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Are There More Financial Pockets to the Real Estate Industry? Save Max Analysis on Real Estate Trends for 2021 – Financial Post

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Current MLS stats indicate an average house in GTA hit a new record in 2020 & priced of almost
$930,000 | 4,000 new listings in GTA as of a current trend

TORONTO, Feb. 11, 2021 (GLOBE NEWSWIRE) — The Canadian real estate market prices aren’t just fast growing by local standards. They’re growing fast by any given standard determined by any other country. This is mostly because of the influx of immigrants and the saturation of the big cities. Home sales recorded over Canadian MLS Systems did scale up by 12.6% with a total number reaching to 500,000 for year 2020, a new annual record. This has been the new world record set in amidst the pandemic.

The actual (not seasonally adjusted) national average home price was a record $607,280 in December 2020 and was up 17.1% from the same month last year. The new year brought us fewer than $100,000 residential listings on all Canadian MLS Systems, the lowest ever based on records going back three decades. This compared that to five years ago when there were a quarter of a million listings available for sale. Most definitely there is a high demand and low supply to the start of the year. This will only play out when we know the sales and price data as they populate this quarter of how many homes are available to buy in the months ahead. There was only 2.1 months of inventory on a national basis at the end of December 2020 – the lowest reading on record for this measure. At the local market level, 29 markets in Ontario were under one month of inventory at the end of December.

Interesting highlights from 2020 real estate industry include:

  • 95,000+ sales were reported through TREB’s MLS® System – up by 8.4 per cent compared to 2019. This included the month of December, with 7,180 sales – a year-over-year increase of 64.5 per cent.
  • Year-over-year sales growth was strongest in the GTA regions surrounding Toronto, particularly for single-family home types.
  • The average selling price reached a new record of $929,699 – up by 13.5 per cent compared to 2019. This included an average price of $900,000 in December – a year-over-year increase of 11.2 per cent. The strongest average price growth was experienced for single-family home types in the suburban regions of the GTA.
  • After a pronounced dip in market activity between mid-March and the end of May, market conditions improved dramatically in the second half of the year, with multiple consecutive months of record sales and average selling prices.

Save Max has predicted, the gap between the supply and demand fuelled with record low interest rates in the Toronto Market would lead to a strong price growth and sales in the year 2021. Prices are projected to increase another 10% by August of this year.  This is all based on current demand and the spring economic recovery.  Canada’s third quarter GDP growth was 40%. Since there are promises made by the US to renew free trade which should are considered to be positive for Canada and Ontario/GTA exports. This in-turn will benefit businesses and create opportunities for which real estate is essential. The lack of supply of homes is making it difficult to find a home in GTA. At the moment, people are moving to cities such as Vaughan, Bradford, Newmarket, Aurora, Milton, Stouffville, Pickering and Whitby to gain affordable and profitable properties for the long run. In the long run, there may be a drop in prices by an average of 20% basis the market style, the industry is currently portraying. Fundamentals of housing cannot really make a concrete evaluation as the human market demand is an emotional call.

As far as Peel region is concerned, the average detached house price rose 42% in the 416 districts to an astonishing media of $1,475,758. Houses rose 58.5% in the 905-area code to a high of $1,175,753. This trend is expected to continue and in peel region where in shortage of supply combined with historically low interest rates will push the cash rich buyer to look for bigger properties. The resumption of the immigration will increase the ever-growing demand for the house. Brampton & Mississauga market will have prices that are expected to grow in double digit and demand is going to be more than the supply.

Factors that will influence 2021’s real estate market:

  • More demand than the in-stocked inventory of Houses especially in GTA
  • Changing demand for commercial spaces because companies are implementing Work From Home practices.
  • Investment and development strategies in real estate are now emerging as key investment strategies more so right now
  • Sparing home spaces now to gain in extra inflow of income has also become a huge aspect of housing and real estate as there is going to be an influx of immigrants into the country very soon.

To learn more about Save Max or the upcoming real estate trends, visit www.savemax.ca or email info@savemax.ca

About Save Max Group of Companies:
Save Max Real Estate is one of the fastest growing brokerages and opened its first real estate office in Brampton in 2010. From making history in the field of real estate by achieving $100 million sales volume within 16 months of inception to achieving $4.8 billion sales volume and 9000 transactions until today, Save Max has always strived to stay true to its beliefs to deliver an exceptional real estate experience to all its valued clients.

The City of Brampton is home to Save Max and the company has had the opportunity to serve the residents and provide incomparable real estate services for past years and will keep doing the same in the future. Save Max is expanding and operating with 36 Franchisees all across Canada today.

