Posted in News

Since the announcement in May 2017 regarding the implementation of the 15% foreign buyers tax, the real estate market has come to a screeching halt. The market was on fire for the previous 18 months with multiple offers and escalating prices fueled by many foreign buyers and domestic and international investors.

While the most affordable real estate still frequently sells (properties below $600k), properties above this mark are selling at a very slow pace. In the last 18 months prior to the announcement prices have risen by about 25% making affordability not a reality for many local buyers. Since the announcement we have seen a decline of about 10-15% in prices but that still has not had much of an effect on the current slowdown of the market.

We do anticipate that prices will probably have to fall an additional 10% to bring prices back to where they were 2 years ago for the market to get back into full swing as it was before. The other factor to consider is the rising rates in the market which is also having an effect on the current situation.

We do not see anything changing come this spring unless prices continue to fall. Further to all this is Immigration Canada has stated that they aggressively want to add an additional 1 million people into Canada over the next 3 years. That's an average of 333,000 people each year. With an average of 4 people per family that equates to an additional 83,250 homes needed annually which will keep a high demand on low inventory which will further fuel the rise in prices. Its great for the economy but not good for housing.

It has been stated that Toronto is the 3rd or 4th largest city in North America. With many of the immigrants coming to this great city, time will tell what happens to this great city of ours. Unfortunately, it looks like more traffic, higher real estate prices and higher demand on housing. 

Open House, Open House, Open House. Most sellers want an Open House. The reality is that open houses are just a waste of time. They do not sell houses. The majority of people looking to buy a property work with an agent to help them find the ideal property based on their needs and budgets.

Many agents push for Open Houses to try to get potential new clients as buyers or sellers of real estate. Agents see it as a way of trying to start a relationship with a prospective new client, that's if the person isn't already working with another agent. The majority of people that attend open houses are nosy neighbours and "tire kickers". They are the people that have nothing better to do on a weekend so they go around neighbourhoods looking at properties and dreaming that maybe one day they too would like to live in the area.

Just imagine letting your agent do an Open House and having all these strangers without agents coming into your home, going into all your rooms, looking in all your closets, going through your things and maybe even taking a thing or two. Its impossible for any agent to keep an eye on everyone coming in and see what they are and aren't touching. The best thing for any seller to do is have their agent make scheduled appointments with buyers agents. This way, anyone coming into your home comes with an agent that hopefully knows their client to some degree and can try to ensure that any and all appointments occur without any incidences of problems of theft. 

Most serious buyers are working with an agent and those same buyers are the ones that are most likely to buy a property, not the people coming in from an Open House. Serious buyers have already done their research and know what they're looking for so, they prefer to see a home of interest uninterrupted after dilligent research. Think of it like buying a car, you won't just go to a dealership to walk around the showroom. Rather you research the make and model of prospective vehicles then visit them for test drives in an orderly fashion. The choice is yours whether you'd like to host an open house, but you should choose wisely and ensure that your agent is looking out for your best interest and not theirs. The key to ensure your property sells is to prepare it for sale before it actually goes for sale on the MLS. The better it shows the better the chances of selling, provided it's also priced properly.