Are you thinking of selling your property?  I would love to meet and chat with you.  I have been in real estate over 20 years and treat each deal like they are your only client.  Your home is your largest asset. It is important to choose someone who you relate to and can reach.  It's not about ME.  It's about YOU !!!   This is where I separate from the others.   I don't boast my credentials.  I know my value and what I bring to the table as a Real Estate Professional. 

You will get professional photos, proper marketing and sharp negotiation on your behalf.  It's about the deal.  It's about getting you the most for your home and protecting your interests.  You will never think I am not on your side.

To find out more about my services, feel free to contact me directly on my cell at 416-300-3004 anytime.  Text, Email or call.  I would love to chat.  No oblgation.

#Pickering

October Market Watch courtesy of TRREB was released today.  We are seeing an increased number of listings and less sales due to the high interest rates.  Even though Bank of Canada did not increase Prime, we are seeing the adverse effect of these rates.  House prices are coming down in Durham Region and Open Houses are quieter. 

Many Seller's are seeing little to no activity on their listings ... unless they are pricing below market value and attempting a "bidding war" and even that is not working right now for many.

I did a quick look at the prices from February 2022 to October 2023 and we are down around 20% across many cities and towns.  Average Detached Home Price in Pickering went from $1.49M to $1.19M.   Vaughan went from $2.2M to $1.7M, Brampton went from $1.6 to $1.1 and Ajax went from $1.4 to $1.03M.... so it isn't just Pickering or Durham Region.  It is happening everywhere. 

Many homes are sitting longer due to the high influx of listings coming on the market and it is believe many more are coming.  We are also seeing a lot of assignments .. which are listings that aren't even built yet but people are trying to sell them before they have to close at these rates as they are afraid they won't qualify or the property is now worth less than what they paid for it at the builders office.

If you are in need of real estate advice, whether it is a pre-con, an Estate Sale or due to unforeseen family circumstances, divorce, job loss, etc., please don't hesitate to contact me.   Each call is confidential and I will do my best to give you the 'honest" truth about the market in your area and the recent sales if any.

The longer the property sits on the market, it then becomes stale.  Realtors® all have access to the same listings and days on market and cancellations.  If you are overpriced, they will use your listing to sell another one.  Be smart.  Work with someone who is working for your best interest.  I would love to chat and show you what I can do.

Please feel free to check out the article below but comparing prices and sales to last year is pointless.  They should be comparing it to last month to see the true picture.  Wouldnt' you agree?

Looking forward to assisting you in your next move.  Michelle

As the leaves begin to change, so has the market.  We are seeing a drop in sales in September and much of October.  If you are thinking on listing your property, I would recommend sooner rather than later.  The market is definitely cooling with the higher interest rates and stress test, it is making it increasingly difficult to get financing.

If you are thinking of buying, I would be happy to set you up with some reputable mortgage brokers that can assist you getting your approval in order so you can house hunt worry free.  If you are thinking on downsizing and not needing financing and would like a realistic home evaluation, please feel free to contact me and I would be happy to pop by and let you know my thoughts.

I have been in the business 20+ years and also have been a Director on the Toronto Regional Real Estate Board for  6 years.  I also am a Managing Partner at Royal Heritage Realty Ltd., with 6 offices and 325 agents that will be advertising and promoting your property.

As a Realtor, I pride myself on my honesty and integrity.  No games.  If you are looking for games, don't call me.  LOL..   No offense but I am straight shooter and it has served me very well over the years.

So that being said, please get professional advise whether buying or selling right now and know that there has been a definite shift in the market.  New listings were up 44% in September.  The more inventory, the more choice.  The more choice, the competition you have.  Prices are staying relatively flat but the sales are down 7% from last same time last year.

For more information on your specific neighborhood just reach out and I will be happy to send you further information relating to your specific neighbourhood.

The idea of getting a great deal on a power of sale house can be attractive to the right buyer, but there are many things that an informed buyer must be aware of if considering this type of purchase.  I know right now with the interest rates rising, many feel there will be more Bank Sales & Power of Sales coming on the market.  Here is what you need to know.

