What Do Vaccines Mean for the Real Estate Market?

What Do Vaccines Mean for the Real Estate Market?

It is hard to imagine that in a pandemic, the Real Estate numbers have shot through the roof in the past 9 months. Nobody could have predicted that there would be a mass exodus out of city’s and move to anywhere but. 

When the pandemic started in March many of my clients opted to halt their Real Estate ventures and stay put. A month later, people started to feel cramped in their space and start looking beyond to see if they could afford a place with a backyard, some space and a home office. Many people did that and prices outside of the city core exploded. Prices also exploded all the way to Windsor and outskirts where nobody thought of. Find a nice peaceful town, with a backyard and pool, that’s what people did.
 
Places near the city with these features went through the roof, the reason being, it was outside enough of the city core, but had land and space inside an actual house. We are still seeing a trend going upward daily and right now. Each sale spurts the market. 
We’ve just gotten approvals for vaccines, while this is going to take time to get people vaccinated and many will not take a shot, what does this mean for the Real Estate market?
 
I have a few ideas, but like anything anybody knows, I am not a psychic. No matter what anybody tells you, they don’t know the future and this year is a clear example of that. 
 
For starters, when they open immigration, the condo market will come back. That means that condo prices will stop dropping, and investors will stop dumping their condos. 
The government is also talking about increasing the immigration allowance to make up for the lack of it this year. 
Immigration will affect students coming back to school in the fall. Regardless if students go to actual school or not, many will still want to come into the country and sign leases. Some might think this is not correct but many students come and sign 2-5 year leases with certain places, so they have a place secured for their duration of their term. Some students get grants and scholarships which pay them to be at school, so many will want to take advantage of that. Regardless schools opening is a big boost to the Real Estate market in major cities. 
Vaccines mean that things will be somewhere back to normal. Concert, events, Travel, cottages, tourism, even within our own country will start to get the economy going. Its a domino effect. 
Interest rates are so low right now, and that is why the market has been crazy. Why not upgrade your place and keep your payment the same? I keep hearing from people who keep saying they just re-negotiated their mortgage rate. 
So what do vaccines mean to Real Estate? it means next year could top the record year this was. 

READ RECENT BLOG & ARTICLE POSTS BELOW

What Do Vaccines Mean for the Real Estate Market?

What Do Vaccines Mean for the Real Estate Market?

It is hard to imagine that in a pandemic, the Real Estate numbers have shot through the roof in the past 9 months. Nobody could have predicted that there would be a mass exodus out of city's and move to anywhere but.  When the pandemic started in March many of my...

read more
Price Drop for Condos here’s why

Price Drop for Condos here’s why

This year has definitely been a very interesting year for Real Estate in Ontario, Canada. While most people thought that Real Estate prices would plummet everywhere, it didn't. in fact in many areas of Ontario it has gone bananas. Places like Windsor and little towns...

read more
Top Features Requested In Homes Right Now

Top Features Requested In Homes Right Now

Since people are pretty much going no where right now and for the past 9 months, people are starting to re-evaluate what they want in a home. They are re-evaluating where they want to live, and how their future might be in the next few years. Many are moving out of...

read more
Virtual Staging

Virtual Staging

There has been a lot of advances in technology this year, and one of the areas is virtual staging. It has come down so much that some agents are looking at this as viable alternative to staging, rather than have the place look empty on photos and videos. In my...

read more
Price Drop 30% put into Perspective

Price Drop 30% put into Perspective

The prices of sales in the GTA have come down 30% from last year. Let's put this stat into perspective. The prices from January to April sky rocketed and then came down after that. Of course they are going to be a lot lower since the prices jumped so much. The media...

read more
Will the Market Bounce Back This Year?

Will the Market Bounce Back This Year?

The Liberal Government both at the Federal and provincial level as well as Mayor of Toronto seem hell bent on bringing down the prices of real estate to make it affordable for everybody. In some imaginary world this is going to stick. The problem is with their plan is...

read more
Are You Ready For Your Information To Go Public?

