Another Year, Another Record For Toronto’s Condo Rental Market 2014

Urbanation Inc. (www.Urbanation.ca) , the leading source of information and analysis on the Toronto condominium market since 1981, released its fourth quarter and annual rental market results for 2014 today.

The number of condo apartments rented through the MLS system during 2014 in the Greater Toronto Area managed to top 2013’s breakout year by growing 15% to 22,765 units. Fourth quarter volumes grew by 11%, affirming a relatively slower rate of growth for the market in the second half of the year.

Demand and supply growth were aligned during the fourth quarter as condo rental transactions grew at a similar pace to listings, which increased 10% year-over-year and held the ratio of leases-to-listings to a level consistent with previous fourth quarters at 66%. Supply growth has seen some reprieve over the past six months as the number of new project registrations has scaled back.

Average condo apartment rents grew by 1.0% year-over-year in Q4 to end 2014 at $2.39 per sq. ft.  For the year as a whole, condo rents appreciated by an average of 0.8%, a marked deceleration from the 4.1% rate of growth recorded in 2013 and the 3.7% increase in 2012. The absolute average monthly rent continued its downward trend on account of shrinking unit sizes, declining by 0.7% annually in the fourth quarter to $1,816 — the fifth consecutive quarter of year-over-year declines. Over the past year, the average size of units rented has fallen by 1.5%, or 12 sf to an average of 761 sf in Q4-2014.

“The condo rental market grew into its shoes in 2014. Demand proved strong enough to absorb the market’s greatest amount of new supply in history, while also revealing an equilibrium for rent levels. The rental market’s proven stability and consistent growth is encouraging as we remain in a scenario of high condo completions over the next couple years,” said Shaun Hildebrand, Urbanation’s Senior Vice President.

 

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1 King St W

04 kitchen and entry

12 mbr3

 

$249,900

Ste: 2001

MLS: C3103814

The Residences at One King West. Architecturally inspiring and ideally located.  Tastefully Renovated Suite. Fully Furnished. Corner Suite. Windows In Every Room. Natural Light Galore. Terrific Floor Plan. City Views. 10′ High Ceilings. Shower and Tub. Sliding Glass Bedroom Door. This Unit Is A Perfect Pied-A-Terre Or For A First Time Home Buyer. Just Move-In Or Rent-Out. Great Investment Potential. Rental Income At Approximately $1800 Monthly.

This Condo Includes: All furniture, All Light Fixtures. All Window Coverings. Fridge, Cooktop, Oven, Built-In Dishwasher, Microwave/Fan, Washer/Dryer. Walkscore And Transit Score of 100. Entertainment, Shops, Restaurant, Banks and HWY Access Nearby. Path Access And Subway Access In The Lobby. Rogers High Speed and VIP Cable Package Included.  Residents Enjoy 5-Star Facilities. Concierge. Lobby Bar and Restaurant. Valet Parking. Pay-Per-Use Services. Beautiful Historic Building.

For more information please visit www.1KingSt2001.com

Please contact me direct at 416-520-6746 or by email, David@DavidStoddard.ca

 

Mortgage Rates to Decline Following Rate Cut. It’s Time to Meet…..

TORONTO — Canadian homeowners have likely gained a reprieve from an expected increase in mortgage rates this year.

Economists were expecting rates to dip slightly in response to the Bank of Canada’s surprise move Wednesday to cut its trend-setting interest rate to 0.75 per cent, from one per cent, to soften the blow of dropping oil prices on the Canadian economy.

“This signals that low interest rates will be with us a while longer,” said Avery Shenfeld, the chief economist at CIBC World Markets, noting that the central bank’s rate cut will likely mean a corresponding 0.25 drop in variable, or floating, mortgage rates.

Fixed-rate mortgages are also likely to see a slight decline, as they follow bond yields, which will move lower in response to the rate cut.

However, TD Bank (TSX:TD) was quick to announce Wednesday it will maintain its prime interest rate at three per cent, noting that factors beyond the central bank influence its rates.

“Not only do we operate in a competitive environment, but our prime rate is influenced by the broader economic environment, and its impact on credit,” the bank said in a statement.

Click HERE for the full story.

Now is the PERFECT time to meet with my Team Mortgage Broker for a mortgage consultation.

Home affordability is at an all time low.

Knowing what is required for a successful mortgage application begins many months before your home search begins.

To request a FREE mortgage consultation please click HERE.

 

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Buying a Cheaper Home Outside Toronto May Not Pay Off

Great article in www.TheStar.com 

Most home buyers say they would prefer to live in a walkable neighbourhood even if it means buying at least a slightly smaller house.

