Homebuyers in the Greater Toronto Area better prepare to spend more than they ever have before.
The Toronto Regional Real Estate Board said Monday that the average selling price for homes in the area will top $1 million for the first time later this year.
The board predicts by the time 2021 ends the average selling price in the region will be $1.025 million, up from an average $929,692 in 2020.
“We’ve reverted back to the scenario that really we’ve been talking about a lot over the past number of years, where the supply of listings coming onto the market is not keeping up with growth in transactions,” said Jason Mercer, TRREB’s chief market analyst, at a press conference.
“Taking those demand factors into account, plus what we’re looking at for new listings coming into the market, that spells continued tightness.”
Mercer’s remarks come as the area rang in the new year with an unprecedented flurry of home purchases that pushed the number of sales up by 52 per cent and the average selling price to nearly $1 million.
The spikes were fuelled by an atypical winter, where people were discouraged from gathering for the holidays in an effort to quell COVID-19, the region wasn’t often being blanketed with snow and interest rates were low.
That left people with fewer social engagements, more lending power and more time to hunt for new properties, especially ones outside the hot downtown core that offered an escape from the city while people continue to work from home.
Vy Ngo, a broker with Big City Realty Inc., said she heard of a realtor putting in an offer Monday morning for a home in Whitby, an area well outside Toronto, and by noon it already had 29 bids.
“The market’s been crazy since January,” she said.
“If a pandemic and COVID can’t stop the housing market, then what else can stop the housing market?”
TRREB said January home sales reached 6,928, up from the 4,546 homes sold in the same month last year.
The average selling price was up by 15.5 per cent to $967,885, an increase from $838,087 in 2020.
The number of new listings also climbed to 9,430, a 20 per cent spike from last year’s 7,848.
Homehunters in the region won’t find much reprieve as the year progresses, TRREB chief executive John DiMichele warned.
“I’m not convinced at all that we’re going to have a blip no matter how cold it is. People just seem to be out there,” he said. “It’s going to be a steady climb.”
The board predicts sales will total 105,000 in 2021 and new listings will hit 160,00, up from 95,115 and 156,755 respectively last year.
TRREB president Lisa Patel said those spikes will be fuelled in part by the rollout of COVID-19 vaccines, declining cases of the virus in hot spots and very low mortgage rates.
“Once we shift out of this lockdown, those that are comfortable will have the opportunity to put their homes on the market,” she said.
“That might open up supply a little bit more.”
The board believes new condominium apartment listings will slow towards the second half of the year and low-rise listings will remain constrained.
Market conditions for low-rise homes, including detached houses, will remain very tight, with sales rising at a faster pace than listings, TRREB warned.
This report by The Canadian Press was first published Feb. 8, 2021.
Coldwell Banker Complete Real Estate announces the release of "The Report," A Comprehensive Profile of the 2021 Luxury Real Estate Market in Canada, the US and Mexico – Canada NewsWire
“The Report” includes input from various Luxury Specialists from Coast to Coast, including Calgary based luxury team; THE STARNES GROUP.
CALGARY, AB, March 8, 2021 /CNW/ – Today, Coldwell Banker Complete Real Estate announces the release of “The Report: 2021 Global Luxury Market Insights,” an in-depth analysis of emerging luxury markets and buyers, curated by Coldwell Banker Real Estate LLC and Coldwell Banker Global Luxury®
“This is an important publication for those invested in the North American luxury real estate market and includes across the board comparisons for the median sold prices, days on market, and list price to sale price ratios for the top 10% priced properties of key Canadian cities including Calgary“, said Susanita de Diego, Owner/Broker of Calgary-based Coldwell Banker Complete Real Estate.
Included in the report are noteworthy trends shaped by an extraordinary year full of uncertainty and change, as well as top performing luxury markets of 2020 and those to watch in 2021.
“The Report” combined sales data analysis with a number of in-depth interviews from Coldwell Banker® Global Luxury® Property Specialists from diverse real estate markets. An entire section was dedicated to Canada, with Calgary being noted as one of the Canadian markets to watch in 2021.
Rachelle Starnes, President and CEO of luxury real estate specialists, THE STARNES GROUP, a part of the boutique Calgary brokerage Coldwell Banker Complete Real Estate, states “The pent-up demand for luxury homes over $1M is quickly emerging with sales in January and February of 2021 hitting 198 units sold (single family detached homes, CREB MLS® Reported Sales) in Calgary, Rocky View County and Foothills County. This sets a record for the last five years. The sales for the first two months of 2021 are up 128% over 2020 and 133% from 2019, for the same period.”