Are You Ready For Your Information To Go Public?

I read the articles, I read the comments, people want information. They want it all. That is the new way of doing business. They want all of the information that real estate agents have access to, and they want it for free, and they want it now. People think they have...

read more
ADDITIONAL COSTS WHEN BUYING A HOME

ADDITIONAL COSTS WHEN BUYING A HOME

The purchase price of your home is only one of the costs you'll encounter. Here are other possible costs you need to consider:   Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you're going to need mortgage loan...

read more
Over Rated Home Features

Over Rated Home Features

When I do an open house or put a house up for sale, I always get a few questions about features that I always say, why do you want that. Here they are: 1. Central Vacuum: Why do you want to lug around a snake and try to clean the house? Its simple, its called Dyson....

read more
Uber is Not Like Real Estate!

Uber is Not Like Real Estate!

I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...

read more
Transit Solutions Would Help Lower GTA Prices

Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

read more
Why You Should be Underpricing Your House For Sale?

Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

read more
People Will Be Begging to Go Back To Work. Real Estate Up?

People Will Be Begging to Go Back To Work. Real Estate Up?

It’s pretty bleak right now. Nothing is positive in many people’s minds. People are stuck at home, people are stuck home schooling their kids, people are out of work and the list goes on and on. 

The state of commercial real estate is in dire straits like we’ve never seen before, businesses boarded up, and the ones still in business are hanging by a thread. 

There will be hope coming when things go back to normal and businesses that once would never thrive will. 

Have you ever wondered why the stock market goes down and everybody cries but then a few days later the stock market comes back roaring with a vengeance to break records. It just happened. The same thing will happen with businesses and people in general. 

At the beginning of the pandemic when people started working from home everybody loved it. That was the general sense. I don’t have to go into work, I don’t have to travel, I don’t have have to spend money, dress up, and talk to anybody. Now the general sentiment has change from what I hear. I’m sick of these stupid zoom calls everyday, I’m sick of getting interrupted by everybody in the house. I miss having lunch. I miss having lunch meetings. I miss shopping for Christmas presents after work. It’s happening and I’m hearing it almost everyday. 

As human beings we crave interacting with people. It’s why depression and suicide is at an all time high. At the forefront of our interactions, is people, we need to be around people to survive and thrive, not isolated in a room with a computer. 

When the vaccines & quick tests bring this pandemic to its knees of submission, life is going to burst ten fold and people are going to opt into going back to work at an office, not at home. 

 

pictures courtesy of John Ryan

Price Drop for Condos here’s why

Price Drop for Condos here’s why

This year has definitely been a very interesting year for Real Estate in Ontario, Canada. While most people thought that Real Estate prices would plummet everywhere, it didn’t. in fact in many areas of Ontario it has gone bananas. Places like Windsor and little towns with cheap real estate prices suddenly were doubling and tripling in value over night. These are phenomena that we’ve only seen in the Greater Toronto Area. Houses while always in demand, are almost impossible to find and afford. The one casualty that has come from the pandemic is condos. Here’s why.

1. Immigration: Condos have become the first vehicle into the housing market for many people either coming to Canada. It is the cheapest and lowest form of real estate and generally if you live in the city you do not have to own a car, you can use public transportation. Since immigration has a been totally stopped, this whole pool of buyers are not there. 

2. Investors: An easy way to get into real estate investing is to buy a condo that is set to be built in a few years, and enjoy the easy pay options most builders offer. It’s a no brainer. When the pandemic started the Ontario government said that landlords could not evict tenants and tenants didn’t have to pay their rent. This may have stopped for now, but many landlords thought that now is the time to take my money and run, put that money into stocks, put it into my own house, or take the money sell my two or three properties and buy a house. Basically investors are dumping their condo properties. 