When it comes time to signing on the realtor’s dotted line, however,  buyers still base their decision on the sticker price of the home, choosing a cheaper house over the higher purchase price of a cozy, walkable neighbourhood.

That was the finding of a study released earlier this year by RBC and The Pembina Institute.

Now the bank and sustainability think-tank have followed that research with a report illustrating how the cost of that cheaper home shakes out if the purchaser factors in the cost of transportation in the Toronto area.

“People will often choose to drive as far as it takes to qualify for a mortgage. But once they get there, the actual costs undermine the lower cost of the house,” said Pembina’s Ontario director Cherise Burda, who co-authored, “Location matters: Factoring Location into Home Buying Decisions.”

The report uses data from four real-life home buyers to provide hypothetical real estate and commuting scenarios in five different suburban and downtown locations for each purchaser.

Derek Durham is one of them.

Click here for more.

 

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What Online Dating Can Teach You About Selling Your Home

Great article in http://RealtyTimes.com

Online dating is big business, with 5.5 million users actively looking for love each day. Thirty-three percent of couples meet online today and 120,000 U.S. marriages every year, according to Blue Water Credit. And those numbers are growing exponentially every day. But that doesn’t mean everyone who’s online knows what they’re doing. Don’t believe us? Check this out (Warning: some inappropriate language and content).

So what can online dating teach you about selling your home? A lot, surprisingly.

 

Be Smart

When you create a dating profile, you’re trying to capture the essence of your beauty and personality. Apply the same principle to your home for sale. If you’re not certain what your home’s best features are, your agent will surely tell you. You may also want to ask a good friend to come give an opinion. Then, emphasize the good stuff while deemphasizing the not so good.

 

Spruce it Up

You wouldn’t go on a date wearing tattered or stained clothes, so don’t show your house with tattered or stained furnishings. If your couch has seen better days, a throw rug and a few pillows may be all you need to disguise the damage.

Stained carpets? Try steam cleaning first. If that doesn’t work, get an inexpensive area rug. Worn tables? Cover them with a stylish tablecloth.

 

Be a Little Coy

Don’t be afraid to go for it with a bit of flirtation. Just like a dating profile that insists on lifelong celibacy or is aggressively chaste may not attract the right attention (and the same certainly goes for those that go waaaaay beyond flirtation), a home that shows blah and boring probably won’t garner much notice.

“Popular wisdom says that when you put your home up for sale, it should be made to appear as bland and beige as possible,” said The Kansan. “Well, like a lot of popular wisdom, this idea is only partially true. A low-key look helps potential buyers to envision how their own possessions will fit into the house, but a dash of zest will help your property to stand out from the crowd…in a good way.

Take a sexy pool shot with the fountain going. Transform your boring bed into a hotel masterpiece with pillows and turned-down bedding. Add a little sparkle to your dining room table, your fireplace, your sideboard. And for open houses, appeal to the senses with a sparkling clean home, soothing music in the background, and chocolate chip cookies freshly made in the oven.

Click here for more.

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Toronto’s Condo Market in 2014 – A Year in Review

Great article in www.MoveSmartly.com

As a follow up to my previous post which looked more closely at the market for houses in 2014, this week I’m going to look at Toronto’s condo market in 2014. I’m going to look at some of the bigger metrics (sales, new construction completions etc) to see how the market performed overall. I’m also going to dig a bit deeper into some interesting trends that we’ve been tracking over the past couple of years. There are a lot of rumours, fears and assumptions about what’s really going on in Toronto’s condo market which is why looking at the data is critical. The numbers don’t lie and by looking at data the right way we can get a better sense of what is really happening.

Record Completions

2014 was a big year for Toronto’s condo market. The Greater Toronto Area saw the highest number of condo completions ever in 2014 with Realnet reporting 19,722 new condo completions in the first 9 months alone (fourth quarter numbers are not available). This surpassed the previous annual record of 16,668 completions set last year.

While it’s important to track the number of condo completions each year, it’s arguably more important to track how the market reacts to this new inventory. By that I mean, what happened to these 20,000 newly completed condos in 2014? Were they all flipped on closing for a profit? Were they all bought by end users who just moved into their units when they took possession? Were they bought by investors who listed them for rent as soon as they were completed? These questions matter because the answers to them can tell us whether the market is performing well or whether we are starting to see troubling signs.

As an example, one of the biggest arguments made by people predicting a crash in the condo market is that our market will be unable to absorb the “unprecedented supply of new condos in the pipeline”.

This on the surface is a pretty reasonable concern and even one that I myself have had over the years. If I told you that in any given year we can expect to see just over 40,000 resale condos listed for sale in the GTA most people would be concerned about the impact that an additional 20,000 newly completed condos might have on the market, in particular if many of those owners decide to list their condos for sale.

