by Daryl King
When I first ventured into the world of real estate back in the early 80’s, the average Canadian house sold for approximately $72,500 and the interest rate for a 5-year mortgage was about 21%. Agents used to keep all the listings in a closely guarded MLS book that they could not share outside the office; most offers were put together in-person.
…people spend hours every day looking at properties online…
Today, the market is changing on a daily basis. It used to be that it changed every 30 days, but now you have to have your finger on the pulse at all times to know what’s going on. With the technology we now have, transactions are swifter with offers commonly signed and emailed or DocuSigned via mobile phone.
The internet, especially social media, has ramped up the exposure and speed for home sales. It has generated excitement in the industry like never before. This connectivity with a vast market has created more savvy buyers and sellers. People spend hours every day looking at properties online. They’re window shopping for houses as a hobby.
Everybody has a vested interest in real estate because they want to live in their own home one day. It’s still a Canadian dream. Yet, a dream that’s increasingly getting out-of-reach, especially for the younger generation.
In January, the market in Toronto and GTA was already hot with the influx of foreign buyers. When the government imposed the 15% foreign buyer tax in Vancouver, all attention shifted here just when we had the lowest inventory. It all added fuel to the fire.
…we’ve seen how houses were being sold within days or weeks for far more than their asking price…
A few months before that, I was talking to a newspaper reporter and predicted that the market was going to change and I knew it would be soon. I was bold enough to make that announcement but not everyone listened and some even thought I was crazy. But maybe I’m not so crazy after all.
We’ve seen how houses were being sold within days or weeks for far more than their asking price. It’s incredible to see how such low inventory could have a huge line up of qualified buyers. The market heated up and was out of control.
The government stepped in to correct the market with tougher mortgage rates and financing regulations – changes that were long overdue. Yet, interestingly enough, the market started to correct itself as it always does. If anybody was paying attention, the market started to cool down with more and more houses coming onto the market.
Right now, we have 47% more active listings than we had earlier this year. New houses are entering the market and people are still buying. York Region, for example, had the biggest increase in supply and demand in the 905 area. I would say we have come to a more balanced market.
We are a world-class city. Toronto is a financial hub of Canada. I see the market picking up later this year. More people will be able to afford to buy homes and communities will continue to grow and flourish. As long as you’re in real estate, you’ll never lose because it always comes back better than it was before.
In the meantime, remain calm, stay positive. If you’re looking to buy, now is a good time. If you’re thinking about moving to a bigger house, now is a great time. The market will continue to move forward.
As a multiple award winning and top ranked real estate professional in Canada,with 3 decades of experience, Daryl King has built and runs one of Canada’s most successful real estate teams. A speaker, author and television personality, Daryl has risen to become one of the best in his field, delivering a high energy message based on his own experience. He will help you clearly define your personal, professional and team goals, and provide you with key secrets to achieving them. Visit www.darylking.com.