Market Watch

May 2017,

Dear Friend,

Finally, a little respite in the frenzy of buying Toronto homes! A frenzy, I believe, created by the media, which were predicting prices would increase by over 30% in March. Really, a self-fulfilling prophesy! By the way, this is the same media that a few months back was speculating that Toronto prices were abnormally high, and the bubble was going to burst and prices would fall. My only comment; the media is primarily concerned about ratings and advertising income, so their news and headlines are biased to achieve their goals!

We started 2017 with extremely low home inventory, and an abundance of buyers. This continued the trend of multiple offers and led to an abnormally strong Toronto market! The media jumped on the band wagon and a difficult situation became even more so. The average price jumped 21% since the end of 2016, and some areas and properties increased by over 30% in the same time period.

Such huge price jumps could not be sustained forever, and as buyers took a pause, more listing started coming on the market, balancing the demand. On April 20, the government added a 15% tax on foreign buyers, (estimated to be 5%-8% of the GTA sales) which also made some buyers adopt a wait and see attitude as to how prices would be affected.

So here are the facts for April.

 

April 2016

April 2017

YTD April 2016

YTD April 2017

Properties Sold

12,016

11,630

34,623

36,822

New Listings

16,252

21,630

 

 

Average price

$739,762

$920,791

$697,679

$888,638

 

The basic factors have not changed in the GTA. Low interest rates, great economy, confidence, immigration and continued demand. This will continue to drive the market in 2017. Sellers who priced their homes at prices in excess of the market value will either take their houses off the market, or adjust the price to reflect the current market value. The media will make a fuss of someone reducing their house by $100,000 and still not selling. (Really to be expected if the house is priced at $1,300,000 and is only worth $1,000,000).

What we are experiencing at my company, RE/MAX Realtron, is that the number of messages, sign calls and appointments to view our listings remains strong, andbuyers now have more properties to look at before they decide to purchase. (We had 1,113 transactions in April) If you are considering buying, now is a great time, while some are waiting to see what happens. The additional inventory and lighter demand puts you in a better bargaining position than before.

Let’s talk, the situation is complicated. I’ll be happy to explain it all and show you how you could benefit from my experiencein the current circumstances!

Have a great May,

 

Your Friend in Real Estate.

PS. I’m never too busy for your referrals!

TREB Average Price 1970 - 2016

TREB 2016 vs 2015

 2016 Listings Sold vs History

 Why Choose Peter Kwan of RE/MAX Realtron When Selling Your Home?

Real Estate Professional Peter Kwan has been serving home Sellers and Buyers in Toronto since 1991. He is a consistent Top Producer and has earned many awards throughout his career, including #1 Chinese agent in Canada.

Backed by the power of the RE/MAX network, Peter uses a combination of traditional and high tech tools to market properties to the greatest number of potential buyers worldwide. His website features community and Real Estate information, as well as Listings.

Peter is fluent in English, Cantonese and Mandarin. His aggressive and unique marketing plan gives all his clients' homes extraordinary exposure. SOLD FAST, and gets TOP DOLLAR! His success has been due to personal approach and integrity * dedicated service to his clients and the industry.

Peter is tireless in his efforts to serve his clients. He understands the needs of a family. By exceeding the expectations of his clients, Peter has earned their referrals and repeat business. He has the skills, knowledge and experience to achieve your Real Estate Goals.

Why Peter Kwan? Because…He specialize in you!

 

 

Peter Sold 1 Home Ever 2-3 Days since 2006. Results Speak.

Most of Peter's listings sold record breaking over asking price were without ineffective open houses, staging & even no For Sale sign on the property. Peter is very happy and appreciated if the owner allow him to install an overasking sign after Sold.

Peter is so confident that if owner found any real estate agent sold more properties in Ontario than Peter Kwan within the past 26 years, Peter is willing to match their commission plus a free air ride with Peter Kwan (Pilot in Command) on his private airplane.

No Free Lunch! Peter invests close to $1 Million every year just to Advertise!

 
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