Choose the right agent  As a buyer, you always want your own representation to ensure that your interests are protected during negotiation, and especially if you are buying a bank sale or power of sale property.  The listing agent will be representing the interests of the seller (the lending institution selling the property) and many of the clauses and conditions that protect you in a “normal” transaction don’t apply in a power of sale transaction.  This is why it’s extremely important  to have your own agent who will be able to explain how the changes to the standard forms will affect you. 
Be prepared  Often when a deal comes up, you will have to move fast and might not have time to get a lawyer, mortgage pre-approval and insurance quote in place before you write up your offer.  If these issues have already been dealt with and arranged prior to submitting an offer, you will be able to proceed confidently.
Is it really a deal?  There are many factors that result in a house being sold below market value and they’re not always straight forward.  Here are some issues for bargain hunters to consider:
Condition – If a house has been occupied by people with no interest in it’s condition, it can be left in horrible disrepair.  The terms “fixer upper” or “needs tlc” are often used to market these types of properties.  For the right buyer, this can be an opportunity to fix it up themselves and save some money along the way.  What should be kept in mind, is that repair and renovation bills can add up quickly and what may seem like a “decorating challenge” episode can easily turn into “the money pit”!  Be realistic and objective.  If a house is being sold below market value because of poor condition, take a look in the neighbourhood and see what similar homes in good condition are selling for.  Why?  Because after you’ve put time, money and effort into repairing your new house – will it still end up being a good deal?
Here’s an example:
House A is being sold Power of Sale for $700,000 – your real estate agent has prepared a report of local comparable sales and you know that House B on the same street sold last month for $720,000 and it was in fantastic condition.  House A needs a new roof, appliances, landscaping, new flooring, paint & décor throughout and the kitchen and bathrooms need to be renovated.  You estimate that this work will cost you about $25,000.00 At the end of the day you will have paid $720,000 for a house that you could have bought and moved right into right away for $5,000.00 less!   
It’s easy to look at a low purchase price and think “Wow, what a deal!” but you must make sure that after all of the additional costs have been factored in, it’s still a good deal. 
Grow Houses – Marijuana grow houses being sold Power of Sale after a police bust are becoming a greater concern in our marketplace and they can affect a potential buyer in more ways that one.  Perhaps the greatest concern is health.  Grow houses are kept hot and moist like a greenhouse would be and this is the perfect breeding ground for mould, both visible (on walls and floors) and non-visible (behind walls and in ceilings).  Not only is mould unsightly and smelly, it is also a severe health hazard and in some cases, deadly.  Once a house has been infested with mould, it can be extremely difficult and costly to eliminate and in some cases, impossible.  No deal is worth the health of you and your family!
In addition to mould, the electrical supply, wiring and plumbing in grow homes has often been tampered with and can result in extensive repairs for the new owners.
Another consequence of purchasing a former grow home is disclosure.  Real estate agents are required by law to disclose in a listing any knowledge they have of a house having ever been used as a grow home.  This means that if you buy a former grow house and want to sell it 5 years down the road, you will be required to disclose this fact to all potential buyers, thus affecting the salability of your home and the soundness of your investment.   Having facilitated grow house transactions myself,  I can tell you that one thing neighbours never forget is which house was busted for what and when!  In the case of a grow home, in addition to buying a good deal, you may also be buying a stigma that will stay with your house for a very long time.   
No utilities – Normally, when you walk into a house for sale, you can turn on the lights and hear the furnace working – not always the case with a Power of Sale.  Consider the fact that you may be in a situation where you are placing an offer on a property before knowing if the heating & air conditioning works, the toilets flush and the wiring is functional!
Additional clauses – Almost all listings being sold under Power of Sale will have accompanying documents or “schedules” that will be attached to an offer.  Written into these schedules are often clauses that release the seller (the lending institution) from any warranties or representations regarding the property.  What does this mean?  It essentially means that after you move into the house, if the roof caves in, the basement leaks, and the appliances stop working you cannot hold the seller responsible.  Some common additional clauses are as follows:

