Good morning everyone;
It has been a busy time in the market and spring is in full effect. The weather as of late has been glorious and the upcoming week is forecasted to be spectacular. Next week I will have the April numbers to share with you but I expect the same overall results, in that transactions are down versus same time period last year but the average sale price is up.
Economic Outlook
Please note attachment on economic outlook, provided by Mario Nunaro of TD.
Mortgage Rates
- There is further speculation that mortgage rates will go DOWN further.
- Banks will not be advertising such discounts but it is rumoured that mortgages may be had in 2.6% range (5 year fixed) within the next few months. Dialogue with a mortgage broker will help you stay on top of the best rates. Check out www.agfineliving.com and in top ribbon click on Partners, Mortgage Partners for some trusted contacts. I know these individuals personally and am very confident to recommend them.
- Keep checking out AGFineliving.com – we are adding new sections, features and tools all the time. Like Legal corner – featuring Mark Weisleder – under “Market News”!
- Mark explains real estate law with some very cool scenarios!
In the Toronto Market
Over the last several weeks I have been involved in 4 multiple offer situations.
1. 11 offers on a home that I represented the buyers. We were out bid by $59,000. Our offer was free of conditions and price was strong compared to recent sales.
2. A unique home in The Beaches/The Beach attracted 2 competing offers. My client was successful in “winning the home”. It took full asking price and no conditions to do it.
3. My clients decided not to proceed with an offer on offer night for this particular home. In the end the home attracted 15 offers and it sold for 100k over asking (Asking 530k – Sold for 630k). It was a bungalow on a large lot (50’x150’) that will most likely be torn down to build a large 2 Storey home. I had valued at 560k based on land. Now of course the bench mark is 630k.
4. On my own listing we priced a home fairly at $514,900 versus the comparable sales in the neighbourhood. We expected a sale within 2-3 weeks. Within 3 days we had 2 competing offers (one was from my own client) and ultimately the home sold for $521,000. My client-buyer was not the winning offer! (Multiple offers can be tricky but not if handled fairly, ethically and correctly). The 2nd offer was stronger and was ultimately better for my seller-client. This semi-detached showed well and is in a very desirable school district.
The market is still seeing a relatively short supply of freehold properties and a stable supply in condominiums. All the reports and numbers I have seen indicate that the market overall will still remain robust. Condos may cool off a little, i.e. Less price growth and listings spending more days on market (but still move well overall) with more newly built supply coming on line. The new condos are being absorbed by buyers and by those owners who are leasing them out as investments and not necessarily looking to flip them.
Condo Launch V.I.P Access! – You now have an Insider on your side!
- I have now acquired V.I.P access/status with builders and virtually every condo development in the G.T.A
- I can provide exclusive, pricing, incentives and information on condo developments prior to public launch
- Some upcoming V.I.P launches (just a few that I have access to)
- Minto Communities – 3600 Lake Shore West – / June 2013
- Imperial Plaza Phase 2 – Yonge and St. Clair / July 2013
- 159 Wellesley Street – Wellesley St & Sherborne St / September 2013
- Yorkville Plaza Phase 2 – Avenue Road & Yorkville Avenue, Toronto / September 2013
- In addition I have access to information and special promotions to many developments that are already selling to the public. If you are at all interested a pre-construction condo purchase contact me.
11 home features buyers will pay extra for (Samuel Weigley, 24/7 Wall St) – US but still relevant
11. One or more fireplaces
Ø Percentage of home buyers willing to pay more: 40%
Ø Amount willing to pay extra: $1,400
Some 40% of home buyers without a fireplace said they would spend additional money for at least one and cough up an extra $1,400. The fireplace, while always popular, was less necessary when several TVs were going in the house all at once, Samuelson said. But he speculated that having a home with fireplaces may become more popular in the future as people spend less time watching TV and more time on tablets and e-readers. These people may find the fireplace a good place to cozy up and use their devices, he said.
10. Eat-in kitchen
Ø Percentage of home buyers willing to pay more: 40%
Ø Amount willing to pay extra: $1,770
The people most interested in an eat-in kitchen tend to be in the 35-to-54 age range, with 30% of those prospective home buyers indicating this is “very important” in a house. Meanwhile, just 21% of those under 35 years of age and 20% over 55 feel the same way. More people, especially those who are raising families, want kitchens that look into family entertainment rooms. Some have even made it a family hangout by placing big-screen TVs and other electronics in the kitchen. “Buyers who are in families want to be in one space and do it all,” DeSimone said.
9. Home less than 5 years old
Ø Percentage of home buyers willing to pay more: 40%
Ø Amount willing to pay extra: $5,020
Some people simply want a newer home. For those willing to pay more for a newer home, the median that people would dole out was more than $5,000. Although this is a lot of money compared to most features, that money could be a wise investment in the long run. Maintenance costs are considerably less in newer homes compared to older homes, Samuelson pointed out. He also noted that newer homes tend to be much more efficient, attracting people who are environmentally conscious.
