It is a time of predictions. We can google. We can listen to the 24 hours of news feed and suddenly we are all experts on what is going to happen. This is especially true in the real estate market.
“The bubble is going to burst”. “The market is going to crash.” The last property has been bought at the appreciated value. Pity those who buy now. Not!
Here are the facts. *The market in the GTA has continued to rise. It rose, despite bank and other such analysts declaring a drop, in both 2013 and 2014. The average GTA property sale price in 2012 was a couple of thousand under $500,000. As of December 2014, the average price of in the GTA was pegged at $566,700. That’s a whopping 14% increase in property values.
In fact, the “overbuilt” condo market has been a haven for consumers. And how about the relative rental market for those condo investors? Fourth quarter 2014 rental market reports had the vacancy rate for condos at 1.3% . In some areas and at given times – that rate has dipped under 1%.
What’s more is that those low, low mortgage interest rates that were to have a termination date of last spring, and even the spring before that, are currently seeing rates of under 3% for conventional mortgages.
I just watched a movie called “The Spectacular Now”; and no, “now” is not the place we want to or even can live, but it is always the place we want to act on. Our future is always determined by our present and is a direct result of our past.
And now for the story –
Ms. Seller acquired her townhouse in North York in 2005 valued at, in around, $275,000. In the summer of 2013, she was ready for a move. The problem – somehow, though coming from a smaller space, she had managed to fill every nook and cranny with “stuff”. Floor space was taken up with “stuff”. Countertops, coffee tables displayed all kinds of knick-knacks and various small appliances, jars and more stuff. And don’t try opening a closet…”that’s where we keep our stuff”. My wife armed with pictures and feature sheet she had envisioned, went to work with the seller. She is an organizer of the “A” type. Homes were selling quickly, but conditions of this fast moving market dictated that we had ten days to peak the interest of buyers and elicit an offer.
The house, now shining and picturesque, was ready for its admiring public. Signs up, ads out, internet abounding – we were in the market.
The result of this effort – sold at $380,000. , with all conditions removed (Note: Most condos require a status/condo corporation condition that has a 12 day allowance). In today’s market, it appears that the value of this property would now break the $400,000 barrier. Frankly, still good value in this market.
This was a simple story and not as clandestine as might be implied by my original mandate of secrets from a not-so-secret agent. Well, the incredible story about “stuff” is coming next.
*facts taken from TREB and Market Watch
Walden’s Pond-David Henry Thoreau House
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