darlene darragh, broker june 27, 2019 – issue 41 real estate market … · 2019. 7. 25. ·...

Darlene Darragh, Broker June 27, 2019 – Issue 41

Real Estate Market Watch

Page 4

What’s Inside

May 2019 Market Report

President Club Award Winner 2017

Award Winning Real Estate Broker 2013 - 2016

Page 8 !Condo Resales Slowing

Resales Slowing

Page 4 May 2019 Market Report

Page 7 VIP Condo & Pre-Construction Website

Summer Has Finally Arrived

Summer Has Finally Arrived

We have all been waiting for summer and warm weather to arrive. Finally I can say that sunny days are here to stay as families welcome the new season.

Real estate sales have increased, families are moving and tenants are finding rental accommodations.

Priced right a home will sell. Act fast and you can secure that rental property even with tight competition. Proper representation as a buyer, seller or tenant has never been more important.

Over the past several months we have been busy helping buyers, sellers and renters realize their dreams. Our latest sale helped a family we have worked with many times assisting their senior relative with the next stage of life. Other activities have included helping several families who were referred to us rent in an extremely competitive rental market.

We have stated over the last year that the government needs to eliminate the stress test. After several interest rate hikes, economic and political uncertainty and other factors, keeping this measure in place is affecting the ability for many to get into the market or their existing equity. As we head into the summer and a fall election, election consequences have never been more evident. We along with many other housing professionals hope that either our existing government or a newly elected one will remove this unreasonable constraint on home ownership.

This issue will cover a variety of topics including the rental market as more buyers are forced into rentals because of the stress test, condo sales, and much more.

Page 2 Condo Rental Market

Page 9 Residential Only Sales

Page 11 Solds

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Darlene Darragh, Broker

Condo Rental Market Stats for Q1

Toronto Real Estate Board President Garry Bhaura announced that Greater Toronto Area REALTORS® reported 6,646 condominium apartment rental transactions through TREB’s MLS® System in the first quarter of 2019. This result was up by 7.7 per cent compared to Q1 2018. Rental transactions were up for bachelor, one-bedroom and two- bedroom apartments.

The number of condominium rental apartments listed at some point during the first quarter of 2019 was also up on a year-over-year basis by 22.4 per cent – outstripping the annual growth rate for rental transactions.

“It makes sense that we continued to see an increase in condominium apartment rentals during the last quarter. The GTA’s population continues to grow as people are attracted to the region by its strong economy and diversity. At the same time, it was also good to see an increase in the number of units listed for rent. However, with average rents continuing to increase well-above the rate of inflation on an annual basis, market conditions clearly remain tight. Development of more rental supply is imperative to the long-term sustainability of the GTA rental market,” said Mr. Bhaura.

The average Q1 2019 one-bedroom condominium apartment rent for the GTA as a whole was $2,143 – up 7.4 per cent compared to Q1 2018. Over the same period, the average two-bedroom condominium apartment rent increased by six per cent to $2,811.

“Affordable rental housing is an important component in the overall competitiveness of the GTA. Businesses and individuals are more likely to locate in regions where there is a ready supply of affordable housing alternatives. While condominium apartment investor-owners have provided the great majority of new rental stock over the past decade, we know there is a need for many more rental units, as evidenced by vacancy rates hovering around one per cent. TREB looks forward to working with policy makers in the design of proactive housing policies pointed at the development of new rental supply, including during the recently announced City of Toronto Housing TO consultations,” said Jason Mercer, TREB’s Chief Market Analyst.

3


Condo Market Statistics for Q1

Toronto Real Estate Board President Garry Bhaura announced that Greater Toronto Area REALTORS® reported 4,731 condominium apartment sales through TREB's MLS® System in the first quarter of 2019. This result was down by 6.8 per cent compared to Q1 of 2018.

New condominium apartment listings entered into TREB's MLS® System were up by 2.4 per cent compared to Q1 2018, with 8,222 listings being added in 2019 versus 8,029 listings added in the first three months of 2018.

"While we experienced a slightly better-supplied condo market in the first quarter of 2019, the market segment remained tight enough to retain the highest year-over-year rate of price growth compared to other major home types. Condos continue to provide prospective buyers with a relatively affordable housing option in the GTA, especially given the impact of the OSFI-mandated mortgage stress test," said Mr. Bhaura.

