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Money Toronto New Home Listings Vanish Because Sellers Don't Like What They See In The Market

21:31  17 may  2018
21:31  17 may  2018 Source:   huffingtonpost.ca

Toronto home prices are steadying, amid dramatic year-over-year declines

  Toronto home prices are steadying, amid dramatic year-over-year declines Toronto area housing statistics continue to look dramatically lower than the steeply rising figures of early last year. But there are signs that the market is flattening.The average home or condo sold for 12.4 per cent less year over year in April with all types of resale houses and condos averaging $804,584 across the region.But preliminary seasonally adjusted prices from the Toronto Real Estate Board (TREB) show prices down only 0.2 per cent from March with 1.6 per cent fewer sales month over month, about the same as February to March, a much gentler drop than the start of the year.

But home sales in Greater Toronto have fallen even faster than new listings — down 33 per cent in April from a year earlier, when the market was near Because of that, both Mercer and Leduc expect Greater Toronto to return to house price growth in the coming months — although Mercer expects

Sales of luxury homes in Toronto fell by nearly 68 per cent in the first quarter of this year, Royal LePage reported earlier this month. With listing prices well over what most people make in a lifetime, the most expensive homes currently on the US market feature perks like full spas, enormous movie

A real estate agent stands outside of a home holding an open house in Brampton, Ont., near Toronto, Sat. May 20, 2017.© Provided by AOL Inc. A real estate agent stands outside of a home holding an open house in Brampton, Ont., near Toronto, Sat. May 20, 2017.

Homeowners in Toronto and surrounding regions don't seem too impressed with what's been going on in their housing market, and they've responded to the slowdown by staying put in their homes.

That decrease in supply could actually help the market bounce back faster than it would have otherwise.

The number of new listings of houses for sale in Greater Toronto dropped by 24.8 per cent in April, compared to the same month a year earlier, according to data from the Toronto Real Estate Board.

How to lose big money in Toronto real estate

  How to lose big money in Toronto real estate These are the people who bought at the peak of Toronto’s real estate bubble, and then lost hundreds of thousands within monthsJohn, a real estate agent, thought he had financing lined up. But the bank declined to lend him the money. John had recently formed his own brokerage, and the bank was treating self-employed individuals with far more caution in an overheated market. He consulted two lawyers, who told him that if he walked away from the deal, he could be sued. John decided he had no choice but to take a mortgage from a private lender that carried a hefty 12 per cent interest rate.

The market is so tight that Ms. Staub often recommends that people looking to trade up to a new home should first sell their own house, and then In calmer markets , buyers typically expected to get major appliances like refrigerators, washers and dryers — perhaps even that riding lawn mower sitting in

Toronto is seeing detached listings rise at a massive rate, while sales drop and smart money has been Overheated markets like Toronto are often said to be operating on greater fool theory. Market Shock Is Closer Than You Think. This information of a pending shock in the near future is

At the very least, the numbers suggest that there is no panic in southern Ontario's housing markets in the wake of a price and sales slowdown. In a panic situation, new listings would spike as homeowners seek to cash out of a market in which they've lost faith.


  Toronto New Home Listings Vanish Because Sellers Don't Like What They See In The Market © Provided by AOL Inc.

But the drop in new homes being listed for sale is "a sign that that potential sellers are unimpressed with the prices on offer," Bank of Montreal chief economist Doug Porter wrote in a client note.

The average price of a home sold in Toronto has dropped by 12.6 per cent over the past year, to $804,584 in April. But that drop is exaggerated by the change in the mix of homes being sold. With fewer high-end houses for sale, the average price skews downwards.

The MLS home price index for the city, which factors in the mix and quality of homes sold, showed a 5.2-per-cent drop in house prices over the past year.

Mortgage rules hit Calgary housing market with 'collateral damage': CREA

  Mortgage rules hit Calgary housing market with 'collateral damage': CREA Housing sales in Canada were down significantly this year, and Calgary was one of the cities leading the drop, according to a new report from the Canadian Real Estate Association (CREA). "This year's new stress test has lowered sales activity and destabilized market balance for housing markets in Alberta, Saskatchewan and Newfoundland and Labrador," said Gregory Klump, CREA's chief economist, in a release Tuesday."This is exactly the type of collateral damage that CREA warned the government about.

We’re starting to see pocket listings , where agents tell their friends or officemates about a listing so it can be Then, consider adopting my classic New Year’s Resolutions for home sellers Your job as a seller is to eliminate any potential objections that would stand in the way for a buyer to make an offer.

