Is The Toronto Housing Market Shifting?

The number of headlines and proclamations that the Toronto Housing Market ‘Bubble’ is about to burst has increased over the last few weeks. So, let me clarify things for you…no one knows exactly what is going to happen in the future. This is all either speculation or reference to specific pieces of data that has been obtained of what has already happened. Anecdotal examples of what is happening is often contradictory. Quantitative data is poorly collected, incomplete, or unreliable.

Headlines this last week proclaimed that there is a flood of listings on the market. Among them:

Daniel Tencer wrote “Whoa: Toronto Housing Market Actually Softens As New Listings Soar” …HuffPost Canada (May 3, 2017)

Carolyn Ireland wrote “Toronto market turned on its head as flood of listings overwhelms buyers” …Globe and Mail (May 18, 2017)

Tess Kalinowski wrote “Toronto sees April home prices grow as listings soar”…Toronto Star (May 15, 2017)

Daniel Tencer wrote “4 Signs Toronto’s Housing Bubble Has Started To Deflate“…HuffPost Canada (May 15, 2017), in which he points out:

1. Sales are down
2. New home listings have soared
3. Buyers are hesitating
4. There’s been a spike in searches for “housing bubble”

Then this morning the Globe and Mail published ‘Flood of Toronto listings not all that it seems’  by Carolyn Ireland. In the article, Ireland focuses on how the TREB is reporting the same house as listed two or three times. Some sellers are taking their house off the market and relisting the following week if they don’t get the price they expect. She refers to quotes from some realtors that suggest this is throwing the statistics ‘out of whack’.

However, they’re missing the key point here. The fact that sellers have expectation above the market, which are not being met, in and of itself indicates that there is a shift happening in the market. The question in my mind is whether this is a temporal occurrence or is it the beginning of a more significant long-term term and systemic shift. I also question which housing styles and neighbourhoods this is happening, as I’m pretty sure it won’t be consistent in magnitude throughout Toronto.

Jane McFarland wrote “Canada at risk of housing correction, Moody’s warns“…The Globe and Mail (April 11, 2017). In the article, McFarland writes “The Moody’s report likens real estate price increases in Canada and the other three countries to the gains seen in the United States, Spain and Ireland in the years leading up to their housing peaks in the mid-2000s, prior to major market corrections.” However, the article does downplay the magnitude of a possible correction and its impact on the Canadian economy.

From my personal experience this feels a lot like the Toronto real estate situation in the late 1980’s. The headlines are similar, the sharp appreciation in house prices in the last days are similar, the contradicting arguments among economists, realtors and bankers. The difference is that now the proponents of continued appreciation are pointing to heaving migration and foreign investors as opposed to local speculators. Regardless, whatever is motivating these demand sources can also change and deter them.

The bottom line is that no one has the complete picture, no one can predict specifically when there will be a ‘correction’  and it is more important to some homeowners than others. If you’re in your 30’s and buying your first home, then I wouldn’t be too concerned about cycles in the real estate market. In the end, given that land is a limited resources (they’re not making any more of it and we’re unlikely to colonize other planets any  time soon) and the population keeps growing, real estate should continue to outpace inflation and other long-term investment performance.

However, if you are speculating, then consider it a form of gambling which can result in short-term losses. These losses could translate into long-term losses if you don’t have the cash flow to keep up with financial commitments associated with the property and you are forced to sell the investment. So, be careful what type of real estate you buy, where it is located, and how you finance it.

If you’re looking to downsize anytime over the next 5 years, you might want to consider making the move sooner rather than later. If there is a correction, you could feel the pain of the extra $100,000, $200,000, $300,000, $400,000 or even more that you could have gotten for your home. I can give you a pretty good indication of what your house will sell for in this market. It gets difficult to predict what it’ll sell for next year. The best way for me to get this point across is by stating that I can safely say that there is about a 99% chance that your home will sell for between 40% and 150% of its present market value within the next year.

Call me for a market assessment of your home – Baldo Minaudo, M.B.A., Broker: 416-564-0245.

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Originally published by Baldo Minaudo on BaldoMinaudo.com, Baldo Minaudo, M.B.A. is a Real Estate Broker located out of Toronto serving local and international clients. He may be reached through is office 416-698-2090 or through his website.

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Roger Moore Death Announcement from Family

Sir Roger Moore has died after a short battle with cancer. His family used his twitter account just two hours ago to announce his death. We at MetroActive will miss his guidance and inspiration.

