May Toronto Real Estate News

You may have seen the news, it's been all over the media!  The housing market across the GTA is adjusting to higher borrowing costs, with the number of transactions down on a monthly and annual basis. As has been the case with previous rate tightening cycles, some home buyers have moved to the sidelines to determine how they will reposition themselves in the marketplace given the higher rate environment and related impact on affordability.

 Subsequently, average prices may be down in certain areas from the peaks of February & March.   Outlying areas tend to react first to any market change. 

Will the market crash?  Supply still seems to be low in most areas.  Prices are still up 15%  vs. last year.  Areas that are the most affected:

  1. Beautifully renovated properties - still command top price   
  2. Areas that are desirable to live (or are connected to transit) - still command top price
  3. Entry level properties - buyer demand for value priced properties is still strong

Some sellers continue to test the market:  as a consequence, you will see homes staying for sale longer, as some sellers want to hold out for peak prices (we call these 'unmotivated sellers' - they are willing to wait out this cycle.

Offers anytime may still mean sellers want over asking price:  It used to be that there were 2 strategies used to sell a property: 1. List at a price that left room for negotiation and 2. List low to stimulate a bidding war. Now there seems to be a 3rd strategy - if the property did not sell in a bidding war, the seller keeps the price low to encourage showings but still wants over the asking price.

More than ever, choose to work with an experienced Realtor! As a consumer, understand that crazy home prices mean that many people think getting their real estate licence will make them some fast, easy money.  This means there are many part time & inexperienced realtors out there.  Can you imagine if you were the buyer and your agent did not understand how to draft a contract that protected you in your biggest financial transaction?  Or if you were pressured into making a quick decision without the advice of an experienced professional? 

Overall statistics:


My personal insights:

  • when I'm the listing agent, I am noticing you need to price aggressively to get as many of the 'sideline buyers' through a property as possible
  • there are fewer offers on offer night, but prices are still high for in-demand homes
  • there are a lot of sellers hoping for February/March prices 'testing the market'
  • buyers think the sky is falling and are not afraid to put low offers forward
  • offers are coming in with conditions (we have not see that for a while)
  • there are opportunities to be had - you need to look for them! 
  • motivated buyers are taking their budget and buying 'lower rung' properties so as not to miss the market
  • anticipated interest hike in June may take another bite out of the prices...
  • Scarborough still remains one of the best value areas in Toronto - both for Condos and for Homes

We are not sure how long these conditions will last, perhaps through the summer? 


 




Recent Blog Posts


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A disturbing trend I've come across recently is the fraud in the rental space.   As an agent who handles a fair share of rentals; these issues have shown up over several ways this year.   I'll tell you about 3 instances I've had and the red flags that appeared with each! 

When I'm representing a landlord and an application comes in, I spend a lot of time going through an applicants documentation and getting references and looking through their background.  Here's what I do:

  • Call their employer by finding the employer's website and calling through their office to confirm employment.  I don't just call the supervisor on the application
  • Look carefully at the documents to see if they are real; company letterhead & credit reports can be faked or bought
  • Check social media & linked in
  • Call past landlords
  • Make sure there is a building at the address they're currently renting
  • Check that the landlords name and property owners names match.   If it's an apartment building call through the property management company if it's an apartment rather than calling the number provided.
  • Look at the credit report for signs of altering


With those things in mind, let's look at 3 things that have happened to me this year!

1.  Student rental Scam - fake rental and landlord

First of all, you should never have to pay to submit a rental application, or be asked for a deposit before you get a chance to see the place.   These scams are generally ads on sites like Kijijii and Facebook for rentals that look too good to be true.  They also steal MLS listings for homes and advertise them at lower rates.  I came across one recently through a family friend desperate for some student housing.  It was a big scam; and when I called them out they 'protested too much'.    Here's how to spot these scammers:

  • They demand payment to submit a rental application
  • They demand a deposit before you see the unit
  • Makes excuses why they are not available to speak to on the phone 
  • Will only communicate through messenger, text or email
  • The advertised price is way lower than other rentals
  • Their Facebook profile was just created
  • Their Facebook name does not match their user name ID (see the URL) 

2. Fake Rental Applications   

There are some very good forged documents out there.  I had some people submit an application on a lease I was advertising and here's what I found during the checks, among the other checks I did as above :

  • Inconsistencies in addresses on the application
  • Employment letter does not look real - no header or footer with information on the company letterhead

3. Forged Tenacy Papers

I had a call from a gal who had a great story, good employment, good credit, moving to Toronto from outside the city for work, can't come in to look for a place so needed virtual showings.  Could I help her find a place.  Sounds great right?  

Now I don't usually check tenants out before I help them (and I'd helped out a client with an out of town move this year already in a similar situation)  But with everything going on right now, I felt it couldn't hurt to see what her references would say.   So she sent in her application & 

then came the paperwork - the address of her job didn't match up with her story.  The company had never heard of her or her supervisor.  There was even no property listed at the home she had put for her address!  Other red flags for scammers include what she did:

  • get overly upset when called out 
  • provide complicated excuses for 'mistakes' on application forms
  • call the fact checker a liar, unprofessional, etc.


So be careful out there folks! 



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A big thank you to the communities of Guildwood, West Rouge & Port Union for the terrific support last Saturday for my Community Shredding Event.  About 30 families participated - and their generous food donations filled our Jeep to the brim!   The food donations were taken straight to Feed Scarborough - the Scarborough Food Security initiative and will be distributed to local satellite food banks in the area.   Judging from the huge line up outside the Manse Rd. food bank Saturday, it's much needed. 

Chartwell Guildwood was my partner for this event and provided the venue and great snacks.  Thank you Kelly & Dianne for your wonderful support.  As always, Papersavers was gracious, friendly, professional and helpful!  

One interesting sideline - My husband, myself, Dianne and Alex from papersavers all grew up within the same area!   Such a big city/small world! 

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