Here we go again!
September is one of our favourite times of the year – not just because of the still-nice-but-cooling weather, but because it signals the return of Toronto’s HOT fall real estate market. Here’s what we expect to see over the next few months:
1. More Inventory!
It’s been a painful summer for Buyers, with minimal good condos and lofts for sale, and even slimmer pickings for houses in central Toronto. September is one of the best months to sell in Toronto, so it naturally means more homes will be listed for sale. At minimum, the BREL team has some GREAT options coming up for sale!
Sellers: If you’re thinking of selling, September and October are PRIME selling months. It won’t be this good again until February, and it’s not too late to get the process started. Give us a shout and we’ll get the ball rolling.
2. Expect Bidding Wars to Get Even Crazier.
2016 will go down as the Year of Insanity as far as bidding wars are concerned. Gone are the days where $100K over asking is a good offer. And if you’re looking in some of the most competitive areas in central Toronto, here’s how much OVER ASKING properties sold for over the summer months:
And? Seeing 130% or 140% over-asking happened regularly too, so I expect will see more of that too. Ugh.
Buyers: Hire a wicked real estate agent. Be ready to move fast. Put your armour on.
Bully offers (a.k.a., putting in an aggressive offer before the bidding war date) used to be most prevalent at the end of a real estate season – May/June/November. By the end of the busy season, Buyers were sick and tired of losing bidding wars and wanted to take control of the process. These last few months have seen plenty of bully offers, and I expect more of the same this fall. [Related: All About Bully Offers]
Buyers: A bully offer isn’t for the faint of heart, but it can be the path to getting the house you want. Make sure you’ve got pro guidance on how to do this effectively.
4. Condo Prices Go Bananas
2016 has been an incredible year for condos, and we’ve seen far greater appreciation in prices than we have in years past. While 4% has been the norm for a while, the July statistics showed that condo prices had increased a whopping 10% in July. No doubt, one of the reasons for this: house prices have gone even crazier, pushing house buyers into the condo and townhouse markets.
5. Pre-Construction is Back
Sure, some may say that Toronto’s condo pre-construction market never really went anywhere, but with minimal new condos launches in the last six months, we haven’t been hearing the usual stories of line-ups and new condos selling out on the first day. That is, until a few weeks ago, when a few new condo projects were launched and sold out almost instantly, leaving plenty of buyers behind (condo-less). Here’s a link to everything going on in pre-construction in Toronto.
Pre-Construction Buyers: Getting prime units in prime pre-construction buildings is a specialty. Only a handful of real estate agents have REAL Platinum access to get the good units at the best prices. We’re not those agents – but we know who they are and can put you in touch.
6. Non-Resident Buyers Descend on Toronto
With Vancouver’s new property tax – 15% of the purchase price if you don’t reside in Canada (equivalent to $300K on a $2 million house) – foreign investors are looking for a new safe place to invest their money. Toronto may not be situated on the ocean, but as Canada’s biggest city, we are a multi-cultural hub of awesomeness (should I trademark that?)
Non-Resident Buyers: We help tons of non-residents buy property in Toronto. Read our FAQ for Non-Resident Buyers.
7. Real Conversations Start Happening About How to Cool Toronto’s Real Estate Market
Everybody loves an active real estate market, but it’s hard to argue that an annual 20% increase in prices (for houses) in one year is healthy. Let’s hope that this fall, we can have an open dialogue about an issue that affects every one of us in Toronto – a dialogue that isn’t politically-motivated or punctuated by rash decisions like we saw in Vancouver.
OK, truth be told, this is already happening. Our dedicated Rental Agent (the Awesome Dena) has been in a ridiculous number of bidding wars this summer – FOR RENTALS! Prices are up significantly which of course is good for landlords, but bad for tenants. I predict more of the same over the next few months.
What do you think will happen to real estate in Toronto this fall?