The average price of a condominium apartment increased by 4.5 per cent from $533,520 in Q1 2018 to $557,377 in Q1 2019. Year-over-year price growth in the City of Toronto, which accounted for 69 per cent of transactions, was slightly higher at 5.4 per cent resulting in an average price of $603,243.

Condominium apartment listings, in both the ownership and rental markets, can be influenced by the completion of new condominium apartment projects. According to CMHC, condo apartment completions were up substantially year-over-year in the fourth quarter of 2018, which could account for an uptick in condo ownership and rental listings in Q1 2019. Conversely, condo apartment completions were down year-over-year in Q1 2019, which could arguably impact listings in the opposite manner over the next three months.

"The condominium apartment rental market remained very tight through the first three months of 2019. Average one-bedroom and two-bedroom rents were up well-above the rate of inflation on a year-over-year basis in the first quarter. However, the condo rental market also benefitted from an increase in the number of units listed, resulting in more choice for prospective renters. With this said, we would need to see a number of quarters with listings growth outstripping rental transaction growth in order for the market to become more balanced," said Jason Mercer, TREB's Chief Market Analyst.

4


May 2019 Market Report

According to figures released May 5 by The Oakville, Milton and District Real Estate Board (OMDREB), the number of all property sales increased in May compared to the same period in 2018. Monthly property sales jumped by 43, totaling 845 compared to 802 in May 2018. The total number of new property listings also saw a rise, increasing by 29 this year: 1,461 new listings in May 2019 compared to 1,432 in 2018. "Despite the constraints of the 'Stress Test' on Buyers getting mortgages and the foreign tax on international investors, many homes are selling at or near their asking prices - and in some cases above asking price," says OMDREB President Oliver Matas. "Year over year, our sales, listings and average price are up. This is a testament to an economy that is still going strong in Oakville and Milton. Generally any property listed under a Million dollars in these areas will sell quicker at or near asking price, depending on location and the state of the property," explains Matas. "We are now heading into summer where activity typically slows down, but if we continue to have a strong economy we should expect to have similar year over year results just like the spring market." The dollar volume of all property sales processed through the OMDREB MLS® system saw a drastic increase of over $68 million compared to last year. The figures in May 2019 sat at $592,832,914 as opposed to $524,762,249 in May 2018. Milton's average sale price for the month of May was $806,408, a substantial increase of 13.56 percent compared to May 2018 at $710,087. The average sale price in Oakville was $1,060,173, up 2.83 percent from $1,031,027 compared to the same time in 2018.

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March 2019 Market Report

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(Continued from page 4)

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(Continued from page 5)

March 2019 Market Report

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The www.LuxuryCondos.realestate website offers you the latest projects in many communities (Oakville, Burlington, Hamilton, Niagara, Stoney Creek, Toronto, Etobicoke, Oshawa, Markham, Barrie and beyond).

Note: We will be adding communities and projects constantly.

By working with us, you get:

• Automatic notice of new projects when you are our Client Preferred List

• VIP Access before the public can purchase

• Cost and Term savings when you work with us

• Floor plans, pricing and incentives to make an informed decision

• Our condo expertise regarding neighbourhoods, finishes, upgrades and more

• Property management options so your rental purchase

VIP Condo & Pre-‐Construction Website

8


Condo Resales Slowing but New Condo

Sales Still Flying High

!

“Lets Talk Real Estate” Podcasts

I am thrilled to expand my online marketing to now include podcasts in addition to video.

The response to our “Let’s Talk Real Estate – Let’s Get Real Podcast series has been overwhelming. We are talking about topics submitted by the viewers and includes:

• Condo Corner

• Investors Corner

• Senior Corner

• Real Estate Updates

You can listen to these podcast at http://darlenedarragh.com/category/podcasts/

Toronto’s new-condo market is seeing sales soar while demand for existing condos has waned through the first five months of the year.

While one expert recently said high prices in the existing-condo segment are quelling demand for older units, a few factors are supporting recent strong sales gains for new condos, a new report suggests.

