Well another Market Report was released from TRREB last week and many of you know, the market is still going strong. We are seeing Home Ownership as one of the main platforms in the upcoming Election. All the parties KNOW that real estate is a key driving factor in the economy and in some cases, we are pricing First Time Home Buyers out of the market.
We clearly see that the SALES are down compared to August 202 from 10,738 to 8,596 but mainly that is because of the lack of inventory. The listings are at their lowest level. Like anything, supply and demand is key. In this case, the demand is outperforming the supply and causing record sale prices. The average sale price was over $1,000,000 again in August. There seems to be no relief for buyers in sight. They are actually saying house prices could rise even higher with the anticipated immigration coming to Canada over the next two years. This again is concerning, mostly for buyers trying to get into the market.
I have the full report courtesy of TRREB here if you want to check out the various pockets and areas. These reports are filled with great information. The average price in Durham Region for all types of homes combined has hit $918,133.... with Pickering, Whitby, Uxbridge and Scugog going above the $1M mark.
We are still seeing lots of issues with tenants refusing to vacate properties so if you are purchasing a tenanted home, please understand that there is NO GUARANTEE you will receive vacant possession on closing regardless what your offer says. Tenants know their rights and right now with the Landlord Tenant Board so far behind with Covid, it could take months before you can get them out regardless of what they have agreed to.
If you are planning to list an investment property that is tenanted, I would highly recommend you obtain vacant possession before listing as I believe you will get way more traction than trying to sell it with tenants in it.
Durham Region is still seeing record high prices and most listings are holding offers. With the lack of inventory, it has become the norm. Pre-approvals are always a good thing to start with if you are considering buying a home, whether a first time buyer or an investment property. Know your "walk away" price. More often than naught, people get caught up in the process and offer well over what they originally decided on and then are scurrying to find alternative financing etc. All deposits are due within 24 hours of an accepted offer and now, in multiples, most deposits are 5% of the purchase price. Many agents are also attaching a copy of the Bank Draft to show their interest.
Liberals are promoting a "First-Home Savings Account" where money would go in tax-free and could be withdrawn without any taxes owing on investment gains. They also are committing to building 1.4 millions homes by 2025-26 and doubling the Home Buyer's Tax Credit.
Conservatives are planning to build 1 Million homes in the next 3 years, release 15% of federally owned real estate for housing as well as banning foreign investors not living in Canada and new arrivals from owning a home here for at least two years and remove the requirement to conduct a stress test when a homeowner renews their current mortgage.
NDP is promising an array of policies to bring down the cost of homes including a 20% foreign buyers tax on the sale of homes for individuals who are not Canadian Citizens or permanent residents and mobilizing under used Federal lands for non profit housing.
I am sure you guys can see - they are trying to solve the lack of inventory issue.. but at what cost. There is also chatter that they will tax your Principal Residence... but that still remains unclear .. there would be time limits if such a thing were to happen and for the most part I think they are trying to slow down "flipping" because as we have seen, many people have made quite a profit on the value of their home over the past 2 years...
So don't forget to vote - September 20th ... every vote matters... do your research and see which hpart offers the best platform for you and your family. Housing is sure to be a hot topic over the next two weeks.
I also have 3 listings coming out - two in Pickering ( a John Boddy detached home and a Semi in Bay Ridges) and a detached home in Ajax on a quiet court. So if you are thinking on listing your home, I would love to meet and chat. Inventory is still low.
Have a great September everyone and if you aren't already signed up to get "SOLD" listings in your area emailed to you, simply hit reply with your address and I will set you up. No obligation, no fee. I just need your email and your address.
Stay safe and reach out if you ever need any real estate advice or have a question. Also very pleased to have received the Top Rated Pickering Real Estate Agent from www.rank-my-agent.com. Thank you from the bottom of my heart to everyone who posted there.. I truly am blessed to do what I love.
Hugs to you all !