3. Students: This goes hand in hand with immigration & investors, but there are also domestic students who go from other cities, provinces to come to Toronto to go to school at one of the major colleges or universities. Many schools are closed and online classes are taking over. 

4. Working from home: I’m sure if I look for a stat it would be staggering at how many people and companies are working from home. I also think it will stay that way to a degree. (More on that later) Everybody is working from home, many don’t have a choice. So if people are working from home, why do they want to be in the city? They don’t need to be, so for the price of their condo, they can buy a house with a lawn, a pool, and space to enjoy. 

5. Everything is closed: There’s no baseball games, no hockey, no basketball, no concerts, no movies, no nothing. You get it and know there is really no reason to live in a city right now if there is nothing to do in the city but walk outside. Many things that are appealing of city life right now are just not there. 

All of these points above are all in combination together, one reason or another, and that is why there is such a dumb of condo inventory right now. It’s the perfect storm for prices to drop to where they are. This is not a phenomena just in Toronto, it is all over the province and I suspect everywhere such as New York. 

 

pictures courtesy of John Ryan

Top Features Requested In Homes Right Now

Top Features Requested In Homes Right Now

Since people are pretty much going no where right now and for the past 9 months, people are starting to re-evaluate what they want in a home. They are re-evaluating where they want to live, and how their future might be in the next few years. Many are moving out of the city and looking for bigger homes, and also looking for specific features. Here are some features that buyers are putting at the top of their list:

1. Finished basement with bedroom & Washroom. I must’ve answered this question a million times in the past 9 months. Does it have a finished basement and a bedroom? Why? Everybody is either using it for a nanny, a parent, or a teenager that needs some space. 

2. Office: Everybody is working from home, so they need a space to work in. 

3. Pool: Since most pools are closed, and or people don’t want to navigate going to a public pool, this has been a top selling feature this year. Jacuzzi’s have also been up there. Pool prices have gone up like crazy and pool sellers have been sold out until next year. Value of this feature has also gone up due to the popularity of it. 

4. Outdoor space: Since people are stuck inside, people need somewhere to go. Many people I see have bought pets. Pets need somewhere to go. All this equate to having some outdoor space and the reason people are leaving the city condos to buy places where there is a backyard and space to walk in peace. 

5. Home Gym, Movie Room, Entertainment room. Generally when people are looking for a finished basement this is what they would put in the basement. It makes sense since all of those items are closed right now. 

6. Large Kitchen Space: Im adding a bonus, people are all cooking at home right now, discovering new ways to make cookies and home made bread. They need space to do that. 

pictures courtesy of John Ryan

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Selling Your Investment Property? Some Things to Consider.

Selling Your Investment Property? Some Things to Consider.

It’s an easy decision. Sell the extra investment because right now its down. I’ve spoken with many investors and I get it. Here are some reasons why you shouldn’t be selling your investment right now that you may not be considering. 

 

 Right now investment properties and rentals are at an all time low. Nobody wants to   deal with those renters with all of their new regulations. Nobody. Here’s the thing, you  might want to think about keeping your property if you can. 

Some negative reasons for not selling right now. You will have to pay capital gains on that property. You will get the lowest price possible right now. You may have some government funds you are eligible for because you are a landlord. You may be eligible for some government grants. You may able to use this property as a right off. Depending on your business structure that is doing well right now, you may be able to use this property as a loss = pay less taxes next year. 

Do you sell a stock when its at its lowest? Well that’s basically what you would be doing if you sold the property now. Think about how much in demand it will be in next year when the market goes bananas everywhere because people will be needing places to live. 

If you can hold on to whatever investment property you have, I would right now. It’s not the time to sell unless you have to. I think next year will be the year to sell it and maximize your profit. 

pictures courtesy of John Ryan

Virtual Staging

Virtual Staging

There has been a lot of advances in technology this year, and one of the areas is virtual staging. It has come down so much that some agents are looking at this as viable alternative to staging, rather than have the place look empty on photos and videos.

