27 Sep 2022
Week 134: Would you move to or invest in Alberta?
Week 134: Would you move to or invest in Alberta?
The province of Alberta wants you!
They’ve launched a huge campaign aimed at frustrated Torontonians fed up with Toronto the Expensive.
The campaign aims to get you to pack up your things and move your life to the much less expensive Province where the promise of a lower cost of living and robust employment opportunities abound.
This guy did it.
Would you?
Let’s put moving to Alberta aside for a second.
Would you invest there?
If your answer is an immediate NO – why is that? What is your experience with investing in Alberta?
So many people are obsessed with buying and investing in Toronto and get overwhelmed by the price tag.
You immediately go into a “what a shame, my kids will never be able to afford Toronto as I did” or “I’ll never be able to get into the market.”
With blinders on – straight into negativity. (continued after chart)
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Urban Markets: Downtown & Surrounding Areas
House Average Price: $1,657,925
House Median Price: $1,370,000
521 Active Listings
48 Firm Sales This Week
Months of Inventory (MoI) ~ 1.33 (down from 1.54 last month)
Average Days on Market ~ 18.75
Condo Average Price: $875,013
Condo Median Price: $735,000
1531 Active Listings
90 Firm Sales This Week
MoI ~ 1.78 (down from 2.02 last month)
Average Days on Market (DOM) ~ 27.39
Sure it may be easier to buy today as competition is virtually non-existent on most homes, but that doesn’t mean homes are affordable. Especially with a 5% rate resulting in over $5K/mth in carrying costs for the average $750K condo.
Although this Richmond hill home generated 22 offers the other day…its’ certainly not the norm. But that happens when you price a $1mm home at $699. Smoke and mirrors!
Returning to the frustrated Torontonian who cannot get into the market. What about other markets to get you started?
Remember, a few months ago; I shared my story of turning $25K into $2.1 M by investing in a rundown cottage property for $200K and then levelling up to my current home.
I took my blinders off and did what I needed to get back into the market after a series of catastrophic losses in 2015-2017.
Message me and I’ll tell you the whole story. But if you’re someone who’s struggling to afford Toronto; please remember that you don’t have to live where you own. (continued below chart)
Urban North: Rosedale, Deer Park, Moore Park, Forest Hill, & Lawrence Park
House Average Price: $3,034,857
House Median Price: $2,626,500
140 Active Listings
14 Firm Sales This Week
MoI ~ 1.29 (down from 2.40 last month)
Average Days on Market ~ 26.57
Condo Average Price: $1,708,778
Condo Median Price: $775,000
187 Active Listings
9 Firm Sales This Week
MoI ~ 2.12 (down from 2.43 last month)
Average Days on Market ~ 27.56
It’s ok to stay here, rent here and invest elsewhere until you build enough equity to buy the place you love in the city you love. Like I did with the Parry Sound cottage. I rented in Toronto and started to build equity elsewhere.
Right now, we’re working with a developer in Calgary, offering incredible deals and rental guarantees on units well under $600K. Money has flowed to Calgary for a couple of years and will continue to do so.
They’re no longer a one-trick pony tied to oil. Calgary is becoming a tech and finance hub as well. Interesting times! I’ll be investing there shortly.
Anyway, back to Toronto.
This time last year, we had similar supply. Just a little less on the market than we have now, but the main story is the sales activity.
This week we have 48.9% fewer house sales in our urban markets (and that’s been as low as 62%), and condo sales are down 57.5% this week but have been averaging 70% fewer sales until this week’s uptick to 90 deals in a week.
Since the first rate hike earlier this year, we haven’t seen 90 condo sales in a week.
Leaside, Davisville, Yonge & Eglinton
House Average Price: $2,010,404
House Median Price: $2,065,500
35 Active Listings
10 Firm Sales This Week
Months of Inventory (MoI) ~ 0.73 (down from 0.85)
Average Days on Market ~ 4.6
Condo Average Price: $791,000
Condo Median Price: $820,000
164 Active Listings
5 Firm Sales This Week
MoI ~ 2.50 (up from 2.38 last mth)
Average Days on Market ~ 46.4
So what are you to do?
Honestly – nothing. If you don’t want to. If you own a home and are considering selling, now may not be the best time.
Who should be selling right now? Anyone interested in upsizing. If you’re going from a condo, townhouse or smaller house to a larger space, the savings on the Buy will be far greeted than any money you “leave on the table” on the sale.
Just plan for a worst-case scenario sale price and up to 30 days on the market for some homes. Does your home have a 2nd suite to generate income? You’ll probably sell better than one without.
Are you holding onto a pre-construction condo? Now you don’t want to sell unless you 100% need to sell. The buyer sharks are out, and they are getting deals I’ve never seen before. Most deals are selling for what the original buyer paid for them (as early as 2018 plus my fees).
Birch Cliff
House Average Price: $1,197,000
House Median Price: $1,150,000
29 Active Listings
4 Firm Sales This Week
Months of Inventory (MoI) ~ 1.63 (up from 1.52)
Average Days on Market ~ 21.25
So there you have it. Sellers should lower their expectations, and buyers should be on the lookout for deals in all markets. Except for the condo resale market.
Not as many deals there as you may think. More robust than expected sales and low inventory combined with a solid rental market keep condos and houses with income-producing potential at the top of Buyers’ shopping lists.
(continued below chart)
Kingston Rd Corridor to Highland Creek
House Average Price: $1,034,857
House Median Price: $1,015,000
71 Active Listings
10 Firm Sales This Week
Months of Inventory (MoI) ~ 1.35 (down from 1.84)
Average Days on Market ~.9.67
Condo Average Price: $500,000
Condo Median Price: $500,000
60 Active Listings
2 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 🙂
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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.
