Press Release - Significant Upswing in Toronto’s Detached Housing Values

For immediate release

Intensification contributes to significant upswing in Toronto’s detached housing values

in the first six months of 2016, says RE/MAX Hallmark

Double-digit increases reported in close to 90 per cent of neighbourhoods

Toronto, ON (August 2, 2016) – Intensification within Toronto proper has served to further bolster price appreciation as builders and end users compete for a limited number of single-detached properties listed for sale, according to a report released today by RE/MAX Hallmark Realty Ltd.  The overall average price of a detached home in the 416 area code is up 16.4 per cent in the first six months of 2016 to $1,230,340, compared to $1,056,688 during the same period one year ago.

“Average price will continue to soar in conjunction with improvements in housing stock,” says Ken McLachlan, Broker-Owner, RE/MAX Hallmark.  “Teardown activity is rampant throughout Toronto and neighbouring Scarborough, as evidenced by the ever-increasing number of applications for zoning variances and lot severances.  Scarcity of land, further exacerbated by the greenbelt to the north, east and west of the city, has also prompted double-digit increases of detached homes in 90 per cent of neighbourhoods in the 416 area code to date, with almost 57 per cent now reporting average prices in excess of $1 million. ”

RE/MAX Hallmark examined average price appreciation in four separate Toronto Real Estate Board districts (East, West, Central, York Region) and 44 communities for the first six months of 2016.   Of the top five performing areas for detached homes in the 416 – in terms of price appreciation -- are all located in the central core.  Banbury, Don Mills, Parkwoods, Donalda, and Victoria Village (C13) led the city with a 36.4 per cent increase in the average price of a detached home, with values rising from $1,335,548 to $1,821,777.  Bayview Village, Bayview Woods-Steeles, Don Valley Village, Hillcrest Village, and Henry Farm (C15) ranked second with a 31.8 per cent upswing in the first six months of the year, with the price of an average detached home climbing to $1,649,510, up from $1,252,000 during the same period in 2015.  Lansing, Westgate, Willowdale West, and Newtonbrook West (C07) experienced an uptick of just over 29 per cent, with average price rising from $1,257,458 to $1,624,017.  The Bathurst Manor, Armour Heights communities (C06) rose 26.9 per cent year-to-date, with average price climbing from $1,010,711 to $1,282,135.  Rounding out the top five was Willowdale East (C14) with a 26.4 per cent increase in detached housing values ($1,596,358 to $2,018,060).

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“As pricing for detached housing south of Highway 401 escalates, buyers have set their sights on communities north of the 401 that offer up bungalows and smaller two-storey homes on good size lots at more affordable price points,” explains McLachlan. “However, fewer and fewer post-war homes are available within Toronto proper, given the move toward re-gentrification.”  

Detached housing values north of Steeles Ave. in York Region have spiked as a result of the ripple effect, according to McLachlan.  Both Aurora and King experienced strong upward pressure on prices (28.6 per cent and 27.7 per cent respectively) in the first six months of 2016, but so too have other communities including Georgina (26.2 per cent), Newmarket (25 per cent), Richmond Hill (24.7 per cent), and Markham (24.4 per cent). 

More than 7,000 detached homes changed hands in York Region between January 1 and June 30, an increase of almost 14 per cent over the 6,310 sales reported during the same period in 2015.  Limited inventory levels kept detached sales increases to half a percentage point in the central core (2,263 vs. 2,252), three per cent in the west end (2,130 vs. 2,068), and close to six per cent in the east (2,490 vs. 2,358), with the vast majority of gains occurring in Scarborough.

RE/MAX Hallmark Realty Ltd. is one of the largest real estate franchises in Ontario, with more than 1,100 sales associates operating out of 14 offices throughout the Greater Toronto Area, Ottawa, and the Muskoka Region. The team specializes in all aspects of real estate, including residential, recreational and commercial properties.  RE/MAX Hallmark is firmly entrenched in the communities it serves through its involvement in Children’s Miracle Network and grassroots fundraising initiatives. Visit the RE/MAX Hallmark website at: www.torontohomesandcondos.com

6 Things You May Not Know About RE/MAX Hallmark

The Connexus Group is proud to be with RE/MAX Hallmark. Stationed at the Bayview Village office we couldn't be happier with the service and support we get from our brokerage family. Here are 6 things you may not know about our brokerage. 

