Toronto Loft Conversions

Toronto Loft Conversions

I know classic brick and beam lofts! From warehouses to factories to churches, Laurin will help you find your perfect new loft.

Modern Toronto Lofts

Modern Toronto Lofts

Not just converted lofts, I can help you find the latest cool and modern space. There are tons of new urban spaces across the city.

Unique Toronto Homes

Unique Toronto Homes

More than just lofts, I can also help you find that perfect house. From the latest architectural marvel to a piece of our Victorian past, the best and most creative spaces abound.

Condos in Toronto

Condos in Toronto

I started off selling mainly condos, helping first time buyers get a foothold in the Toronto real estate market. Now working with investors and helping empty nesters find that perfect luxury suite.

Toronto Real Estate

Toronto Real Estate

For all of your Toronto real estate needs, contact Laurin. I am dedicated to helping you find that perfect and unique new home to call your own.

 

Toronto real estate sales exceed 2008

Tony Wong – Yourhome.ca

No one has been more surprised by the strength of the Toronto real estate market than the experts who had forecast a dramatic slowdown this year.

“We certainly didn’t expect the market to return this quickly,” said Shaun Hildebrand, senior market analyst for the Canada Mortgage and Housing Corp. “It has caught a lot of people by surprise.”

Well, it’s now official: this year’s cumulative existing home sales surpassed last year’s sales in the first two weeks of August, according to figures released yesterday by the Toronto Real Estate Board.

In the first two weeks of the month, Toronto real estate agents reported 3,832 sales, enough to put the year-to-date figure at 54,303, above the 54,138 recorded in 2008.

“Sometime in August – we don’t know exactly when – we surpassed last year’s sales,” said Jason Mercer, senior manager of market analysis for the board. “We started to see the market come alive in May and it just took off from there.”

The strength of the rebound is even more surprising, since the year started off with sales down by 50% in January. The market started to show positive territory for the first time only in May, rising 2%, before blasting off with an increase of 27% in June and 28% in July.

Comment: Those who followed me in the spring will note that I predicted this. Not a rise of this magnitude, but I did say that things would turn around. Once mortgage rates go into the 3.5% range, I knew that was going to set off a frenzy. And it did. If listings weren’t down so much right now, I am sure we see even larger records being set.

Despite the economic downturn, analysts now expect sales to match or surpass last year’s level of 74,558 sales.

Comment: I said last month that 2009 would handily beat the 2008 numbers. Glad the “experts” now agree with me.

“The year-over-year declines were incredibly steep at the beginning of the year, but the last couple months made up for a lot of lost ground,” Hildebrand said.

CMHC is expected to release a revised forecast next month. In May, the federal agency was forecasting 60,000 sales this year, based on the recession. But that figure, which will likely be surpassed in September with three months left in the year, now looks much too low.

Hildebrand said sales are being driven almost entirely by low interest rates and pent-up demand from home buyers who stayed out of the market during the winter.

“The question is how much more demand will there be when interest rates go up when the economy improves?” he said.

Comment: Well if the economy improves, people will be better off, thus able to handle higher interest rates. That is the way things work. When the economy is bad, rates are low. When the economy is good and people have jobs and money, then rates are higher. It all works out to the same thing, affordability stays the same.

As well, some sales that would likely be made next year are being pulled forward to this year, which may mean lower sales in 2010, he said.

Comment: No, sales that did not happen last year and early this year are finally happening. The rise is not due to people buying now rather than next year. It is people buying now instead of last month or last year.

While this year will likely surpass last year, Hildebrand cautions that momentum is “clearly shifting to the downside” for sales next year.

Comment: What? How could anyone say that sales will go down next year? Momentum is going nowhere but up right now. We have had 3 months in a row with sales and prices rising, with half of August following the same trend. Everything is pointing higher, not lower… this is why I question the opinion of so-called experts and analysts.

“We are selling at a rate that is considerably higher than the economic fundamentals would suggest. We’re bringing buyers in from the future to commit to homes today.”

Strong demand in the past several months has boosted average prices 3% in the first two weeks of August to $383,796, compared with the same period last year.

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Contact Laurin Jeffrey for more information  –  416-388-1960

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