The slowing market drives the real estate agents to change their tactics, condo sales are still on the rise, Toronto becomes the North America’s fastest growing tech market, some GTA neighbourhoods are showing price growth and the evictions in Ontario are increasing. Take a peek at the latest real estate news in the Greater Toronto Area:
The Globe and Mail: Agents stay on their toes in changing Toronto real estate market
The market has slowed down and the buyers are afraid to purchase in case the prices are still going down and the sellers refuse to lower the prices. The single-family houses are selling slower, while condo sales and rentals are on the rise. Meanwhile, the real estate agents are caught in between, trying to adjust their tactics to the changing market.
Andre Kutyan, a real estate agent with Harvey Kalles Real Estate Ltd., still managed to spark some bidding wars by setting an attractive price and the date for reviewing the offers. This tactic, as he admits, frustrates some buyers but it prevents the house from staying on the market for too long. Davelle Morrison of Bosley Real Estate Ltd., on the contrary, advises the owners to take offers at any time. She also expects the increase of listings in the fall and encourages the sellers to list their properties in summertime instead.
The average condo cost reached $532,032, which represents a 28.1 per cent increase compared to the second quarter of the last year, according to a report from the TREB. What makes condos attractive is their relative affordability compared to the single-family units.
Due to increasing demand and scarce inventory, the condo market in most areas is still the seller’s market. Two-bedroom units are the most desirable among the condo properties so far, as the buyers expect to stay longer there. The condo rental market is also highly competitive. According to the recent data, the average one-bedroom condo rents for $1,861 a month and two-bedroom apartments – for $2,533.
The prices are still on the rise despite a general slowdown in some of the local markets in the GTA, a new RE/MAX report suggests. Brock, a suburban township north of Toronto, has an average detached home price of $562,711, representing a quarter-over-quarter increase of 11.7 per cent. The reason for the price increase in this area may be that the home buyers were priced out of Toronto market and looking for property in the suburbs.
The prices also climbed by around 6-7.5 per cent in the east-end district of Riverdale, Dovercourt-Wallace Emerson-Junction, Junction Area, High Park North, Runnymede-Bloor West Village and Lambton-Baby Point. The RE/MAX expects the sales to stay slow in summer before the return of stability to the GTA’s real estate market later on.
Toronto is North America’s fastest growing technology market, according to CBRE’s fifth annual Scoring Tech Talent Report. Toronto moved up six spots and scored the sixth out of 50 cities. The work that is done at the University of Toronto and the Vector Institute is attracting more and more interest in Toronto, as the city is becoming known as a world leader in artificial intelligence.
More and more tech companies are following the example of Google and moving closer to the Downtown core creating more demand in this area. This tech growth has been a major contributor to downtown Toronto’s office vacancy rate dropping to a record low of 3.8 per cent during the second quarter of 2017. The demand for office space from the tech sector has doubled during the past five years.
Data analysis conducted by BetterDwelling suggests that the number of landlords applying to have tenants evicted are on the rise. Applications for tenant eviction across Ontario saw a 1.76% increase from the same month last year. Most of the growth in applications are not for late or non-payments and they are concentrated in areas with fast rising rents.
If you’re a tenant, soaring prices are a pretty good motivator to get your payments in on time, so the late payments are not the problem. The reason for eviction can be anything from damaging the property to not-renewing leases. BetterDwelling suggests that these data could be a sign that some landlords are looking to cash in with higher paying tenants, since the rental market is heating up.