I can always tell when a sellers' market is upon us. When a condo has just been put on the market, and that same day I'm lining up in the hallway with my clients, along with other agents and their clients, trying to get in to show the unit. Multiple offers, buyers bidding irrationally, and negotiations are becoming more infrequent. A tough market for buyers, but the sellers are now back in the game. Consumer confidence is back up, and it looks like it's going to be a busy Summer for me. Usually in the Summer, the market tends to cool a little, but it is showing no signs of slowing down, as we go into July. A very good sign of a healthy market.
Casey Ragan
TORONTO'S CONDO SPECIALIST
As stability returns to residential real estate markets across the country, buyers and sellers are breathing a sigh of relief. The carnage south of the border has failed to materialize in Canada and all indicators - economic and otherwise -- point to a housing market on the upswing.
Buyers who moved in the midst of uncertainty, ignoring warnings from doom and gloom forecasters, economists and naysayers, snapped up some of the best real estate deals this market has seen in years. By contrast, those who panicked and chose to sit it out on the sidelines are now facing rising interest rates and-in some markets-limited inventory levels.
With national resale housing market activity returning to pre-recession levels in May, it would seem that we've come through the worst of the financial meltdown, with the real estate correction nearing an end. The number of positive indicators is very encouraging. However, recovery is still underway, and there may still be some bumps along the road. Nevertheless, the buoyancy in the marketplace took economists by surprise. Just over half of all major markets reported an increase in unit sales in May over year-ago levels. Consumer confidence continues to strengthen across the board.
Casey Ragan
TORONTO'S CONDO SPECIALIST
The trend setting 10 year bond which is used as benchmark for long term fixed interest rates has been rising in the last few weeks.
It has moved to a tipping point which will cause fixed term interest rates to rise. This may come as soon as today.
We may be seeing 5 year fixed rates of 4.00% sooner than later, still a great rate but why not save a little money?
Two things to consider ;
1 - If you haven't purchased yet and are sitting on the fence, get pre-approved to secure a rate
2 - This maybe the best time to convert variable rate mortgages to a fixed rate; especially if the pricing is Prime PLUS.
Casey Ragan
TORONTO'S CONDO SPECIALIST
Properties are now selling under two weeks, some within two days, multiple offers, properties selling over asking. All signs leaning towards a sellers' market in Toronto. With sellers pricing their properties correctly, and a growing demand for properties under $500,000, the Toronto real estate market is really heating up.
In my opinion, we are no longer in a buyers' market. I would say the current market is balanced, but it is starting to shift in the sellers' favour. Obviously this has a lot to do with the neighbourhoods I sell in, but the Spring market is showing lots of activity across the board.
I would make the recommendation to all first time buyers, and those looking to trade-up, take advantage of current low interest rates, and properties that are priced to sell.
Casey Ragan
TORONTO'S CONDO SPECIALIST
I have been noticing a definite up-swing in the market. Listings are selling faster, and I'm evening seeing multiple offers.
This spring market has shown a drastic improvement from the end of 2008, and I believe might be shifting in the sellers' favour.
I believe a lot of has to do with the media reporting increased property values in the U.S., along with the American banks clearing some of their "toxic assets" of their balance sheets (credit card and mortgage loans that have gone into default). The DOW Index has shown a recent spike, along with an increase (3+%) in spending of large ticket items in American homes (i.e. appliances).
I believe President Obama has been doing a great job in reassuring the American people that the economy is turning around, and it is ok to spend and put money back into the economy.
I'm speaking so much about the U.S. economy, because so many Canadians watch CNN, and believe that the U.S. and Canadian economy is so tightly interwoven, even though I believe it isn't. Unfortunately, public perception is so important when it comes to consumer confidence. The media has a very strong, influential power when it comes to spending.
The real estate market here in Toronto is very healthy, and statistics will confirm this in April.
Casey Ragan
TORONTO'S CONDO SPECIALIST
TORONTO'S CONDO SPECIALIST
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