Sir Roger Moore

Sir Roger Moore

SIR ROGER MOORE KBE

Actor – Unicef Ambassador – Author

It is with a heavy heart that we must announce our loving father, Sir Roger Moore, has passed away today in Switzerland after a short but brave battle with cancer. The love with which he was surrounded in his final days was so great it cannot be quantified in words alone.

We know our own love and admiration will be magnified many times over, across the world, by people who knew him for his films, his television shows and his passionate work for UNICEF which he considered to be his greatest achievement.

The affection our father felt whenever he walked on to a stage or in front of a camera buoyed him hugely and kept him busy working into his 90th year, through his last appearance in November 2016 on stage at London’s Royal Festival Hall. The capacity crowd cheered him on and off stage, shaking the very foundations of the building just a short distance from where he was born.

Thank you Pops for being you, and for being so very special to so many people.

Our thoughts must now turn to supporting Kristina at this difficult time, and in accordance with our father’s wishes there will be a private funeral in Monaco.

Deborah, Geoffrey and Christian

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Spotlight interview: Jim Pagiamtzis sharing journey on Networking and Speaking

Check out this short interview with Tonya Hofmann CEO of the Public Speakers Association as Jim Pagiamtzis sharing insights on journey of Networking and Speaking. Watch until the end to hear some hilarious stories.

Posted in Fun, Jim Pagiamtzis, Member Spotlight, Networking, News, Practical Tips, Relationships, Toronto | Tagged , , , , | Leave a comment

96 Bartlett Ave in Dovercourt Park Toronto For Sale

96 Bartlett Ave in Dovercourt Park Neighbourhood of Toronto Listed For Sale at $1,189,900

There Is So Much To See! Simply Stunning! Located On A Quiet Tree Lined Street, This Fully Renovated Home Is Exactly What You’ve Been Looking For! Open Concept Living, 3 Bright & Spacious Bedrooms & 3 Beautifully Updated Baths. Hardwood Floors, Crown Moulding, California Shutters, Pot Lights Through Out & So Much More. Separate Entrance To Fully Finished Basement. Come And See For Yourself!

Some Details

  • Price: $1,189,900
  • Property Type: Freehold
  • Bedrooms: 3+1
  • Bathrooms: 3
  • Exterior: Stone
  • Living Style: 2-Storey
  • Heating: Forced Air Gas
  • Water: Municipal
  • Pool: None

Additional Details & Information or call me direct at 416-564-0245

Map data ©2017 Google

The above information is deemed reliable, but is not guaranteed. It is the buyer’s sole responsibility to verify all information and details. Search facilities other than by a consumer seeking to purchase or lease real estate, is prohibited. Not intended to solicit clients under contract with a brokerage.

Brokered By: Real Estate Homeward, Brokerage, Brokerage

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Originally published by Baldo Minaudo on BaldoMinaudo.com, Baldo Minaudo, M.B.A. is a Real Estate Broker located out of Toronto serving local and international clients. He may be reached through is office 416-698-2090 or through his website.

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Custom Backyard Club House

Custom-built Children's Wooden ClubhouseCustom-built Children’s Wooden Clubhouse – if interested baldo@baldominaudo.com

This wooden, custom-built children’s clubhouse located in the sought after neighbourhood of Agincourt in Toronto is one of a kind. It was designed and built in an afternoon by the father of three children, who also happens to own a cabinetry manufacturing company in Toronto.  Though his intention was to trim it and add a shingled room, his wife discouraged any changes as she liked the rustic character.

The clubhouse grabs your attention as you enter the yard. Children immediately run to it and find it a great play space for role playing and pretend parties.

Backyard Club Houses, Tree Houses, Sheds and other structures are great ways to improve your home lifestyle. Some of these structures, depending on their design and benefits can add some noticeable value to a property. A unique structure like this appeals to parents wanting to give their children something special.

Beyond the clubhouse itself, its character provides a reference point by which the rest of the yard can be laid out, decorated and landscaped.

If you’re interested in this type of clubhouse, email me at baldo@baldominaudo.com.

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Originally published by Baldo Minaudo on BaldoMinaudo.com, Baldo Minaudo, M.B.A. is a Real Estate Broker located out of Toronto serving local and international clients. He may be reached through is office 416-698-2090 or through his website.

Posted in Baldo Minaudo, Real Estate | Leave a comment