• In the event that the Buyer requires vacant possession of the property and such vacant possession cannot be provided by the Completion Date, the Seller may, in it’s sole discretion, extent the Completion Date for any period(s) of time…
• The Purchaser shall purchase the property as it exists at the present time, on an “as is, where is” basis, without representation, warranty or condition with respect to the fitness, condition, zoning or lawful use of the Property.  The Vendor, or anyone on it’s behalf, makes no representations or warranty with respect to any defects in workmanship, state of repair, location of structures, walls, remaining walls or fences (free standing or otherwise).  The Vendor shall have no responsibility whatsoever to remedy any defect, infraction, encroachments by buildings or fences on the Property or adjoining properties or streets, comply with any outstanding Municipal, Provincial or Federal or other work orders, or complete any unfinished work.  The Purchaser acknowledges that he has relied entirely upon his own inspection and investigation with respect to quantity, quality and value of the property… 
• The Vendor shall not be required to furnish or produce any abstract, deed, declaration, or survey or other document or evidence of title except those in its possession…
• The Purchaser shall pay the Vendor on closing, the balance of the purchase price, subject to adjustment for the current years municipal taxes and the Vendor shall not be responsible for the payment of, and there shall be not adjustment for, development fees, lot levies, sewer charges or current water rates…
• Notwithstanding any other clauses in this Agreement, the Vendor has no knowledge and makes no representation whatsoever as to whether the Property has been insulated with urea formaldehyde foam insulation or any other type of asbestos insulation or whether the property contains any other substances, liquid gases or materials which may be hazardous or toxic…

 It can be a little scary to know all of the hazards and potential pitfalls of buying a home via Power of Sale, but this is all part of becoming a savvy and educated Buyer – while it’s exciting to focus on the advantages, it’s just as important to be aware of the disadvantages.  Despite all of this, the potential for finding a great deal is still certainly possible and with the right agent working with you, you can feel confident about jumping on that deal when it pops up!
If you have any questions, or would like to talk more about this issue or real estate in general, feel free to call me anytime @ 416-300-3004  or 905-831-2222 or email me at michelle.makos@rogers.com
 

Hi Everyone,

Just a quick update on the market.  So tomorrow Bank of Canada is expected to hike another .25 to .50 bps.  My guess is .50 bps.  If Bank raises its rate by 50 bps tomorrow, prime rates are expected to rise to 6.45 per cent and variable rates will be set about 5.7% and above.  We have seen our fair share of rate hikes in 2022. 

With those hikes, we are also see a dropping home in prices and in sales.  

Basically sales are down 49.4% from same time in 2021. Average days on market is 33.  Gone are the days where you listed on a Thursday and it was sold on Monday in MULTIPLES.   As you can see in the overview:

So I have made a few updates to just show you where the market has gone since the peak in February 2022 from Pickering, Clarington, Oshawa and Whitby.



Oshawa took the biggest hit in the beginning but now seems to be holding it's own. Oshawa had 108 detached home sales in November... probably because it is more affordable for most FTHB


Pickering had 39 Sales in the month of November. 39 That's it... for detached houses. Anything over $1M is now a struggle to move.





To some, these numbers may be shocking but it is just a direct result of the increases in rates over the course of this year with another one coming tomorrow.  

#Ajax had 48 detached homes sell in November for an Average Price of $1,067,719. That's lower than Pickering and Whitby. In February 2022 it had 95 sales and AV SP of $1,453,308. It is pretty much across Durham the same. Sales way down.

Buyers who want to buy, aren't buying IMO. They are seeing the market prices come down and the rates are going up, so even though it looks good, once they re-do their numbers at these higher rates, they are priced out of what they once qualified for. They all are scared to jump in.

Many people who are thinking on waiting until the Spring to list, may not find the market is better ... but I have no crystal ball.  

