Welcome guest.  ( Sign in )

Thinking about selling?

April 3, 2017 - Updated: April 3, 2017

Is now the time to sell?

 
 

One group of data scientists is arguing speculation isn’t the issue in Toronto’s hot housing market, overbuilding is. That’s great for sellers; not so much for buyers.

“Still convinced that the city of Toronto needs to build more housing to bring down prices? It’s a growing city, and housing all these people is applying pressure to prices. Makes sense, but unfortunately there’s no data to support that,” Stephen Punwasi, Better Dwelling’s chief data nerd, wrote in a data analysis piece last week. “Actually, the data shows the opposite. Basic analysis shows the city might be overbuilding by over 40% for the current rate of growth.”

That argument directly contradicts what many in the industry are touting.

The Toronto Real Estate Board, for example, argues there are supply constraints in the city.

"The listing supply crunch we are experiencing in the GTA has undoubtedly led to the double-digit home price increases we are now experiencing on a sustained basis, both in the low-rise and high-rise market segments,” Jason Mercer, TREB's Director of Market Analysis, said in March. “Until we see a marked increase in the number of homes available for sale, expect very strong annual rates of price growth to continue."

That’s not the case, according to Better Dwelling.

The team argues population growth is slowing – from 9% in 2011 to 6.2% in 2016 – and that the number of people living in households has remained relatively steady.

But building has continued.

“Despite slower population growth in the last Census, building completions accelerated. From 2012 to 2016, Toronto CMA saw 175,825 homes completed,” Punwasi wrote. “This represents a 9.75% increase from the period prior. That’s a home for every 1.96 people that moved to the area, and 41% more than the average household size. That would have to be a pretty wide margin of error from all levels of government for there to be a ‘shortage’ of homes.”

So who will live in these homes?

According to Better Dwelling’s “robo-researcher,” one-third of homes listed for resale in Toronto have never been occupied. It also estimates nearly 100,000 homes sit vacant.

“This doesn’t mean that prices should necessarily come down. Commodities are worth what people are willing to pay for them,” Punwasi wrote. “It does mean that no amount of building will bring down prices without a change to buyer mentality. Great time to make money as a seller, bad time to be a young person trying to start out in this city.”

 

Visit us at Durham Bungalows.ca for all your Real Estate needs!

 

source: http://www.canadianrealestatemagazine.ca/news/is-now-the-time-to-sell-223657.aspx 


Tagged with: selling home sales
| | Share

Prepare for an Emergency Part 2

Originally posted on: June 13, 2017
Last updated on: June 13, 2017
Filed under: emergency safety
COLLECT IMPORTANT DOCUMENTS Organize important documents in one place—such as an accordion folder or fireproof safe—so you can ...

Prepare for an Emergency Part 1

Originally posted on: June 8, 2017
Last updated on: June 8, 2017
Filed under: emergeny house damage
KNOW THE RISKS No matter where you live, your region may be susceptible to one or more emergency situations or weather hazards, including: e ...

Looking for a new place?

Originally posted on: May 30, 2017
Last updated on: May 30, 2017
Filed under: homes for sale real estate
The 5 priciest homes in one of the country’s hottest markets by Justin da Rosa, 29 May 2017 ...

B.O.C. Interest Rate announcement.

Originally posted on: May 24, 2017
Last updated on: May 24, 2017
Filed under: bank of canada interest rates
Bank of Canada makes interest rate announcement by The Canadian Press. 24 May 2017 ...

Why Homebuyers should work with an Agent

Originally posted on: May 18, 2017
Last updated on: May 18, 2017
Filed under: home buyers working with an agent
5 REASONS MOST HOMEBUYERS CHOOSE TO WORK WITH AN AGENT In most cases, your home is your most valuable asset, and it makes sense to ...


Durham Bungalows
Brokerage
Independently owned and operated.

420 Green Street #105
Whitby, ON L1N 8R1


Phone: 1-905-995-0460
Powered by Lone Wolf Real Estate Technologies (CMS6)