this chaos? Is there chaos at all, or is this just the way cycles of weather and cycles of markets work? Adding to the confusion is an array of some of the most contradicting reporting I can remember since being first licensed over 11 years ago. Want an example? Financial Post headline July 12/17: “Toronto, Hamilton continues to fuel record gains in Canadian home prices. Despite efforts to rein in hot markets, prices saw the biggest jump in the 19-year history of the index.”. Financial Post headline July 17/17 “Canada’s home sales fall most in 7 years, as Toronto market plunges. Sales across the country are down 6.7%, with the GTA leading the way with a 15% dive” Both stories relied on June sales numbers for their data. No wonder everyone is confused. Here is the problem as we see it. When prices are compared to the bar set 12 months ago, they have climbed 9%. Yet somehow reporters have started using comparisons going back to the incredibly volatile sales numbers from Feb and March that everyone in the industry identified as totally uncharacteristic, and unsustainable. Now that prices are “only” 9% more than last year, it’s being described as a market crash. If my stock portfolio value is 9% higher than 12 months ago, I’m happy. Houses are selling at fair market price. If they are overpriced, they will sit for a little longer. If they are underpriced, they are still selling in competition. Priced right, we are seeing homes sell in 2-3 days if there isn’t an offer hold-off date. So take a deep breath. Enjoy the summer. The value of your home isn’t in jeopardy, and it’s still a good time to buy…if you’re o.k with 8-9% per year increases in value 😊
In this edition of Smartmoves, we’ll check in on TREB sales numbers. We’ll also look at changes coming to the Condominium Act, and what that may mean for owners and Condo Boards. Finally, we’ll walk you through what our newly raised interest rates can mean to you across a variety of different banking products.