Many who bought in February, are probably in a house worth less than they paid.  As long as they can weather the storm, they will be ok.  This can't last forever but it does have the same feeling as 1990.  In that case, it took homes 10 to 12 years to rally back.   We are headed into uncharted waters here and NO ONE knows what the next 6 months will bring, so stay vigilant with your mortgage payments.  If you are on a variable mortgage, be careful.  Some of the variable rate mortgage payments are no longer even covering the interest, let alone any principal and when that happens, the bank will call.  This is called "Trigger Rate"... So far there are 17% of the variable rate mortgages reaching their trigger rates.  

Here is a 416 vs. 905 Chart for November



If you have any questions about selling or buying or are looking for a mortgage broker, I have a great bunch of Professionals that I work with across Ontario that can assist you.  In these times, you need to work with someone who will protect your best interests.  

This month is starting out quiet and December usually is, so after tomorrow's hike, I am hoping they take a break in January or at least only do another small one.  We are all getting hit financially ... groceries are up, gas, heating costs, hydro etc and all these added costs are put onto the consumer and homeowners.  Always stay up to date with your house value.  If you aren't set up to receive neighbourhood sales, let me know your address and I will set you up.  

On a side note, I am thrilled to be nominated in Community Votes 2022 for Pickering Realtor.  If you happen spare a moment - I would appreciate your support ... https://pickering.communityvotes.com/2022/08/services/real-estate-agents?fbclid=IwAR2CrS-hmo7aBFPtKplkL2ZE9CP8eF9R4lyRprLj-vCG2R0NlPeFLOfw8V0

Thanks everyone for all your messages and referrals.  Each one means something to me.  Wishing each and everyone of you a happy Holiday Season.  

And on a side note - thank you to everyone who showed up last night at Pickering Council - Vote was 7-0 against the developing the Greenbelt.  That's a positive way to end this email :)  

Chat soon.

Cheers,
Michelle
Keepin It Real in Real Estate
Enter Blog Post Here

 

Seeing as I didn't do an update in July, I wanted to jump on and give you a brief update of what the market is doing.  So in July we saw 47.4% decline in sales compared to the same month in 2021 and prices were 1.2% higher than the same time a year earlier.  The gains of the past year were wiped out with the the 3 Bank of Canada rate hikes.  So we are basically back to summer of 2021 prices.  Not necessarily a bad thing unless you bought in February of 2022.  

August saw very little change from July.  Av Sale Price for August was $1,079,500 vs. $1,074,754 in July.  What is changing is the mindset.  Earlier this year, Sellers were buying first and getting multiple offers on their properties when they went to list.  This is not happening anymore unless the property is listed well below market value.  

The plus side to this now is that Sellers are listing first without the pressure of having bought firm in multiple offers.  They are now selling and then going shopping for their next home.   Pickering in the month of August only had 45 detached home sale, Ajax had 71, Whitby had 98, Oshawa had 161 and Clarington had 112.  So homes are selling and obviously by the looks of this the further east you travel, the more sales.  Most of this has to do with affordability.  Pickering is more expensive to purchase in than Oshawa.  Hence, those who cannot afford Pickering prices, will travel further east to purchase.  

The biggest concern moving forward is another interest rate hike coming September 7th.  It is projected to be another .75 bps. to 1%.   This will  impact many buyers purchasing power if they are in need of financing.  If you are looking and haven't locked in a rate, I suggest you do so.  It may save you a few hundred dollars a month in payments.

I truly believe that the higher borrowing costs have impacted many purchasers decisions and they are waiting on the sidelines.  No one wants to catch a falling knife.  So to give you an example of average prices and what has happened since February 2022:



We are seeing it stabilize a bit now - but after this week, we will probably see another price correction.  But if you are buying and selling, it is a bit of a wash.  You are selling lower and buying lower as well.  If have an existing mortgage on your property, find out what the penalities are should you sell (if any) or if you can port the mortgage to your new property.