Because home buyers generally have very little interest in the real estate market when they are not buying a home , they don ' t always know how the If your agent can save the listing agent some time by preparing the offer correctly, the listing agent might be inclined to recommend your offer over an

"It may be that people are trying to time the bottom of the market," TD Bank economist Rishi Sondhi said, as quoted at Bloomberg. "They're holding out because they think the market is going to turn around."

But Jason Mercer, director of market analysis at the Toronto Real Estate Board, says all the policy changes introduced in the past year are also keeping home sellers on the sidelines.

"People are still coming to terms with the volatility in the market as a result of (Ontario's) Fair Housing Plan and changes in mortgage lending guidelines," Mercer told HuffPost Canada.

He noted that, with homes taking longer to sell, the market is still better supplied than it was a year ago, even with the slowdown in new listings.

Pierre Leduc, a spokesperson for the Canadian Real Estate Association, said another reason for the lack of new listings may be that the people who would have sold their homes now can't afford to buy the new one they wanted.

Average house price in Canada fell 11% in past year, CREA says

  Average house price in Canada fell 11% in past year, CREA says The average price of a Canadian home declined by more than 11 per cent in the 12 months up to April, the Canadian Real Estate Association said Tuesday. The realtor group said the number of sales plunged by 13.9 per cent compared with the previous year's level, and fell to the lowest April showing since 2011.April is typically a booming month for home sales, as warmer weather spurs sales. But listings slowed from March's level during the month, coming in 4.8 per cent lower. It was the slowest April for new listings in nine years, CREA said.

Likewise, home buyers won't find pocket listings online or by a "For Sale" sign in the front yard To test the market : You can get an idea of what interested buyers are willing to pay for your home To give them the push they need to sell: Some people don ' t want to list their homes , but would consider

Some listing agents will add phrases like “make an offer,” or “no showings without a buyer’s offer” to their listings . They understand that even a low-ball bid Well, 70% of those realtors say that home buyers and sellers are “kept in the dark” when it comes to ethical infractions, licensing violations and

Many move-up buyers "have had to go back to the drawing board as far as how much home they can afford" because of the new mortgage rules, Leduc told HuffPost Canada in an email. Those rules chopped off an estimated 20 per cent or so of Canadians' buying power.

They're waiting to save up a larger down payment, or have decided to stay put in their current homes, "so those potential listings are out for now as well," Leduc said.

Earlier on HuffPost Canada:


  • Owners Of $4M Vancouver Home Say They Can't Afford Tax Bump
  • Prison For Founder Of Company That Owns Billions In Canadian Real Estate

But home sales in Greater Toronto have fallen even faster than new listings — down 33 per cent in April from a year earlier, when the market was near the peak of its frenzy. The city has shifted from being a seller's market to being in balanced territory, Leduc said.

Because of that, both Mercer and Leduc expect Greater Toronto to return to house price growth in the coming months — although Mercer expects that growth to be much more moderate than what was seen prior to the slowdown, and "certainly not" the massive 20- or 30-per-cent price spikes seen before last spring.

Housing markets set for another summer of discontent — and mortgage rules are to blame

  Housing markets set for another summer of discontent — and mortgage rules are to blame Haider-Moranis Bulletin: The spring thaw many had expected in housing markets didn’t happen with April showing sluggish salesEditor’s note: The opinions in this article are the author’s, as published by our content partner, and do not necessarily represent the views of MSN.ca or Microsoft.

A bad move for any new listing is to go from active "for sale" to pending status, and then suddenly appear back on the market . It's three words no agent wants to see attached to a listing : back on It meant the terms in the purchase contract could not be met, and it was back to the negotiation table.

Real estate sellers surveys tell us that they want help from their real estate listing agent with finding a buyer for their home or property. Update in the New Internet-Intensive World. Images are the top requirement of home buyers on the Web, and sellers will want to see that you're doing a good job for

But not everyone agrees the market is on the verge of a rebound. BMO's Porter says bond yields, which influence mortgage rates, are "still grinding higher," suggesting still-higher borrowing costs on the horizon for Canadian homebuyers. That could put more downward pressure on housing.

"Don't look for a quick turn in the market anytime soon," he wrote.

Also on HuffPost:

  Toronto New Home Listings Vanish Because Sellers Don't Like What They See In The Market © Provided by AOL Inc.

This article originally appeared on AMP: HuffPost Canada at https://www.huffingtonpost.ca/2018/05/17/toronto-new-home-listings_a_23436420/

Here’s why real estate stocks are a bad investment in 2018 .
Here’s why real estate stocks are a bad investment in 2018Steps taken by federal and provincial governments and the Office of the Superintendent of Financial Institutions, Canada’s banking regulator, are curbing new demand and forcing sellers to remove their listings. The end result of these interventions may be more significant than what the government had originally intended, but these moves have slowed down the pace of price growth and the rampant speculation considerably.

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