A lot of chatter about rate hikes in 2022, the narrative seems to change week to week, however let’s assume rates will not stay this low forever. The common and logical line of thinking is that when banks raise their prime rate homeowners with variable rate mortgages will see their monthly payments increase based on the increase in prime rate. What happens to the monthly payment varies on which...
For the past month articles like the one below have circulated blaming “Investors” for the increasing prices of homes in the GTA. This couldn’t be further from the truth, we are seeing a run up because people are capitalizing on pre approved mortgages with rates that were locked in prior to the recent increases. I had mentioned this three weeks ago and noted that it will likely have a...
Who is the builder? One of the first questions when evaluating buildings for a condo purchase. Builder reputation can ebb and flow, some have developed stellar reputations and command a brand premium for their buildings, old and new. Tridel being the prime example of the current gold standard. There are at least a dozen solid builders in the GTA, but there are just as many if not more that I...
Every time we break a new record it seems there is no more room to go up, and yet here we are again looking at increasing price trends. Data prepared by Ivan Gorbadei shows all 4 leading indicators pointing towards higher prices. Aside from condos in the core there is further tightening in inventory. Prices are up and inventory is down month over month, making it an opportune time for sellers...
Some personal thoughts on how to think about downtown as an investor based on personal experiences. The downtown core as per The Toronto Real Estate Board is split into 2 Municipalities: CO1 (South of Bloor, West of Yonge, East of Landsdowne) and C08 (East of Yonge). For this discussion I will only focus on C01, west of Yonge. The C01 Municipality has 9 communities, of the 9, there are 3 where the...
I recently took over a listing from another Realtor that had 9 showings over 60 days, it did not sell. Upon relisting the home and adjusting the buy side commission, 7 days later the property was sold. CBC Marketplace recently did an expose on how some real estate agents behave in relation to lower than expected commissions. This segment generated a lot of heated engagement, it highlighted...
One of the nice things about purchasing a condo unit is that they are relatively straight forward to value. Your standard downtown condo will have a couple of hundred units with sales occurring with regular frequency. Comparables are readily available and standard adjustments to finalize valuations are based on floor, layout, condition, status certificate, views, etc. In this post I will highlight two...
As records are being set across the GTA on every property type, the premium paid for renovated homes appears to be growing disproportionately. In the past, premiums for renovated homes allowed buyers to save on time, stress, and lack of knowledge as it pertains to managing a renovation. The increase to the renovation premium in 2021 factors in a price hedge. The same renovation that cost $150k in 2019...
I have a theory on how to effectively ‘lowball’ within the real estate market, mostly substantiated by my own successes and failures with prior transactions. This strategy is exclusive to ‘stale’ listings, homes that have sat on the market for a few weeks with little to no traffic. Almost always this is a function of a property being overpriced and the seller not having realistic expectations....
In my prior post I highlighted a listing that sold at substantial discount due to its heritage designation. These properties are widely misunderstood and, in many cases, undeservingly stigmatized. Oftentimes they trade at a discount because agents and buyers are unaware of the optionality and potential such listings have. As a result, over the last 5-6 years there has been a noticeable trend that has...