In a few days TREB will release their market watch, here’s what we’re seeing as trends in anticipation of the report.
Toronto: 1 bedroom, 1 bathroom condos
Most Units Under $500,000 are listed well below their sale price
0 bedroom, 1 bathroom condos (Bachelors) are where 1 bedrooms used to be
What about January?
Wondering what the numbers mean and how those numbers would affect your home buying decision? Learn about these two simple examples below (>>>Click here to have your questions answered<<<).
1. C01: 1 bedroom, 1 bathroom condos
- C01, 1 bed, 1 bath condo average sold price in February 2018 = $551,205.00
- With 18% appreciation YOY, by years end, will cost $650,421.00
- Will this happen? It’s likely…
- 80% of buyers are getting help from parents
- Not enough housing supply available (not enough new condos being built)
- Mortgage rules and rates are making it harder for people to qualify, so many buyers are focused on buying condos
2. W06: 1 bedroom, 1 bathroom condos
- W06, 1 bed, 1 bath condo average sold price in February 2018 = $418,000.00
- With 22% appreciation YOY, by years end, will cost $509,960.00
- Will this happen? It’s likely…
- In 10 years the GTA is expected to grow by 1 million people (aka higher demand for housing)
- The red-tape and new rules around real estate development means it's taking longer for projects to get planned & started = slow supply of new homes, coupled with higher demand = more price increases
WHAT YOU need to know
- Almost all units listed in your price range will have an offer date, which means there will be a bidding war and will sell for significantly MORE than list price
- Only serious buyers will move ahead in this market, “on the fence” buyers, or those waiting for the market to crash, will be left on the sidelines and pushed out of the market to the outskirts of the GTA
- On other realtor sites they will send you listings for units that have already sold…which is why you will always see fewer listings from me. I’m only sending you listings that are still available, so we don’t waste your time, or give you false hope that the “too good to be true” unit is still available
What you can do
- Continue saving like crazy, condo prices are rising dramatically (your buying power goes down every month if you don’t)
- Have absolute clarity on your budget, know what you can afford, and what your maximum is, before you start shopping
- Consider where you can be flexible – if you considered a 2 bedroom condo, would a 1 + den work, if you want a 1 bedroom, would a bachelor work?
- Be open to lesser known areas (Lakeshore West, Lawrence & Dufferin, for example)
- Have your deposit ready in an account that you can access today
- Understand that buying your first place is your hardest purchase, being a move up buyer and having equity in your condo makes moving up much easier (this is another huge reason to avoid “sitting out the market”…you’ll have no equity built up, and everyone else will be able to move into bigger homes while you’ll still have a small condo budget
- Act FAST. When you see something you like, contact me asap
Need some help with your real estate planning? Got more questions?
We are here to help!
Send us an email or call 416-572-1016 to discuss.
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