September was another strong month for Toronto’s real estate. Sales were up and so were the prices, pushed up by the very low inventory. Active listings were down by 36.6 per cent compared to September 2015.
The Toronto Real Estate Market has had yet another strong month but as the graphic above demonstrates, the problem is lack of listings. All levels of Government need to work together to open up some of the building codes and areas of unused land that could be developed for housing to buy or rent or geared to income.
Recently on Balliol Street which our office agents pass daily, we have watched as two new rental buildings were built on land that had been used as green space for the existing rental buildings. The density must have been allowed and over 200 new units are put into the marketplace.
Space exists where schools with school yards could be merged to provide more housing for purchase or rental. The population will keep increasing and we must come to grips with more density and better transportation in the next years. All three levels must work together on this situation and not try to solve the issue with more taxation and by closing the doors on foreign investment.
In this current market where there is a serious shortage of listings (supply) and lots of highly motivated buyers (demand), I am reminded of the famous adage from Warren Buffet – Buy when everyone else is selling (not now) and sell when everyone else is buying (NOW!).
That is, the biggest benefactors in this current marketplace are those that are selling. Prices are at an all time high and new mortgage lending rules will soon make it hard for buyers to qualify for mortgages (they will essentially qualify for less of a mortgage than they did before).
So, if ever there was a time to sell your home, this current period in time could not be better to maximize your value.
September 2016 Market Reports emphasizes lack of listings across all types of home from detached homes to condo townhouses across the GTA. There is obviously a strong demand from local buyers to foreign buyers and whilst we encourage our clients to sell in this market. One of our most important roles right now is managing our sellers expectations. Being knowledgeable, experienced and on pointe is critical given these market conditions.