“The May sales for condos are a response to a large volume of new project openings, combined with the sharp drop in interest rates and the allure of continued rapid year-over-year price growth,” writes economist Will Dunning, chief economist of Mortgage Professionals Canada, in an independent report.

Dunning is responding to the latest new-home sales data from Altus Group that the Building Industry and Land Development Association (BILD) released this week.

According to BILD, new condo sales surged 76 percent on a year-over-year basis in May, with homebuyers snapping up 3,790 units. These new units are in low-mid- and high-rise developments as well as lofts and stacked townhouses.

Based on May’s tally, Dunning pegs the annual rate of new-condo sales at 40,600 units. “This is the 7th best monthly sales rate of the past 38 years!” he exclaims, before noting this comes on the heels of sluggish activity.

The benchmark asking price for a new condo was $779,687 last month, an increase of 2.8 percent from a year before.

Meantime, the average selling price of an existing condo was $590,876, rising 4.9 percent annually, according to the Toronto Real Estate Board.

Dunning suggests that a lack of available completed new condos is fueling interest in the resale corner of the market, pushing prices higher.

“An additional consideration is that completions of new condo buildings have been depressed recently, which means that there are fewer new units that could be offered for resale: this is supporting continued price growth,” Dunning writes.

Source: Livabl (Josh Sherman)

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Residential Only Sales & Dollar Volume According to District

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“Now is the time to list your property with the inventory

being so low”.

Contact us at 905-484-4653

for details

2017 President Club Award

Darlene Darragh President Club Award Winner 2017

Award Winning Real Estate Broker 2013 - 2016

Promises Kept, Results

Delivered

For us awards are recognition of the hard work and dedication we show towards our clients. We are thrilled to be once again honored with such a prestigious award. Listed below are the most current awards (we don’t want to bore you with years beyond the last 2 years). We truly owe this award to all of you who have chosen to work with us. President’s Club Award (2017) – Right At Home Realty Inc. Brokerage

We are so excited to join Right At Home’s President Club in 2017. For us, 2017 was our best year ever.

Centurion® Award (2016) - Century 21 Dreams Inc., Brokerage

"To achieve Centurion status is to earn one of the most prestigious awards presented to a producer, individual, or team. Only a small number of sales professionals in the system ever reach this elevated status."

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SOLD

SOLD IN 2 DAYS ASSISTING SENIORS AND THEIR FAMILIES

We are especially proud when we are able to help seniors and their families assist their loved ones when a move is required. Being able to sell our recent 2-bedroom condo listing on Kerr Street, Oakville in 2 days was another example of how we cherish our relationship with our clients. We are so pleased to welcome back repeat clients and their families and this again was an example of why being a ‘relationship team’ not just a transactional group is so important to us.

RECENT RENTALS

During the last several months we have been very pleased to be able to help local and relocating families find rental accommodations. We stress to anyone working with us to have the required paperwork ready because the rental market is extremely competitive often resulting in multiple offers.

Darlene Darragh, Sales Representative

Your trust means so much to me

My experience, dedication and attention to detail throughout the

entire sale and/or buying process will provide you with the results you

expect.

Darlene Darragh Broker

Right At Home Realty Inc., Brokerage

Office: 905-637-1700

Direct: 905-484-4653

[email protected]

www.DarleneDarragh.com

www.DarleneDarraghHomes.com

www.LuxuryCondos.realestate

Selling your home is a privilege.

Real estate is my passion because I truly believe that once my clients’ home life is settled, everything else falls into place.

With a passion for homes and over 30+ combined years experience in real estate sales, communications, marketing, negotiations, website design, social media marketing, relocations, decorating and staging, I know your home and your needs are as unique as you are!

What kind of Broker am I? When most people think of the word “BROKER®“, the image of a professional helping someone buy or sell a home comes to mind. Of course, that’s a big part of the job! But as your BROKER®, I also consider it my job to help you enjoy your home between transactions. How do I do that? This informative newsletter is one way. Another is to invite you to give me a call when you have questions about the real estate market or want to know the current market value of your home. If you need some work done around the property, I may also be able to recommend a good contractor from amongst the reputable home professionals I know. Is there any other way I can be of service? Please let me know!

darlene darragh, broker june 27, 2019 – issue 41 real estate market … · 2019. 7. 25. ·...

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