Starnes says “We should see an increase in prices with this excessive demand which has been fueled by the lowest uber luxury home prices we have seen in years. Resale prices are far below the cost to build and funds previously used for travel are now being invested in ‘staying at home.’ Because some mortgage interest rates have increased this week from 1.44% to 1.74%, prudent buyers will be pushing to get their interest rate locked in and purchase within the next 30 days.”
As wealthy homebuyers embraced new lifestyles, new trends prevailed. The top preferences expected to have staying power over the next 5 years include: the home office (27.5%), demand for a second home (22.5%), and the desire for single-family detached homes (22.5%).
“The Report” identified four categories of emerging markets across the luxury home sector offering a range of lifestyle amenities, cultural experiences, and educational opportunities.
“International buyers used to account for more than 30% of luxury home sales in our market but travel restrictions ended the influx in 2020. Properties in many luxury areas in and around Calgary which sold in 2012 for C$4M are now being offered for less than $2.5M and properties once offered at C$20M are being auctioned by luxury auction houses with sale prices less than C$6M. Because of the lowest luxury prices we have seen in recent history there are incredible opportunities in Alberta for luxury buyers. We predict even greater demand once the borders reopen and international buyers flood back into Alberta for its clean air and reputation as a destination of choice for luxury buyers”.
– Susanita de Diego & Rachelle Starnes with Coldwell Banker Complete Real Estate
SOURCE Coldwell Banker Complete Real Estate
For further information: Leanne MacDonald, [email protected]
Excessive exuberance: Canada home prices boil over as policymakers sit back
By Julie Gordon and Nichola Saminather
OTTAWA (Reuters) – Canada‘s red-hot housing market has become a bonfire, spurring comparisons to earlier bubbles and prompting calls for cooling measures. But policymakers are standing back, unwilling to intervene for fear of undermining Canada‘s still-fragile economic recovery from the COVID-19 pandemic.
Real estate agents say after months of end users driving sales, investors are again a factor in the market and flipping activity is picking up. In response, desperate buyers are over-extending themselves, paying tens of thousands more than originally budgeted just to get in.
While Bank of Canada Governor Tiff Macklem in February acknowledged “some signs of excess exuberance” in the housing market, he downplayed the need for action.
“Right now the economy is weak, we’re just coming out of the second wave. I think we need the support, we need the growth we can get,” Macklem said.
The pandemic shift to working from home coupled with rock-bottom mortgage rates and government aid is driving up housing prices around the world – with suburban homes and vacation towns outperforming big cities from Australia to Europe and North America.
In Canada, the average home price jumped 22.8% in January to a record C$621,525 ($490,820). A sharp escalation since November is fueling fears that speculation and so-called FOMO, the fear of missing out, have again taken root.
Graphic: Home price escalation in Canada https://graphics.reuters.com/CANADA-ECONOMY/HOUSING/nmovazeolpa/chart.png
Toronto and Vancouver area brokers say it is starting to feel like the height of the last bubble, when regional prices were rising by as much as 6% each month.
“It’s on steroids. It really reminds me of 2017,” said Nasma Ali, a Toronto agent who sold a home last month for C$1.59 million, C$340,000 over the asking price.
In other markets, like Ottawa and the cottage towns that have boomed as white-collar workers gamble they will not be called back to the office, the frenzy is like nothing agents have ever seen before.
“If you got in four months ago, you just made C$100,000,” said Ottawa agent Judy Corriveau of entry-level homes popular with investors.
“As far as investments go, it’s a lot better than the stock market … Unless you got in on GameStop,” she said, referring to a Reddit-darling stock that skyrocketed earlier this year.
Mortgage lending has hit record levels and riskier higher-ratio borrowers now make up 23% of new uninsured loans, more than in the 2017 bubble, according to National Bank of Canada. If the flight to smaller cities reverses, a surge of homes could flood the market.
“It seems like policymakers are blowing a pretty big bubble here,” said Steve Saretsky, a Vancouver agent and analyst. “You have house prices up 20% in the midst of really high unemployment. It’s certainly not a healthy market.”
While the Bank of Canada, like other central banks, is unlikely to raise interest rates just to cool housing, experts say policymakers could look at tax measures and tougher lending rules for investors, similar to those imposed by New Zealand’s central bank.