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Pattie Lovett-Reid: Bank of Canada governor sees signs of 'excess exuberance' in real estate market – CTV News

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HUNTSVILLE, ONT. —
Over the past year, one thing has become abundantly clear as we work from home. We now know with crystal clear clarity what our homespace should look like. If it didn’t meet your new expectations, you likely have been on the move.

The result? Home prices are on the rise, and this has caught the attention of the Bank of Canada governor Tiff Macklem. 

Throughout the pandemic, one of the pillars of the economy has been the real estate market. Rising demand, constrained supply and rock-bottom rates are all conspiring to lead us to believe home prices have only one way to go: higher. 

Now to be fair, home prices have been on the rise, but we still have a long way to go before we get to the heated market of five years ago. But that doesn’t mean the Bank of Canada isn’t watching this closely. Macklem has stated he is seeing early signs of what he called “excess exuberance,” with people expecting the recent increases in prices to go on indefinitely. 

I have learned that nothing goes on indefinitely when one of the variables changes. In this case, it could be mortgage rates.

Canadians might have grown accustomed to fixed rates continuously declining after the five-year fixed rate in Canada reached a record low this past summer of 1.39 per cent.

This is about to change for the first time since the pandemic began.

According to RateHub.ca, fixed rates are on the rise in response to higher-than-expected inflation in January. And if this inflation continues to go higher and optimism around the vaccine rollout continues, Canadians should expect to see rates continue to move higher. By the end of the week, the expectation is for the best rate to be 1.54 per cent.

Call to action: if you are in a variable rate mortgage, you might want to consider locking in. If you are first time homebuyer, a mortgage pre-approval today will hold rates for 90-120 days. 

According to the RateHub.ca mortgage calculator, a homeowner with a 10 per cent downpayment on a $500,000 home with a five-year fixed rate of 1.39 per cent and a 25-year amortization would see their payments increase per month by $32.00, or $384.00 per year, if rates increase to 1.54 per cent.

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B.C. real estate: Bidding wars again hitting high-end housing market – Vancouver Sun

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One recent sale went more than $1.6 million over the asking price, while another went $700,000 higher.

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When the COVID-19 real estate boom started, multiple offers and over-asking sale prices were mostly happening for detached homes in the $1.5 million to $2 million range in parts of East Vancouver and North Vancouver, and lower-prices houses in the Fraser Valley.

Now, there are signs of this moving into more expensive housing. In particular, there were two eye-popping sales in mid-February, one that went for over $700,000 the asking price, and the other for more than $1.6 million higher than the asking price.

In a fast-escalating market with heated demand and multiple offers, it can be challenging for sellers and real estate agents to determine an asking price by relying on a property’s assessment or recent sales of a similar property. This can lead to sale prices that are hundreds of thousands of dollars over the asking price.

For example, at the beginning of the real estate boom between 2014 to 2018, a home in Shaughnessy sold for $2 million over the asking price of $5.99 million in March 2015. Later, in June 2015, there was a sale of a home in West Vancouver that caught attention for selling for $1.1 million over the asking price of $2.98 million. These were one-off sales, but they help set a higher comparable price or margin for next sales.

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Real estate agents say “cheap money” or very low interest rates are spurring sales and prices. Existing homeowners are refinancing at low rates and taking that cash to make another property investment. First time buyers or those with less home equity also benefit from low interest rates, but they are at a disadvantage when it comes to competing for sales that involve multiple and over asking price offers because they have to bid in smaller increments and take fewer risks such as forgoing a house inspection before the sale closes.

Vancouver real estate agent Muzda Stenner described the recent scene at a West Vancouver detached home on Queens Avenue that was on sale for $2.877 million.

“It was almost like a garage sale (with) cars lined up on the street,” said Stenner. “Even with COVID, and people wearing masks, it was a full house, and people were trying to get in.”

The home is assessed at $2.69 million. She helped her client bid “$3 million, with subjects” to buy the home. “And it was like, ‘no, no, no.’ I had one of the lowest bids.”

With some 19 other offers, the home went under contract in mid-February to be sold for $3.6 million or $723,000 over the asking price.

“It had great potential, but it was a very small house,” said Stenner of the 3,000-square-foot, two-storey home on a 12,000-square foot lot with ocean views that was built in 1957.

On the West side, a 4,000-square-foot, five bedroom, rancher-style home on West 41st Avenue just west of Granville Street went under contract in mid-February to be sold for $5.66 million.

