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LACKIE: Choppy waters ahead for GTA real estate market – Toronto Sun

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For months it has felt like the ground was shifting beneath us and now it seems even the deniers among us are finally willing to say it out loud.

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One need only look to the wall-to-wall press coverage — the market has shifted! The bubble has burst! The end is nigh!

After two years of hot, hot, heat, declining month-over-month sales data now leaves it undeniable that our pandemic real estate boom has come to an abrupt conclusion.

Now it seems we find ourselves back in uncharted territory with enough at play that alarm is clearly warranted — ahem, a war in Europe, a stock market taking a beating, rampant inflation, an energy crisis, and interest rates on the rise — all the while having to reconcile what seem like clear warning signs with market forces and consumer behaviours that have consistently defied logic time and time again.

For all of the well-warranted doomsday predictions, there are still optimists who think the panic is overblown. And while it would be easy to label them oblivious denialists, or assume they’re just real estate agents or politicians with a vested interest in keeping things humming right along, it would be a mistake to jump to conclusions or even to simply assume that what lies ahead will be uniform or even.

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But what is actually happening?

If you’re in the central core of Toronto, not much.

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Sure, the buyer pool has shrunk, likely as a response to rising borrowing costs and uncertainty, but likely also market absorption following years of incredible volume and sales activity.

Fewer buyers and lessened competition is shaking out to mean sellers have lost some of their power and prices have stopped the meteoric rise. Underpricing with an offer night — once a sure-fire way to drive a bidding war and fetch top dollar — has increasingly revealed itself to be a gamble for sellers.

But make no mistake, good product is still moving and at a decent price, broadly speaking — though perhaps for less than sellers have come to expect.

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Out of the city it’s looking like another story entirely.

Some of the markets that surged the fastest in the early days of the pandemic are now in free fall with market data showing prices in strong decline.

There are examples all over social media of homes that have seen their values drop by hundreds of thousands of dollars in a matter of weeks leaving once-happy buyers left wondering what to do as closing approaches.

A real estate lawyer friend of mine is currently trying to help clients north of the city figure out how to close on their new home next month with their current home unable to sell for even close to the price it was valued at back in March when they bought.

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If they bail, they will forfeit their deposit and face almost certain litigation. But moving forward, best case scenario, will mean taking on costly bridge financing for a home that is already worth substantially less than what they paid.

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In the weeks ahead we can expect to hear more stories like this, and more stories of buyers approaching sellers asking for an adjustment to the already agreed-upon sale price in order to close on their deals.

And while once that would have been completely outrageous and inconceivable, I expect we will also see sellers who entertain such requests if only because agreeing to less money will avoid a failed closing and the lengthy litigation it will take to recoup those losses.

Besides, the expression “blood from a stone” comes to mind.

As May winds down, we should expect that there will be another rate hike announced following the June meeting of the Bank of Canada — rumour has it we will see another 25 or 50 basis points.

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And we should unfortunately expect more stories like the ones above — there are many who are going to feel the impacts of this market shift. I don’t even want to think about the preconstruction buyers who bought at the top of the market and are now on the hook for sale prices far above anything the bank will appraise.

But as infuriating as it may be to hear, an increasingly likely scenario is that what lies ahead will continue to be uneven — certain markets, housing types, and price points will reel while others will level off and carry right along.

Choppy waters lie ahead, no doubt. But as always, time will tell.

On Twitter: @brynnlackie

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Simplicity Changes the Real Estate Conveyancing Software Landscape in Ontario with Launch of Prolegis – Canada NewsWire

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‘Simplicity is incredibly pleased and excited to offer Ontario real estate lawyers and conveyancers a fresh new choice in a legal software provider. Collaborating with our valued customers and a network of trusted stakeholders, we are building a better, brighter future for real estate legal professionals and Canadian homebuyers. At Simplicity, we envision a future where innovative technology is at the forefront of enhancing the customer experience in the real estate ecosystem. We are committed to helping advance technology utilization and adoption within the real estate sector by providing solutions that are user-friendly, easy to implement, and economical to acquire and operate.’ said Neil N. Babiy, Co-Founder and CEO of Simplicity Global Solutions Ltd.  