“A 40% equity downpayment for a rental purchase is a whole lot more of a stringent requirement than we have here. Those types of things are smart for our domestic regulators to be considering,” said Paul Taylor, chief executive of Mortgage Professionals Canada.
Taylor, who represents mortgage brokers and insurers, added that any policy should discourage investors while encouraging owner-occupants, particularly in lower-priced segments popular with first-time buyers.
Housing affordability advocates, meanwhile, are calling for tax changes to target investors and a rethink of an exemption that allows homeowners to pocket all profits from the sale of a primary residence.
But a senior government source said “now is not really the time to be ratcheting anything down,” pointing to the ongoing economic pressures.
Canada‘s residential real estate sector accounted for around 17% of GDP growth in the fourth quarter of 2020 and employment in the sector that includes real estate activity was 5.4% above pre-pandemic levels, with construction jobs up 3.4%.
Broker Corriveau in Ottawa said it is “heartbreaking” to see first-time buyers struggle.
“You don’t know if there is going to be that one person who has lost 10 bidding wars and now is going to bid C$50,000 more than necessary just because they want to be done with it.”
($1 = 1.2663 Canadian dollars)
(Reporting by Julie Gordon in Ottawa and Nichola Saminather in Toronto; Editing by Steve Scherer and Matthew Lewis)
The 10 Best Real Estate Marketing Companies of 2021 – GlobeNewswire
LOS ANGELES, March 07, 2021 (GLOBE NEWSWIRE) — In a growing & saturated market, it can be hard to find the best real estate marketing companies that can help you grow your brand, get more leads, and simply help you close more deals.
That is why we have selected The 10 Best Real Estate Marketing Companies of 2021.
We would like to thank the team at Authority Sharks for their research and findings in formulating this article.
Our first selection is Digitize Real Estate, a.k.a ‘DGR’. DGR is a real estate marketing company that teaches agents how to grow their business online. They teach agents and brokers how to generate their leads, follow up, nurture and convert. DGR also guides agents step-by-step on building a brand that will make them the ‘Go-To Celebrity Agent’ in their target market. Their company believes in teaching agents how to fish instead of fishing for them. “If the marketing company you pay thousands of dollars to every month ceased to exist the next day or decided to charge you double, you would be at the mercy of them. This makes you dependent, not independent,” says DGR’s CEO. Their track record speaks for itself as their students have followed their system to close 3-7 more deals every month on average.
DGR also teaches agents how to build systems and hire remote teams in-house to scale independently. If you are looking to save thousands of dollars every month and become the go-to agent in your area, book a call here.
Our second selection is BoldLeads, a real estate marketing leader primarily focused on exclusive lead generation. The Bold lead process is simple; you sign up, get onboarded with their team, and now you are ready to receive exclusive leads within your area, all sent to your custom CRM dashboard. Unlike our first selection, BoldLeads focuses on a ‘done for you’ marketing approach. BoldLeads is a relatively new entrant in real estate marketing, founded by a mother-daughter duo in 2014 and headquartered in Chandler, AZ. The company has snowballed, doubling in size in the past two years. The Propertybase company uses software that allows agents to automate their marketing efforts. BoldLeads focuses on buyer and seller leads. They do the follow-ups on behalf of the agent. If you are looking to outsource your lead generation with a full ‘done for you’ approach. Click here.
At selection three, we have Tieba Bropleh, Gunnar Kolrud, and Ali Kamel, the founders and owners of The Conversion Academy (TCA). These consultants help Real Estate entrepreneurs and teams implement systems and processes that separate them from the pack. By harnessing the power of publications such as Forbes, ABC, NBC, Entrepreneur, Yahoo Finance, and many more, they can instantly build their client’s authority and improve their positioning. Before working with the TCA team, most Real Estate entrepreneurs have relatively poor positioning for their service and are not viewed as the authority in their market. After working with the TCA team, Realtor Estate entrepreneurs are positioned to see 2-10x profitability in their marketing spend over a 6-12 month period from the time of publication. The Conversion Academy prides itself on being one of the few companies in their space that offers a 100 percent money-back guarantee.
At Selection four, we have Generateagentleads.com, a real estate technology and marketing company known to be one of the fastest-growing real estate technology startups in 2020. Through their proprietary CRM, they help real estate agents, teams and brokers generate and convert leads at scale in a complete “done for you” setting. Their software enables agents and brokers to qualify leads and build relationships from A to Z. Their goal: a centralized platform to generate new business at scale with the agent in charge of how much they spend on marketing. Their team recently launched a digital agent accelerator program to accompany agents, groups, and brokers to perfect their sales process in conjunction with the generateagentleads.com CRM. The program includes done-for-you lead generation with real estate coaching from experts within the industry, consulting on lead conversion while scaling up with a real estate team, and being extremely capital efficient.