In my personal experience, I think that this is setting your potential buyer up for a disaster when they go visit the house. If they don’t visit the house and buy the property online line (ya right!) then it is a great way to showcase the house.

Here’s the thing, when they go to the house, and see empty rooms, they are going to be disappointed, it is deflating to expect to see a beautifully arranged house, then go and you look at empty rooms.

While some people might have an imagination, some and most people don’t. I learned this the hard way of being in this business for a while. You say “oh, its just a little clutter, image the house without all this garbage and plants everywhere”. That doesn’t work at all, or I would say, Imagine a chair here, and a chair there,” meanwhile there is a huge table thats in the way.

There are some special people out there, that can imagine what a house might look like when they get there, and they may also refer back to the photos with the virtual furniture, but lets face it, its a new gimmick that cheap agents and home sellers are going to start using because they don’t want to properly market their house.

The bottom line is, you want to sell your house and get the most for your home. Stage it, clean it, renovate it and stop being cheap with the agent and the stagers. Spend the money, and the money will come back that the house deserves.

READ RECENT BLOG & ARTICLE POSTS BELOW

What Do Vaccines Mean for the Real Estate Market?

What Do Vaccines Mean for the Real Estate Market?

It is hard to imagine that in a pandemic, the Real Estate numbers have shot through the roof in the past 9 months. Nobody could have predicted that there would be a mass exodus out of city's and move to anywhere but.  When the pandemic started in March many of my...

read more
Price Drop for Condos here’s why

Price Drop for Condos here’s why

This year has definitely been a very interesting year for Real Estate in Ontario, Canada. While most people thought that Real Estate prices would plummet everywhere, it didn't. in fact in many areas of Ontario it has gone bananas. Places like Windsor and little towns...

read more
Top Features Requested In Homes Right Now

Top Features Requested In Homes Right Now

Since people are pretty much going no where right now and for the past 9 months, people are starting to re-evaluate what they want in a home. They are re-evaluating where they want to live, and how their future might be in the next few years. Many are moving out of...

read more
Virtual Staging

Virtual Staging

There has been a lot of advances in technology this year, and one of the areas is virtual staging. It has come down so much that some agents are looking at this as viable alternative to staging, rather than have the place look empty on photos and videos. In my...

read more
Price Drop 30% put into Perspective

Price Drop 30% put into Perspective

The prices of sales in the GTA have come down 30% from last year. Let's put this stat into perspective. The prices from January to April sky rocketed and then came down after that. Of course they are going to be a lot lower since the prices jumped so much. The media...

read more
Will the Market Bounce Back This Year?

Will the Market Bounce Back This Year?

The Liberal Government both at the Federal and provincial level as well as Mayor of Toronto seem hell bent on bringing down the prices of real estate to make it affordable for everybody. In some imaginary world this is going to stick. The problem is with their plan is...

read more
Are You Ready For Your Information To Go Public?

Are You Ready For Your Information To Go Public?

I read the articles, I read the comments, people want information. They want it all. That is the new way of doing business. They want all of the information that real estate agents have access to, and they want it for free, and they want it now. People think they have...

read more
ADDITIONAL COSTS WHEN BUYING A HOME

ADDITIONAL COSTS WHEN BUYING A HOME

The purchase price of your home is only one of the costs you'll encounter. Here are other possible costs you need to consider:   Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you're going to need mortgage loan...

read more
Over Rated Home Features

Over Rated Home Features

When I do an open house or put a house up for sale, I always get a few questions about features that I always say, why do you want that. Here they are: 1. Central Vacuum: Why do you want to lug around a snake and try to clean the house? Its simple, its called Dyson....

read more
Uber is Not Like Real Estate!

Uber is Not Like Real Estate!

I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...

read more
Transit Solutions Would Help Lower GTA Prices

Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

read more
Why You Should be Underpricing Your House For Sale?

Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

read more

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