#1 Canada's Most Productive Agents

Condo Club Meeting

- Run by none other than Ravi Singh the Condo Club is held every Friday morning. With today's market consisting of 50% condos, 50% residential homes. It's important to know the ins and outs of condo buying/selling as it is quite different from buying a house. Every Friday more than 20 agents get together to share their listings, help each other find condos for their buyers and educate each other on many topics from pre-construction, assignments, clauses, by-laws and declarations and many more topics.

RE/MAX Hallmark University

- Learning doesn't stop after we get our license. RE/MAX Hallmark offers over 70 courses a year through our training centre off of York Mills in North York. Agents can learn from fundamental tools/strategies to getting motivated from globally known motivational speakers. 

10 Locations

- From West to East Toronto and up to Muskoka we have 10 locations with plans to expand into the GTA by 2020

We Are a Family

- Its been said many time before. We are truly a family. Each of us have been a part of other brokerages but RE/MAX Hallmark feels the most like a family. We don't just work together, we spend our down time together. Travelling, partying, dinners, galas, award shows and much more. 

Secret Facebook Networking Group

- We exchange exclusives, coming soon before anyone else can see, help each other with tough situations, support, exchange suppliers and much more.

6 Questions To Ask When Interviewing a Listing Agent

You should feel secure, comfortable and well-advised when choosing your listing agent. We've compiled the Top 6 Questions you should use at your next listing presentation. 

1. How are you different from other agents ?

This question reveals their tenacity and character. Many agents learn scripts and sound like robots. A top agent will sound unscripted and give you a feel of who they are as a person. This question brings out an agents personality. If you want to know why your nonna's pasta sauce always tastes the best , a question like this will reveal the secret ingredient. 

2. What do you bring to the table?

Hopefully by the end of the listing presentation you will know the answer to this question. These key strategies should be included in their presentation; a marketing plan (digital and print), negotiation, prep of your home and many other strategies. A difference between a Top Agent and just another agent is their branding and that key strategy that no other agent would have. Call us and we will reveal the secret to selling your house. It's all part of the "magic touch" we have. 

3. How will you get us the price we want?

Always, always, always have options when pricing. A Top Agent will know the market, know your neighbourhood and have tiered pricing strategies. There are so many agents nowadays that get into the industry without knowing basic math. You'll be able to know immediately. Do you own research before hand.

4. Supply 3 references.

Many sellers don't even think to do this. And we aren't talking about testimonials from their parents, cousins, aunties and siblings. Get the number of past clients and call them up. Ask them about the process, ask them what they liked most, what they thought the agent could of improved on and any downfalls they went though.

5. Type of volume of transactions

Has the agent you're interviewing sold a home like yours before? Have they sold in your neighbourhood or municipality? What's their volume of transactions in each category? If you are selling a co-op housing unit, you would need an agent who has high volume of transactions in co-op housing, etc.

6. What are your numbers?

Best for last. Their numbers. It is so easy to manipulate stats. And it seems many agents are #1 in the market, #1 in the neighborhood, #1 globally. With aestriks (*) that lead to tiny words that reveal the truth behind the stat. Be careful when asking about Days on Market (DOM) vs. Average Sale. These are the two most skewed numbers in the market. 

Like our brokerage's vision we believe in being guardians of the Real Estate Industry. Taken from RE/MAX Hallmark website, "We are extremely proud of our industry and take on the responsibility of helping to grow our industry in the heart and minds of our consumers. We expect and deliver professional service and care to everyone we are privileged to serve."

#theconnexusadvantage

Next Step After You Move In

Congratulations! We've found your new home together and you just moved in. Take a moment to let it all soak in. After opening up your #connexusadvantage welcome home package you're probably thinking of the million tasks on your to do list. For some, the honey to-do list. 

Unpack, measure, poke holes, drill, hammer, level, install, paint, clean, renovate -- design. Your interior design style is what brings everything all together. So forget about A-Z tasks and focus on how you would like your new home to look. We have a list of guys for the A-Z tasks. 