8. Stainless steel appliances
Ø Percentage of home buyers willing to pay more: 41%
Ø Amount willing to pay extra: $1,850
Like most features, stainless steel appliances are most important to people between the ages of 35 to 54, with 23% considering them to be a “very important” investment, compared with just 16% of those under the age of 35 and a mere 11% of those over the age of 55. From a cost perspective, stainless steel appliances are not necessarily the best investment. Samuelson noted that stainless steel wears out far easier than most other common materials. Also, the children in the house can also get their fingerprints on the appliances, requiring more cleaning. However, Samuelson said people are primarily driven to buy stainless steel appliances because they look more attractive.
7. Kitchen island
Ø Percentage of home buyers willing to pay more: 48%
Ø Amount willing to pay extra: $1,370
Kitchen islands are most important to people ages 35 to 54, with 24% indicating that it is a “very important” characteristic. Just 19% of people under 35 and 13% over 55 considered this feature important. DeSimone noted that kitchen islands often come in handy for those who are raising a family. It provides additional room to put out food for the family and allows the kitchen to become more organized. Although the desire for a kitchen island is high, those who do not have one but want one are only willing to shell out $1,370, less than most other features.
6. Ensuite master bath
Ø Percentage of home buyers willing to pay more: 49%
Ø Amount willing to pay extra: $2,030
Once again, the ensuite master bathroom tends to be more important to people ages 35 and older. “It kind of goes to the ‘home is my sanctuary’ mentality,” Samuelson said. This, along with a walk-in closet in the master bedroom, has become more important in the past 10 years or so. Many people are eager to make their bathroom more “homey” by doing things such as installing televisions on the wall. The fact that many master bathrooms have two sinks is also an appealing option for married couples, Samuelson added.
5. Hardwood floors
Ø Percentage of home buyers willing to pay more: 54%
Ø Amount willing to pay extra: $2,080
Some 25% of buyers under the age of 35, and 28% of those between 35 and 54, considered hardwood floors “very important” when looking for a home. Only 17% of people ages 55 and up felt the same way. In previous generations, homes with carpets were considered better in order to conserve energy, DeSimone said. Even today, older people are more likely to feel more comfortable with carpeting because the insulation makes the home a little bit warmer. But for younger people looking to have many guests at the house and for people with children, hardwood floors are desirable because they are easier to clean than carpets.
4. Granite countertops
Ø Percentage of home buyers willing to pay more: 55%
Ø Amount willing to pay extra: $1,620
Among homeowners between the ages of 35 and 54, 24% viewed granite countertops as “very important,” compared to 18% of people under 35 and 18% of people over 55. Although just one in every five prospective home buyers said granite countertops were very important, 55% of those who bought a home without such a countertop said they would pay extra for it. Both DeSimone and Samuelson agreed that the granite countertop is more of a style issue than anything else. “There has been more emphasis on the beautiful kitchen these days, and granite countertops are a part of that,” Samuelson said.
3. Walk-in closet in master bedroom
Ø Percentage of home buyers willing to pay more: 60%
Ø Amount willing to pay extra: $1,350
A whopping 60% of homeowners were willing to pay extra for a walk-in closet in the master bedroom, with 44% of people between the ages of 35 and 54 viewing this feature as “very important,” compared to just 35% under the age of 35 and 36% of people 55 and older. DeSimone said the walk-in closet is desired for two main reasons: space and status. The space is very desirable for people as they get older and acquire more clothes, allowing people to be more organized. Having a walk-in closet in the master bedroom is also a status symbol. When giving a house tour, DeSimone said, people want to say, “Hey, check out my closet,” in the same way they say, “Hey, have you seen my new kitchen?”
2. New kitchen appliances
Ø Percentage of home buyers willing to pay more: 69%
Ø Amount willing to pay extra: $1,840
About 69% of homeowners said they were willing to spend more money for new kitchen appliances. Unsurprisingly, people who are looking to buy a new home find this far more important than people who are eyeing previously owned homes. People who are the first to live in a specific house tend to want everything to be new in the house because they consider the house truly “their own,” DeSimone said. People also do not want to have to deal with the stress of broken appliances. “They don’t want to come home after a horrible stressful day at work and find the dishwasher isn’t working or the fridge is making noises.”
1. Central air conditioning
Ø Percentage of home buyers willing to pay more: 69%
Ø Amount willing to pay extra: $2,520
Nearly seven in 10 homeowners said they would be willing to pay more on central air conditioning — the same as new kitchen appliances and more than any other feature. Central air conditioning was considered “very important” by more than 60% of people in all age groups. Samuelson noted that although people were willing to shell out approximately $2,500 for the feature, that is far less than what it would actually cost to install central air conditioning. “There is a difference in people’s preference and what they are willing to pay for,” Samuelson said. “They may want the steak but are on a macaroni budget.”
Have a wonderful weekend, Anthony