The average days on market is 34 right now and for many buyers, we are getting home inspections in our offers as well as conditions on financing (which was unheard of 5 months ago)... so all is not bad.  :)

If you would like to see the full Market Watch for August 2022 - https://www.slideshare.net/MichelleMakos/august-market-watch-2022

To read more about what is expected from Bank of Canada next week - https://www.reuters.com/article/canada-cenbank-idCAKBN2Q23SM

I am sure everyone is excited this is the last official weekend of summer and all the kids are going back to school ... it's an exciting time for everyone.  I just wanted to wish you all a wonderful September and to keep me in mind if you have any real estate questions or needs.  I am always a phone/text or email away - 416-300-3004

 

Well the numbers for April are about to be released and the sales are way down from the previous month. If you have been watching the listings you will notice that some are still selling over asking but many are not. Some are even relisting higher and taking offers any time. We are at a turning point. The interest rates at the Big 5 Banks are all over 4% now with a Bank of Canada prediction of another .5 to .75% bps.



That in turn will cause the banks to hike again. We are in for a rough ride over the next little while. Many Sellers are holding out for those January and February numbers and unless you have a very unique and over improved property, don't count on it. We are seeing deals that were done in the peak of the market, not closing now.





Some buyers were advised to buy first and bought when the market was at an all time high are now trying to sell their price and not seeing the same value that they thought they would get as little as 2 months ago. The appraisals on some are coming in low and buyers can't make up the difference. This is going to be big hiccup moving forward. No one wants to catch a falling knife.

I do not see the market picking up in the near future at all... if anything I think it slowing down and although it may be great for First Time Home Buyers (if they can get approved at these higher rates), it may also cause a lull as the payment on a $800,000 with a $200,000 down, not including property taxes, gas, inflation, groceries etc.... is well over $4,100.00/mo. So it will in turn effect home prices. Rates go up, prices will come down.

Then we have all these buyers that bought the past 1 year or more with no conditions. Buying a home in winter with no home inspection and now that the snow has melted and the Spring is in the air, they are seeing all kinds of faults in the property. Leaks, Damage, Mold, Imperfections that they maybe didn't notice in their 15 minute walk through/showing (eye roll).... yes, during the crazy times, we have 15 minute appointments for people to make decisions on the largest investment of their lives.

Sadly many of these purchases are now showing some buyers remorse and even more so when they are seeing properties sell for less or not selling at all and sitting when they paid considerably more. Sales Comparison More to support future interest rates hikes:
https://www.canadianmortgagetrends.com/2022/04/bank-of-canada-prepared-to-raise-interest-rates-forcefully-if-needed/   ( You should check these numbers out )


Then I see messages like this: If you are thinking on selling your home, be prepared for it not to sell in multiples over asking now. Those days are slowly disappearing and the days of houses being on the market longer and negotiating prices is more the norm now. Buyers are waiting to purchase... the only ones really buying right now are the ones that were pre-approved back when the rates were much lower and have it locked in for 90 to 120 days. After that, they need to reapply and their purchasing power will go down due to the higher rate. In any market, people will still have to buy and sell homes.

What I am saying is the market is definitely swinging away from a Sellers market. The April Market Watch is showing much of the same thing. GTA Home Prices Cooling from Hot Spring 2022 - HouseSigma Days on market have doubled, Prices and Sales down .. .the further out you go, the further the reductions are starting to happen. I think this is going to be a rough ride for a couple years until we get inflation and interest rates under control.

Right now this is just the early stages. If you are thinking on buying or selling, I would love to have a more personal conversation with you to let you know what your options are and how to market your property to best service your needs. If you are buying, timing right now is everything. Get a pre-approval done (I can send you to a broker who can assist you without leaving your home) and lock in the rates now because more hikes coming. June 1st we will probably see BoC raise another .50 to .75 bps. I hope this gives you a little insight to what we are seeing happening and if you need a sold price or set up for listings, just email and I will be happy to get you set up with what you need. Happy House Hunting and Happy May !!!

