Toronto Market Report July-August 2017

21 July 2017
Remax-Condos-Plus

June marked the third month in a row where sales declined from the previous month.


Toronto's Rocky Rental Market

13 July 2017
Remax-Condos-Plus

Most of our blogs deal with Real Estate sales. That's our primary business. Today I want to talk about the rental market. Currently for every sale, there are 1.5 rentals being done downtown market. While the market is 50% bigger, I feel sorry for tenants. They need to get used to multiple offers. Rent controls won't help, they will only make the market worse. Landlords will even be more selective when choosing tenants. It's not just your income, but your lifestyle that will be scrutinized as well. In a sale, the one that offers the highest price is usually the winner. With tenants, you can offer the highest rent and still not get selected. So if you think the market is tight now, it will get even tighter down the road. Less new construction of condos and fewer condo buyers who want to rent their units out.


Toronto's Changing Real Estate Market

06 July 2017
Remax-Condos-Plus

Everyone knows that our real estate market has changed, except for Buyers and Sellers. Sellers think the prices of March and April are still happening today, wrong. Buyers think that prices are still going to drop by another $100,000, wrong again! So, what happens when Buyers and Sellers can't agree on a price? No sales. In fact, in June Sales have dropped by over 50%. In most markets, prices drop until demand and supply, (Buyers and Sellers) come into line. That is what economists forecast in every market, but not real estate. Sellers are speaking by not lowering their price, but canceling their listing and saying that they will come back next year. Buyers can wait and hope for further price drops, or they have an opportunity without multiple offers, to negotiate hard for their preferred property, today. So, even today some properties will sit on the market for months ... Read More


Toronto Market Report June-July 2017

26 June 2017
Remax-Condos-Plus

he big or new story with this market is the shrinking sales numbers – lower sales have been recorded every month since March.


Should You Walk Away from a Real Estate Deal?

13 June 2017
Remax-Condos-Plus

With the sudden change in the market, some buyers who bought at the end of March and early April are thinking they might have paid too much. Should they just walk away from the deal and lose their deposits? Bad Idea! Walking away is the most expensive thing you can do. A Seller will then resell the property, probably for less money because you the Buyer will cover the losses. The Buyer will also pay for the extra legal fees, carrying costs of the property, extra costs for where the Seller is moving to, and so on. You get the picture, big bucks! Close now. We don't care what it costs you. The market will bounce back in September and prices will be back to March and April prices by this time next year. Remember, real estate is a long-term investment, think short-term and you can loose.


The Problem with 'Double Ending' Part Two

06 June 2017
Remax-Condos-Plus

Welcome to Part Two of Double Ending, or Dual Agency. In Part One we concluded that problems only arrive with Dual Agency when we have multiple offers on a property. This is a Toronto problem. In smaller communities all across Ontario, most top agents double end over 50% of their sales, without any problem. Banning Dual Agency is a bad idea. The solution, as I've said before is to change the act. Listen to me RECO, on all multiple offers, let all buyers and their agents see all offers. Right now, all we can disclose is how many offers and who the buyer agents are. Make everyone see all the offers. Right now, only the listing agents see them, and what an advantage that is if they have their own offer. That's where all the complaints come from too.


The Problem with 'Double Ending'

31 May 2017
Remax-Condos-Plus

'Double ending' seems to be a bad term in the real estate industry today. Do you know there is no legal term for 'double ending', but rather it is called Dual Agency? That occurs when both the buyer and the seller are given agency service and represented by the same agent. The problem is the agent is defined as the brokerage company, and not a salesperson. Consider a brokerage/company with 1000 sales people. If one salesperson represents a seller and a second sales person, in the same company, represents the buyer (he may not even know the second salesperson), you then have Dual Agency. Most people think that 'double ending' is the same salesperson working both ends of the same transaction. Funny, people only object when the same salesperson is involved on both sides when there are multiple offers.


Toronto Market Report May-June 2017

24 May 2017
Remax-Condos-Plus

We have delayed this Report to wait for mid-month May sale numbers from TREB.


The Real Story Behind Rent Controls in Ontario

18 May 2017
Remax-Condos-Plus

The Ontario Government has introduced new rent controls effective April 20th, expanding rent controls to include units built after 1991. So why the rush? A CBC reporter published a story on how her landlord had doubled her rent overnight from $1,600 to $3,200 per month and she was now forced to live on a friend's living room couch. Now I know you can rent a studio for just $1,600, so I contacted her to ask why the landlord would do that to her. There are only two reasons, 1. The Tenant isn't paying rent, or 2. The Landlord wants to sell the unit vacant. She said that she always paid her rent, but her landlord still wanted to sell. If you know anything about tenants, when a landlord wants to sell, they do two things to thwart the sale.


Underpricing Properties to Fuel Bidding Wars

04 May 2017
Remax-Condos-Plus

One of our biggest complaints is the list price set by real estate agents in today's market. We understand that given the rapid rise in real estate prices, properties can sell for $50,000 or $100,000 over the listing price, but some real estate agents have taken the practice to an extreme. It seems to be a badge of honor to go $300,000 or $500,000 over asking. These agents start by taking the market value of the property and then they list it at $200,000 or $300,000 below the market price. This attracts the attention of buyers who see the property as a great deal but then drives a bidding war frenzy. Underpricing a property does nothing for buyers and sellers. How would the same agent feel if they walked into a clothing store and saw a designer jacket for $99? They would jump on it!