What kind of kitchen cabinets do you like; Wood vs. Glass vs. Sleek vs. Retro vs...

We've recently found this online interior design quiz that can help you find your style. The questions really help narrow down whether you're going to have fake flowers, branches and twigs or fresh flowers every 4-7 days. 

Sarah recently took it and got Contemporary for her design style. 

Have a little fun on this work Friday afternoon and pop over to the Houzz website and take the quiz. Let us know what you got! 

And remember, whatever your home need is we are here to help. After all, it's #theconnexusadvantage 

How to Win a Bidding War

Have you recently entered the real estate market and have been shocked with how many bidding wars and bully offers there are in the market place. 

Have any of these phrases stumped you:

• "Offer Date April 12th at 7 PM. Bring Best Offer."
• "No Pre-emptive offers being accepted"
• "Seller reserves the right to pre-emptive offers"
• "Bully Offer" 
• "There are now 24 offers registered on the property" 

Don't be surprised. With the high demand on detached homes and little supply almost every (or every other) property holds Offer Presentation Dates. What's that you ask? It's the schedule presentation time where agents go and present offers infront of the owners/listing agent. Usually a week after the property hits the market. 

We're here today to give you 8 Strategies on how to WIN your next bidding war. Warning: we won't be giving away all of our secrets, schedule a meeting with one of The Connexus Group members and we can help you through the process.  

1. Crunch Numbers

Before you even begin your purchasing journey, crunch some numbers. Call a mortgage advisor and find out how much you can really afford. Get pre-approved. Know your monthly budget. 

2. Timing is Everything

Bidding wars happen fast and there is plenty of opportunity to miss out on a home. Be prepared to move fast. When/if bully offers are accepted, put one in. Know the seasonal markets. This goes back to supply and demand. If you're a buyer you want to be on the edge. 

3. Be Flexible 

Offers in today's market are coming in firm. What does that mean? It means no conditions on financing, inspection or anything! Be open minded to moving up in price.

4. Deposit Herewith:

A good buyer's agent should be presenting your offer in person with a bank draft regarding deposit in any circumstance possible. No contract is completed without consideration and execution. Consideration in the form of a deposit can give you the competitive edge.

5. Write it Down 

Talk is cheap in today's market. No seller is going to wait on a "phantom offer". An offer is only as good as the paper it was written on.

6. Get Creative

You may be surprised as to how far a good story can go. If you can pull at some heart strings you may be able to win. Share your personal story; share your why, why would you like to live in their home. Personal touches leave lasting impressions. Toss in a photo of the family while you are at it. 

7. Know When to Walk Away

Not everything is worth fighting to the last beat. Know when too much is too much in today's market. Don't be that fool that over pays for undervalued property. 

8. Use The Connexus Group Agents. 

This one might seem a bit obvious...because hey let's admit it, you're here on our website. But we pride ourselves in our winning streak and it's solely based on three strategies that we've put into place. I'm not going to give away our secret. But know that these 3 strategies are solid and have been proven to win a bidding war. We will explain all the terminology and hold your hand every step of the way.

ReMax Hallmark Scholarship Fund

We are happy to announce that RE/MAX Hallmark is offering a Scholarship fund for the children of RE/MAX Hallmark’s past or present clients, who are applying for their first year of post-secondary education. 

If you require further information, or would like to obtain an application form, please contact Alicia at 416.494.7653 or via email at alicia@ravisingh.ca.  We would be happy to endorse your child in our Scholarship Program to help with their education

 At RE/MAX Hallmark, we feel strongly about contributing to the minds of tomorrow and investing in the future of our children.  

Best Regards, 

Ravi, Justin, Sarah and Alicia.
#theconnexusadvantage

My recent Experience with Assignment Condo Buyers

My Recent Experience with Assignment Condo Investors...

What you need when buying condos for the purpose of investment is quite simple. You need a looped in advisor who can skim all the fat away and get you a real deal. My current favourite deals are good assignments in good buildings with good floorplans.

Why?