Cheers, Michelle
Your Sometimes Too Honest Real Estate Broker 

 

Well the January stats are out !!!  DURHAM REGION average home sale price in all areas is OVER $1 MILLION DOLLARS.   We are seeing multiple offers on EVERYTHING.  



First Time Home Buyers are struggling and there appears to be no end in sight just yet.  Just this week a townhouse in Oshawa had over 51 offers.  It was listed for $699,000 (inside unit) and sold for $1,171,900.... a TOWNHOUSE !!

They say "Drive Till You Qualify"  Well guess what - a home in Lindsay was listed for $599,000 (single family detached no garage on a 60 x 94 ft. lot and sold for $765,000 in multiple offers.  Lindsay.   I remember you buy a beautiful home for under $800 not that long ago.   

The Financial Post warns house prices could plunge 20% when "speculative fever" breaks.... but at this rate 20% will only take us back to maybe October 2021.  Read the Article Here .

If there were to be 20% correction in prices, most who are buying right now, would basically lose their equity.  To others who bought a year or more ago, they probably wouldn't care.   If you are buying and selling in the same timeline, it probably is a wash but I am hearing more and more people, selling and moving out of Ontario and their idea of home ownership feels unattainable right now and for others, they want to "cash out" and wait for some sort of correction.  Renting is another option but there are NO rentals out there either.  There is a complete LACK of inventory.  People need homes to live in - whether they are buying or renting and Ontario is having a housing crisis right now.

The Toronto Real Estate Board predicted an increase of 10.4% in house prices in 2021 and the ACTUAL was 28.0% higher.   That is for ONE YEAR.  

People say it will continue and speculators are taking out Home Equity Lines of Credit (HELOC) to buy investment properties, because the market can only go up, right ....??????  Well like anything, no one has a crystal ball.  This would be a life changing decision should the market turn.  People need to weigh all their options.  

Right now, I feel like we are playing a game of "hot potato" when buying houses and when the music stops, you better not be the one left holding the damn potato.  Sellers should take quick closing with very large deposits to protect their transaction.  The longer closing, the greater the risk if you ask me.

Everyone needs to do their due diligence.  People ask me all the time, what do I think the market will do?  I don't know.  I wish I did.  I don't have a crystal ball.  But I do feel like these prices can't go much higher.  

A semi in Barrie was listed for $799,000 and received multiple offers and sold for $990,000.  They only bought it in 2020 for $545,000.... not a bad return on investment.  This is happening all over Ontario.  Interest rates are all time lows.  Inflation is creeping higher and higher.  Just look at the price of gas and groceries.  Today Statistics Canada came out and said 200,000 jobs were lost in February.  You don't think this is going to have an adverse effect on our economy?????   

Restaurants have been closed for the better part of the last two years... all the financial aid in the world won't bring them back to what they have lost.  There are people struggling to survive and then we have those that are creating wealth in real estate.  We will end up with a two-tiered society.  Canadians deserve better.  Your children deserve to afford a roof over their head.  At these prices, good luck !!  

Wages and House Prices are not in sync anymore.  I'm passionate about this because I lived through it in 89/90 in my own personal life.  This may be a reminder for some who think prices will never come down - because they haven't really other than a few hiccups in 2017.... I feel a rumbling. 

When agents and mortgage brokers are selling their OWN homes and investment to get out while the going is good, says it all.  

And like I have said many times, if you have a home to sell, you are probably fine to pay these prices, because you will be selling in these prices too... and as you know you would have to buy first before you sell.  So you better have your house ready to go ... because you don't want to be caught if the government intervenes and you bought firm and haven't listed your home yet.....

They are saying we will have 3 maybe 4 interest rate hikes this year... we will see.  Some have said 7 .. I don't even think a .25 rate hike will do anything to slow this down.  The market is on fire !!!  

If you aren't receiving SOLD prices, you should... because the list prices are nothing compared to the SOLD prices.  There is a link or you can just email me back your street and I will set you up for the SOLD prices...