About Prolegis Real Estate

Prolegis is a powerful, easy-to-use, cloud-based real estate conveyancing solution built for lawyers by lawyers. The solution integrates seamlessly with a real estate practice, providing a rich set of tools and information to help each user unlock exciting new levels of performance, customer engagement, and work-life balance.

Prolegis provides customers with exceptional value:

  • Thoughtfully designed to save time with all the capabilities and key third-party integrations needed to convey a real estate transaction efficiently and economically.
  • User flexibility to configure and organize work, communicate with clients, and manage the real estate transaction end-to-end from a single solution; anytime, anywhere.
  • An extensive library of precedent document templates, powerful document and workflow management tools, community databases, stakeholder portals, and real-time support.

Prolegis Real Estate raises the competitive bar with its unique set of Communication, Practice Management, and Document Preparation tools which enable quick, easy, and accurate processing of real estate transactions.

Ontario real estate lawyers and conveyancers can click here to Learn More about Prolegis and to Book a Demo. Simplicity has highly skilled Customer Success Specialists in place across Canada to welcome new customers.

Click here to view a Prolegis Product Teaser Video.

About Simplicity Global Solutions Ltd.

Simplicity Global Solutions Ltd. is a Canadian technology company offering innovative, secure, cloud-based solutions designed to inter-connect lawyers, real estate professionals, mortgage professionals, lenders, registry services, title insurers and the end consumer to offer quick, easy, accurate and secure sharing of information. Simplicity’s mission is to interconnect all real estate and lending stakeholders to enable the frictionless flow of information across the entire real estate and lending lifecycle to eliminate inefficiencies while improving productivity for consumers and industry participants.

Additional information can be found at www.prolegis.ca and www.simplicity.global

SOURCE Simplicity Global Solutions Ltd.

For further information: Media and investor contact: Neil N. Babiy, Co-Founder and CEO, Simplicity Global Solutions Ltd., [email protected], (587) 899 1147

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This Ontario city has the most overvalued real estate market in Canada – blogTO

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Good luck buying a home anywhere in Ontario right now, as meteoric price gains and a historic inflation spike push housing markets in the province further out of reach.

And as bad as things are in the Greater Toronto Area in 2022, rampant speculation is not limited to urban centres. According to one housing market assessment, Peterborough is now the single most overvalued housing market in the entire country.

Moody’s Analytics has ranked Peterborough, Ontario, at the top of the list for most overvalued housing markets in the company’s fourth-quarter assessment of housing price valuations in Canada.

Peterborough’s 107.8 per cent valuation comes after years of substantial price growth for the municipality northeast of Toronto.

Though with an average annual household income of about $70,000 and the average May 2022 selling price climbing nearly 19.8 per cent to $836,843, the city’s market is firmly on the unattainable side of the scale.

According to RE/MAX Canada’s analysis of the valuation, recent activity “has first-time homebuyers priced out of the market, especially local buyers,” adding that “too many prospective homebuyers are still stuck waiting to achieve the dream of home ownership.”

Experts attribute Peterborough’s valuation to factors like rampant investor speculation, blind bidding, and low interest rates.

Despite all the doom and gloom, home sales took a nosedive in the region in May, sales falling at an annualized rate of 34.3 per cent with a year-over-year decline of 18 per cent and a 17.7 per cent dip below the ten-year average.

Though May home prices leapt significantly in May, this downturn in demand could soon translate to decreasing value.

A spike in supply could further ease conditions, though Kate Kidd, President of the Peterborough and the Kawarthas Association of Realtors, says “it’s going to take more than a few months of stronger supply to have any meaningful impact on the market balance in the long term.”

After Peterborough, Canada’s second most overvalued housing market was also found not too far from Toronto, with St. Catharines-Niagara’s market valued at 106.9 per cent.

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This Week's Top Stories: Canadian Real Estate Slowdown Is Just Getting Started & “This Time Is Different” – Better Dwelling – Better Dwelling

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This Week’s Top Stories: Canadian Real Estate Slowdown Is Just Getting Started & “This Time Is Different” – Better Dwelling  Better Dwelling



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