At selection five, we have Jeffrey Brogger as the founder and CEO of STEEZY.Digital – a real estate digital marketing agency that is known for generating and following-up with leads automatically. Jeffrey has shared the stage as an international speaker with industry leaders, including Neil Patel, Damond John, Ryan Deiss, and more. Jeffrey takes the guess-work out of scaling a real estate or mortgage brokerage by handling all paid advertising so that high-quality buyer and seller leads are generated automatically every day. Meanwhile, automated recruiting funnels help attract top-tier talent to the brokerage. Jeffrey offers free online training, including a 12x return-on-ad-spend case study for a top 1% real estate broker client. Click here to register for this free training today. Feel free to call him at (619) 663-4357.
At selection six, we have Jayde Gorling as CEO and one of the Co-founders of From Cold to Sold™, a performance-based appointment generation system for Real Estate Agents. Jayde & her team specialize in setting highly qualified, high intent buyer and seller appointments or live transfers with real estate agents using their proprietary systems & data to attract & qualify prospects while nurturing them to give their realtor clients a brand and authority boost. From Cold To Sold™ has helped realtors close as many as 3 deals in their first 30 days of working with her team and has helped teams close over 60 deals in a single month. By working with the From Cold to Sold™ system, you can expect to only pay for qualified appointments & live transfers without having to sign long-term contracts or monthly retainers. This system is exactly what you need if you’re looking to quickly boost your pipeline with prospects that are actively looking to buy or sell their home and start expanding sales beyond your sphere.
Brett Ratkowksi, Karan Sanghavi, and Aaron Martinez are the co-founders of our seventh selection, Revamped Real Estate – an agency that helps Real Estate Agents and Brokers set themselves apart from their competition with the power of YouTube, using their 2 Step Blue Ocean Strategy. While they work with agents and brokers of varying experience and annual volume, they currently work with big names in the real estate space like Joshua Smith, Chantel Ray, and a few others. While most agents and brokers are still relying on Facebook, Zillow leads, and even just referrals… Brett, Karan, and Aaron are breaking the mold and paving the path for those who are ready to stand out, and start dominating their market, while setting new standards for what’s “normal” in terms of effective marketing, income, and work/life balance, as an active real estate agent or broker going into 2021. Book a call here.
At selection eight, we have a mother and son duo – Oliver and Julie Borr of Borr Digital – one of North America’s fastest-growing Real Estate marketing agencies. Borr Digital is young and hungry, with aspirations of becoming the most indispensable marketing agency/platform in Real Estate. They deliver the authenticity you’d appreciate from a boutique, family-run company, with the ROI you’d expect from the industry’s most respected agencies. They deliver “clients,” not “leads.” They hate the term “lead generation.” Their rigorously followed 8-step machine provides more revenue and time for growth-oriented Realtors by scaling their business through qualified appointments.
At selection nine, we have Christian John Orsos, the founder of CJO Marketing, a local marketing agency specializing in helping small businesses rapidly establish a full-fledged online presence. He and his team are committed to creating web and social media strategies for companies who want to go digital. The agency’s services include web design, logo design, and social media marketing. After working and delivering results in various verticals, Christian is dedicating 2021 to help real estate agents scale their businesses and close more deals. With his Real Estate Closings system, he guarantees 25 live transfers or appointments with potential pre-qualified home buyers in 90 days by implementing social media lead generation and a combination of automated and human follow up to prequalify potential buyers. If you’re a realtor looking to break the average barrier and dominate your area, Christian John Orsos is the guy.
At selection ten, we have Sunil Khatri as the founder of Meshroad Marketing and Saabu – an All-In-One Marketing Platform with DIY and Done for your delivery models. He has helped 500+ Businesses in 4+ Continents generate millions of dollars in sales. His company has ranked as the Top PPC Management Company in Canada for 2019 & 2020. Sunil enjoys working with brand-new businesses and helping them thrive in online sales. Sunil helps new businesses generate new clients in hours through his page “Get New Clients.” During the pandemic, he also founded a close Network of Business Experts on the west coast to help other business owners grow their businesses.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c1dc9bcd-d099-4742-9758-6bafeb135492
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