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The property, which is assessed at $3.95 million got one offer at the asking price of $3.98 million, but three other offers that were all above that, according to the listing agent, Sarina Han. The sale price was $1.68 million over the asking price.

Han said the property has RS-3 zoning, which allows for a single-family home in keeping with the design and density of the surrounding area, even though it is on busy 41st Street near a major intersection at Granville Street.

The condo market, which has been described as more balanced in pricing because there is more supply of listings and because more buyers were seeking larger homes with outdoor space to cope with the pandemic, is also seeing some of this frenzied activity, according to some real estate agents.

Ian Watt said he was juggling two multiple offer situations for potential condo buyers one recent evening. One condo they were interested in got five offers and the other had 14 of them. It was a one-bedroom, 965-square-foot condo in Kits that was asking $899,999, but sold for $1.107 million or $207,001 over asking price.

“I lost out with my buyers because someone totally overpaid,” said Watt.

jlee-young@postmedia.com

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B.C. real estate: Bidding wars again hitting high-end housing market – Vancouver Sun

Published

 on


One recent sale went more than $1.6 million over the asking price, while another went $700,000 higher.

Article content

When the COVID-19 real estate boom started, multiple offers and over-asking sale prices were mostly happening for detached homes in the $1.5 million to $2 million range in parts of East Vancouver and North Vancouver, and lower-prices houses in the Fraser Valley.

Now, there are signs of this moving into more expensive housing. In particular, there were two eye-popping sales in mid-February, one that went for over $700,000 the asking price, and the other for more than $1.6 million higher than the asking price.

In a fast-escalating market with heated demand and multiple offers, it can be challenging for sellers and real estate agents to determine an asking price by relying on a property’s assessment or recent sales of a similar property. This can lead to sale prices that are hundreds of thousands of dollars over the asking price.

For example, at the beginning of the real estate boom between 2014 to 2018, a home in Shaughnessy sold for $2 million over the asking price of $5.99 million in March 2015. Later, in June 2015, there was a sale of a home in West Vancouver that caught attention for selling for $1.1 million over the asking price of $2.98 million. These were one-off sales, but they help set a higher comparable price or margin for next sales.

Advertisement

Story continues below

This advertisement has not loaded yet, but your article continues below.

Article content

Real estate agents say “cheap money” or very low interest rates are spurring sales and prices. Existing homeowners are refinancing at low rates and taking that cash to make another property investment. First time buyers or those with less home equity also benefit from low interest rates, but they are at a disadvantage when it comes to competing for sales that involve multiple and over asking price offers because they have to bid in smaller increments and take fewer risks such as forgoing a house inspection before the sale closes.

Vancouver real estate agent Muzda Stenner described the recent scene at a West Vancouver detached home on Queens Avenue that was on sale for $2.877 million.

“It was almost like a garage sale (with) cars lined up on the street,” said Stenner. “Even with COVID, and people wearing masks, it was a full house, and people were trying to get in.”

The home is assessed at $2.69 million. She helped her client bid “$3 million, with subjects” to buy the home. “And it was like, ‘no, no, no.’ I had one of the lowest bids.”

With some 19 other offers, the home went under contract in mid-February to be sold for $3.6 million or $723,000 over the asking price.

“It had great potential, but it was a very small house,” said Stenner of the 3,000-square-foot, two-storey home on a 12,000-square foot lot with ocean views that was built in 1957.

On the West side, a 4,000-square-foot, five bedroom, rancher-style home on West 41st Avenue just west of Granville Street went under contract in mid-February to be sold for $5.66 million.

Advertisement

Story continues below

This advertisement has not loaded yet, but your article continues below.

Article content

The property, which is assessed at $3.95 million got one offer at the asking price of $3.98 million, but three other offers that were all above that, according to the listing agent, Sarina Han. The sale price was $1.68 million over the asking price.

Han said the property has RS-3 zoning, which allows for a single-family home in keeping with the design and density of the surrounding area, even though it is on busy 41st Street near a major intersection at Granville Street.

The condo market, which has been described as more balanced in pricing because there is more supply of listings and because more buyers were seeking larger homes with outdoor space to cope with the pandemic, is also seeing some of this frenzied activity, according to some real estate agents.

Ian Watt said he was juggling two multiple offer situations for potential condo buyers one recent evening. One condo they were interested in got five offers and the other had 14 of them. It was a one-bedroom, 965-square-foot condo in Kits that was asking $899,999, but sold for $1.107 million or $207,001 over asking price.

“I lost out with my buyers because someone totally overpaid,” said Watt.

jlee-young@postmedia.com

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

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