Well that's my morning rant ... :)   I just want people to know what is going on out there.  Homes listed for 1.2 are selling for 1.9 or higher in Pickering .. it's everywhere in Durham region as you can see from the image above.

Have a great day everyone and enjoy the weekend.  

If you need any honest advice or have any questions about the market and your options, I am call/email or text away !!

Cheers !

As we draw 2021 to an end, I want to thank all my faithful followers and clients who get my emails and listings and sent me messages about the market and their thoughts.  It truly is a privilege to work and get to know you all.   So I have  not been sending out monthly updates mainly because there is nothing really NEW happening.  The market has gone "WILD".  Just this week a semi in Pickering sold for over $1 million.  A Semi????  I am shaking my head in disbelief.  

How on earth do our young people get a home in sort of market?  Many have said they are on hold hoping something gives and they can jump into the market as the prices are now out of their reach.  Others are saving and trying to as much as they can to purchase their first home and then there are others who are using the equity built up in their home to purchase an investment property.  The interest rates remain at an all time low but we have heard from Bank of Canada that 2022 there will be rate increases by the first quarter.  

Generally January and February are slower (especially in Snow Countries) because of weather but I don't think this will be the case this year.  Nothing is stopping this ... not even Covid.  We have had record prices and each moth is going higher than the month before.   It seems real estate is fuelling the economy right now and the government is not going to stop it any time soon.

They are talking about a First Time Buyers Saving Account ... which I am sure we will hear more about in the future and also the banning of blind bidding.  I have had mixed feelings about the last one.  I cannot tell you how many times once a property is sold, the losing parties say, "I would have paid more than that if I knew"... so  will it curb prices, I highly doubt it.  I think they need to do something.  At this rate, when this corrects (and it will correct) there will be a lot of collateral damage.  Especially to the person who gets caught paying top price when the market slows or corrects.  Even 10% when you are paying $1M is $100,000 and that is A LOT of money to people that is buying for the first time.

We are in a wild 2022 if you ask me.  Everything is unknown at this point but I would guess the housing market will probably continue rising into April 2022 at least... I remember April 2017 when they brought in the Foreign Buyers Tax, then the market took a hit but nothing like what we are about to experience.  

How are these homes appraising for these crazy prices?  Insured Mortgages or HUGE downpayments (and in some cases money from parents and grandparents).   As long as you can weather the storms and wait it out if it does drop, you will be fine but if you can't, that is when you will see big problems.

But for now, "multiple offers" continue.  Bully offers are probably your best shot if the Seller will entertain them but even that, has to be high and firm and appealing enough to make the Seller want to take it and not entertain the "bidding wars" that are happening.

If you are thinking of selling, my first question is, "where are you going to go?"   If you have a plan, ie. cottage, investment property, rent etc.  that's great.  But if you don't, then you will get caught up in this on the buying side.  Trust me it isn't fun.  Many buyers are so fed up ... multiple offers, multiple tries and now just feel like they are chasing the market  because every month the prices are escalating higher and higher with the next house achieving record prices for the street.

To view the entire Market Watch Report as of the end of November 2021:  https://www.slideshare.net/MichelleMakos/november-2021-market-watch

It is a Sellers Market and the inventory in Durham Region is extremely low.  List prices mean nothing.  You can check SOLD prices of properties through my site at https://solds.househunting-durham.com and enter the address, city etc. and view them anytime from  your phone or computer.  

On that note, I am around over the holiday season and my  phone is always with me.  If you need anything or have any real estate questions, feel free to call or text my cell 416-300-3004 directly and I would be happy to answer or assist.

I want to personally wish you all a very Happy Holiday season, enjoy your loved ones while you can and I wish everyone the best of health, happiness and prosperity in 2022.  It takes a Village they say and you are a part of mine.   

Be Safe, Stay Healthy
Cheers,
Michelle 

PS. Most of my business comes from your kind referrals.  They are most appreciated as always.  I promise to work as hard for them as I would for you.  Be Well ! 