Click here for more.

 

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Toronto Condo Hot List for the Week of January 5, 2015

David Stoddard Condo Tours

 

 

 

 

 

 

 

 

 

Here are my Top Picks for the Week:

 

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18 Stafford St #103

Price: $364,900 Beds: 1 Baths: 1 Sq Ft: 750

Open Concept with an East Facing Terrace. Natural Light Galore. Laminate Flooring. Inclusions: Fridge, Stove, Dishwasher, Microwave. Stacked Washer And Dryer. All Light Fixtures. And Window Coverings. Alarm System. Parking. Locker. Maintenance Fee $…

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33 Harbour Square #1630

Price: $314,800 Beds: 1 Baths: 1 Sq Ft: 547

Harbourfront Living. Steps From The Boardwalk. High Demand Building At The Foot Of Bay St. Freshly Painted, Open Concept 547Sf Condo. Natural Light Galore From The Double Juliette Balcony Doors . Quiet Courtyard Exposure.Terrific Ensuite Storage Wit…

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70 Roehampton Ave #2212

Price: $450,000 Beds: 1 Baths: 1 Sq Ft: 650

“The Republic” By Tridel. Unobstructed East View From The Balcony. Hardwood Floors. Granite Counter-tops. 9 Foot Ceilings. Open Concept. Terrific Natural Light. Inclusions: Stainless Steel: Fridge, Stove, Dishwasher, Microwave. Stacked Washer/Dryer….

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630 Queen St E #203

Price: $429,900 Beds: 1 Baths: 1 Sq Ft: 750

Sync Lofts In The Core Of Leslieville. Stunning 8-Storey Boutique Style Condo On Queen Street East. This 1 + 1 Bedroom Unit Is Sure To Satisfy! Hardwood Throughout. Master Suite With Adjacent Studio Den On-Looking Large Terrace With Gas B-B-Q Hook-U…

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Toronto’s Real Estate Market in 2014 – A Year in Review

Great article in www.MoveSmartly.com

As 2015 slowly approaches I thought it would be worthwhile to take a look back at how Toronto’s real estate market performed in 2014 to see if it can offer us any insights into what the year ahead might bring.

Before jumping into what happened in Toronto’s real estate market this year I’m going to look back to 2012 to see how events that happened two years ago impacted the real estate market this year.

The real estate market in 2012 got off to a strong start with sales up 12% during the first six months of the year. Then in June of 2012 the federal government introduced several new changes to insured mortgages in Canada which impacted buyers with less than a 20% down payment. The biggest change was a reduction in the maximum amortization period on insured mortgages from 30 years to 25 years. The amortization period reflects the number of years it would take to pay off your mortgage assuming your interest rate and monthly payments remained unchanged.

Reducing the amortization period had a big impact on first time buyers because it effectively reduced their home buying budget by approximately 10%. A couple who could afford to spend $560K on a home under the old rules in June could only afford to spend $500K under the new rules in July.

The other significant change was that the federal government would no longer insure homes over $1M which meant that any buyer spending over $1M would need at least a 20% down payment. Before the rule change buyers spending over $1M could buy a home with just a 5% down payment.

These changes pushed many buyers to put their home buying plans on hold and we saw this reflected in the market as sales were down every single month between July 2012 and June 2013. Combined, sales were down 12% during those 12 months.

Click here for more.

 

Here is what you can do next:

 

David Stoddard Buyer Planning Sessions

 

 

 

 

 

 

 

 

Please contact me direct at 416-520-6746 or by email, David@DavidStoddard.ca

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Toronto Condo Hot List for the Week of December 29, 2014

David Stoddard Condo Tours

 

 

 

 

 

 

 

 

Here are my Top Picks for the Week:

33 Harbour Sq Cash-Flow Analyses: Click HERE

33 Harbour Sq Closing Costs: Click HERE

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55 East Liberty St #608

Price: $459,900 Beds: 2 Baths: 2 Sq Ft: 930

Premium Corner Unit With South East Views. 930 Sq Ft. With 102 Sq Ft. Balcony. Sun-Drenched. Open Concept. Owner Occupied. Excellent Condition. 9′ Ft Ceilings. Granite Counters. Laminate Flooring. Inclusions: Stainless Steel: Stove, Fridge, Dish…

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33 Harbour Sq.

Price: $314,800 Beds: 1 Baths: 1 Sq Ft: 547

Unit #1630 Harbourfront Living.Steps from the Boardwalk.High Demand Building at the Foot of Bay St. Freshly Painted, Open Concept 547sf Condo. Natural Light Galore from the Double Juliette Balcony Doors. Quiet Courtyard Exposure.Terrific Ensuite Sto…

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