Assignments are a glitch in the system. The near perfect exposure via MLS of resale listings allow for the absorption rate to be high and prices to be based on standard rules of supply and demand. There aren't "deals to be had" on MLS. If its priced too low, the market is efficient and the end price moves up. If its priced too high, it sits around until sellers become realistic and the end price moves down.

But what about assignments?

What if I could tell you that a desperate seller, who will have trouble closing his unit, is willing to take a hit on price and sell at a loss to walk away from his deal?

What if I could tell you that I know of a property that is not on MLS, and is being sold at 2012 prices in 2015?

What if I could tell you that a couple going through a divorce has split all assets except for a pre-construction condo that they are dying to off load?

These are all stories that are very true and very real.

Right now, I'm helping a great couple buy their first assignment condo. They are asking a lot of questions and I wanted to share this experience with you:

1. What is the current market value of this unit?

The current market value of this unit is $30,000 higher then what you will be paying. Because this property isn't registered it can't be sold through conventional means. The lack of exposure to the market is creating this downward pressure on sale price.

2. How much will it cost me monthly to carry this unit?

This is a 2 part answer. Until registration, the cost will be $1400. This is your occupancy fee. Post registration, your mortgage, maintenance and property tax will come up to $1547 based on the terms of the mortgage we discussed.

3. How much will I be able to rent this unit for?

Immediately upon closing the assignment, you will be able to rent this property for $1650. (Immediately based on the terms negotiated by your realtor.)

4. What will it cost to close this unit?

You will have to pay the following closing costs: Municipal Levies, Legal Fees, Land Transfer Tax and HST. The HST you pay will be given back to you in total. You will have to pay $20,000 in HST which you will receive back in approximately 4 months. Your other closing costs work out to roughly 4% of the purchase price.

5. How much money do I need to purchase this unit?

You need somewhere around 25% of the purchase price. That number is based on down payment plus closing costs. Part of your down payment will be paid to the seller (assignor). The rest of your down payment and your closing costs will be paid to the builder upon final registration.

6. Why should I buy this assignment and not invest my money in something else?

The buying opportunity is great here. Mainly because you are buying it below market value! You're building a great piece of equity right now. You're also walking through the unit and seeing it first hand. Your also able to negotiate heavily with a seller despite it being a sellers market. You also have the benefit of a TARION warranty. You also have the opportunity to be cash flow positive month to month. You're also buying a floorplan that is very good. You're also buying a coveted building that will outperform the market averages. The list goes on and on. But the main thing is your buying a unit that is worth the assignment price + $30,000.

7. What risks am I exposed to?

There is the chance of a prolonged occupancy period. There is also the standard risks with all investment properties including tenant issues and repair costs. In the long run though, you actually can not go wrong. You will make money. The key is holding power and long term thinking.

8. What would be next?

I have an agreement to Assign. We would submit this to the sellers representative and negotiate the hell out of this deal. Upon acceptance we would deliver funds and let lawyers close the assignment.

This couple is taking a leap of faith in my abilities, but all of my statements are based on strong research and real data. Do yourself a favour this up coming year... invest in real estate. You'll be thanking me! If this couple can do it, you can too.

And as always, if you want to talk real estate, we are happy to help!

I have 5 off market opportunities via assignments at some of the best buildings:

Thompson Residences

12 Degrees

King Charlotte

Casa

King + Condos

RS> TheConnexusAdvantage | downtownTOliving | EastGTAliving

New Down Payment Rules

The down payment rate was bound to change and that time is upon us. The days of 5% on a $1,000,000 home are behind us. Let's face it, we were running at high-risks with the old rates. The new down payment structure allows for more security for both buyers and sellers. Buyers won't feel overwhelmed with their mortgages and sellers will feel more secure in solidifying the deal. Not just that, but on the macro level, the market is further protected. The government of Canada wants Canadians to have equity in their homes and we couldn't agree more.

 So what does this mean to you? Let's break it down.

Any home with a purchase price of $500,000k or below can give a minimum of 5% for down payment. 

A home between $500,001 - $1,000,000 will pay 10% down on the amount over $500,000.  

The new rule doesn't affect properties over $1 million because they don't qualify for high-ratio mortgage insurance. They will need a 20% downpayment to qualify for a traditional mortgage. 

These infographics simplify the change...