 

Well another Market Report was released from TRREB last week and many of you know, the market is still going strong.  We are seeing Home Ownership as one of the main platforms in the upcoming Election.  All the parties KNOW that real estate is a key driving factor in the economy and in some cases, we are pricing First Time Home Buyers out of the market.

We clearly see that the SALES are down compared to August 202 from 10,738 to 8,596 but mainly that is because of the lack of inventory.  The listings are at their lowest level.   Like anything, supply and demand is key.  In this case, the demand is outperforming the supply and causing record sale prices.  The average sale price was over $1,000,000 again in August.  There seems to be no relief for buyers in sight.  They are actually saying house prices could rise even higher with the anticipated immigration coming to Canada over the next two years.  This again is concerning, mostly for buyers trying to get into the market.

I have the full report courtesy of TRREB here if you want to check out the various pockets and areas.  These reports are filled with great information.   The average price in Durham Region for all types of homes combined has hit $918,133.... with Pickering, Whitby, Uxbridge and Scugog going above the $1M mark.

We are still seeing lots of issues with tenants refusing to vacate properties so if you are purchasing a tenanted home, please understand that there is NO GUARANTEE you will receive vacant possession on closing regardless what your offer says.  Tenants know their rights and right now with the Landlord Tenant Board so far behind with Covid, it could take months before you can get them out regardless of what they have agreed to.

If you are planning to list an investment property that is tenanted, I would highly recommend you obtain vacant possession before listing as I believe you will get way more traction than trying to sell it with tenants in it.

Durham Region is still seeing record high prices and most listings are holding offers.  With the lack of inventory, it has become the norm.  Pre-approvals are always a good thing to start with if you are considering buying a home, whether a first time buyer or an investment property.  Know your "walk away" price.  More often than naught, people get caught up in the process and offer well over what they originally decided on and then are scurrying to find alternative financing etc.   All deposits are due within 24 hours of an accepted offer and now, in multiples, most deposits are 5% of the purchase price.  Many agents are also attaching a copy of the Bank Draft to show their interest.

Liberals are promoting a "First-Home Savings Account" where money would go in tax-free and could be withdrawn without any taxes owing on investment gains.  They also are committing to building 1.4 millions homes by 2025-26 and doubling the Home Buyer's Tax Credit.

Conservatives are planning to build 1 Million homes in the next 3 years, release 15% of federally owned real estate for housing as well as banning foreign investors not living in Canada and new arrivals from owning a home here for at least two years and remove the requirement to conduct a stress test when a homeowner renews their current mortgage.

NDP is promising an array of policies to bring down the cost of homes including a 20% foreign buyers tax on the sale of homes for individuals who are not Canadian Citizens or permanent residents and mobilizing under used Federal lands for non profit housing.

I am sure you guys can see - they are trying to solve the lack of inventory issue.. but at what cost.  There is also chatter that they will tax your Principal Residence... but that still remains unclear .. there would be time limits if such a thing were to happen and for the most part I think they are trying to slow down "flipping" because as we have seen, many people have made quite a profit on the value of their home over the past 2 years... 

So don't forget to vote - September 20th ... every vote matters... do your research and see which hpart offers the best platform for you and your family.  Housing is sure to be a hot topic over the next two weeks.

I also have 3 listings coming out - two in Pickering ( a John Boddy detached home and a Semi in Bay Ridges) and a detached home in Ajax on a quiet court.  So if you are thinking on listing your home, I would love to meet and chat.  Inventory is still low.

Have a great September everyone and if you aren't already signed up to get "SOLD" listings in your area emailed to you, simply hit reply with your address and I will set you up.  No obligation, no fee.  I just need your email and your address.  

Stay safe and reach out if you ever need any real estate advice or have a question.  Also very pleased to have received the Top Rated Pickering Real Estate Agent from www.rank-my-agent.com.  Thank you from the bottom of my heart to everyone who posted there..  I truly am blessed to do what I love.

Hugs to you all !
Michelle