Tuesday, January 17, 2012

When is the Best Time to Sell your Home?


Click on video for Jonathan's opinion on what you should consider when deciding when the best time is to sell your home.

Click below for a look at an informative article also:

http://www.propertywire.ca/component/content/article/101-top-tips/1579-best-time-of-year-to-sell-a-house.html

Friday, January 6, 2012

December Market, 2011 as a whole, 2012 Forecast


Second-Best Year on Record for Sales
Toronto, January 6, 2012

Greater Toronto REALTORS® reported 4,718 transactions through the TorontoMLS® system in December 2011. The December result capped off the second-best year on record under the current Toronto Real Estate Board (TREB) boundaries. Total sales for 2011 amounted to 89,347 – up four per cent in comparison to 2010.

“Low borrowing costs kept Buyers confident in their ability to comfortably cover their mortgage payments along with other major housing costs,” said TREB President Richard Silver. “If Buyers had not been constrained by a shortage of listings over the past 12 months, we would have been flirting with a new sales record in the Greater Toronto Area,” added Silver.

The average selling price in December was $451,436 – up four per cent compared to December 2010. For all of 2011, the average selling price was $465,412, an increase of eight per cent in comparison to the average of $431,276 in 2010.

“Months of inventory remained below the pre-recession norm in 2011. Very tight market conditions meant substantial competition between Buyers and strong upward pressure on selling prices,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“TREB’s baseline forecast for 2012 is for an average price of $485,000, representing a more moderate four per cent annual rate of price growth. This baseline view is subject to a heightened degree of risk given the uncertain global economic outlook,” continued Mercer.













Jonathan’s Opinion

The following is my 2011 forecast that I wrote last year at this time:

“Because of the market volatility that took place this year, it is difficult to forecast how the market performance in 2011 will be. However, I believe that if interest rates continue to stay low, prices will not correct as they should. I believe we will have a market where there still will be more buyers than sellers, but as interest rates increase (which they will), this ratio will be more balanced. I also think that multiple offers will be very limited. 2011 will undoubtedly be an interesting year!”


The following is what actually happened:

I was right, and wrong (being wrong, however, was not under my control). I said that if interest rates do not increase, then prices will not correct, as they should. That is exactly what happened…interest rates stayed low for all of 2011, and the prices did not correct, or even stabilize…they increased by 8%.

I was wrong when I mentioned that interest rates would go up. I was confident that they would because the Bank of Canada said that they would, more than once. However, because of the volatility of the world markets (particularly the US and Europe), the Bank of Canada did not feel comfortable raising rates. This resulted in more buyers than sellers, more demand than supply, and subsequently, a large increase in prices.


The following is what I forecast for 2012:

I believe that there will be continued fear and volatility in the markets because of the ongoing unrest in Europe and the United States. However I also believe that Canadian interest rates will not be raised this year which will lead to continued demand for real estate. It will be another Seller’s market (high prices) as there will be more buyers than sellers (due to the continued affordable rates).

I don’t think that prices will jump by another 8%, but I do not see them correcting at all. They may stabilize or even increase somewhat.

All this if interest rates remain low and unemployment remains sustainable.

We are in for another interesting year, nonetheless!