20 Sep 2022
Week 133: What type of person are you?
Week 133: What type of person are you?
There are two types of people in this world: Those who understand that owning Real Estate provides a better retirement than not owning real estate and those who constantly fear “what if” scenarios and never take action to move their lives forward.
What type of person are you?
Perhaps you’re thinking that I’m just a shady real estate agent trying to sell sell sell no matter what—telling you that the sky is blue when it’s raining.
Or perhaps I’ve seen so many people create wealth using real estate that I want you (and me) to feel the same comfort and success.
If you’re anything like me, you see me as the latter.
I didn’t come from a wealthy family with connections, money and power.
I came from a humble apartment in Flemington Park with no idea what investing was.
I thought credit cards were free money.
But then I learned what real estate could do for you, and I’ve been all in ever since.
Imagine what your life looks and feels like when you’re ready to retire and have 2 or 3 properties with hundreds of thousands of dollars in equity sitting there for you.
I can show you that path, which requires much less cash upfront than you think.
Some Sellers are even cutting cheques for you to take their assignment sales off their hands right now. (continued below chart)
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Urban Markets: Downtown & Surrounding Areas
House Average Price: $1,418,904
House Median Price: $1,262,500
496 Active Listings
46 Firm Sales This Week
Months of Inventory (MoI) ~ 1.33 (down from 1.54 last month)
Average Days on Market ~ 13.11
Condo Average Price: $955,652
Condo Median Price: $765,000
1495 Active Listings
74 Firm Sales This Week
MoI ~ 1.78 (down from 2.02 last month)
Average Days on Market (DOM) ~ 20.42
What does Toronto real estate look like at the end of this year? (I have an awesome assignment sale described below under the North Urban chart)
I chatted with the Toronto Star about where we are today vs. where we were in the Winter. Read all about that here (no paywall)
Money will get more expensive to borrow, and more buyers will be moved to the rental market if they need to move or be sidelined until rates come down (or if they find more money).
It’s hard to argue that we’ll have any recovery this year since we already know two further rate increases are on the horizon.
Fingers crossed for more moderate hikes of 25 bps vs. the mega 75-100bps jumps we’ve seen the last few times.
I think the economy and buyers need a bit of a break from bad news, don’t you? (continued below chart)
Urban North: Rosedale, Deer Park, Moore Park, Forest Hill, & Lawrence Park
House Average Price: $2,537,438
House Median Price: $2,375,000
141 Active Listings
8 Firm Sales This Week
MoI ~ 1.29 (down from 2.40 last month)
Average Days on Market ~ 6.67
Condo Average Price: $1,942,989
Condo Median Price: $1,390,000
174 Active Listings
9 Firm Sales This Week
MoI ~ 2.12 (down from 2.43 last month)
Average Days on Market ~ 17.67
But our feelings and emotions can’t get in the way of a genuine problem; Inflation.
Bidding wars are still happening, especially in communities that haven’t seen an influx of new listings. Roncesvalles, High Park, North Riverdale (Withrow area), Some Leslieville streets, and hard loft-type properties are still selling very well.
But most properties sit for two weeks to a month, then sell with some negotiation.
Financing conditions are becoming more prevalent, and deals are not firming up due to financing concerns becoming more of a thing.
So what does all of this mean for the market?
Right now, we are seeing houses suffering a little more than condos.
House supply, specifically in the urban communities of Toronto, has increased in supply two weeks in a row after an eight-week run that saw supply drop 32.8%.
Is that a concern? Well, no, because looking at months of inventory numbers, we’re still in what we’d call an aggressive seller’s market if things were more balanced.
But if house listings continue to pile on, we could be headed for a pretty dark close to this year. Dark for those that must sell, anyway.
Leaside, Davisville, Yonge & Eglinton
House Average Price: $2,030,357
House Median Price: $1,900,000
39 Active Listings
7 Firm Sales This Week
Months of Inventory (MoI) ~ 0.73 (down from 0.85)
Average Days on Market ~ 8.89
Condo Average Price: $741,400
Condo Median Price: $701,000
164 Active Listings
7 Firm Sales This Week
MoI ~ 2.50 (up from 2.38 last mth)
Average Days on Market ~ 28.1
What should you do? If you’re comfortable and aren’t under any pressure to move, do nothing. Unless you have some extra cash, I’d keep my eyes open for some opportunities.
Especially in the assignment market.
Example – I have this assignment available right now for the 2018 price. $988/PSF at St. Clair west for $600K, including a tenant paying $2500/mth. A super deal that I’ll sell in a week or so. (message if you are interested in taking a look)
Some sellers are taking less than their original purchase price to walk away. They will regret that decision, but their loss is your gain.
Birch Cliff
House Average Price: $1,090,330
House Median Price: $940,000
28 Active Listings
3 Firm Sales This Week
Months of Inventory (MoI) ~ 1.63 (up from 1.52)
Average Days on Market ~ 14
Real talk – if you’re not under any pressure to sell your house or condo, it’s best to sit out this market and wait for brighter times ahead.
And make no mistake, there are much brighter times ahead.
You’d have to be a class-A fool to believe that markets don’t ebb and flow. Are you a fool? I don’t think you are.
We are heading into a recession. Money will continue to be harder to access in the short term.
But guess what happens during a recession? Money slowly becomes easier to access, and that’s when the herd will start to buy again.
Are you one to follow the herd or are you one who wants to chart their own path to get ahead of the masses?
(continued below chart)
Kingston Rd Corridor to Highland Creek
House Average Price: $1,641,390
House Median Price: $1,457,500
78 Active Listings
10 Firm Sales This Week
Months of Inventory (MoI) ~ 1.35 (down from 1.84)
Average Days on Market ~ 19.2
Condo Average Price: $380,000
Condo Median Price: $380,000
60 Active Listings
1 Firm Sales This Week
MoI ~ 2.34 (down from 2.44)
Average Days on Market ~ 29
Want to talk about real estate? Let’s do it on YouTube 🙂
(don’t forget to subscribe to my new YouTube Channel here, where I go over all of these reports in more detail)
Have a terrific Tuesday, and I’ll see you next week 🙂
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That’s all for today; thanks so much for your energy and attention. If you want some clarity on the market and your specific situation, please DM, comment below or email Ara@thespringteam.ca.
