In June, we saw business and social activities open up, to varying degrees, across the province of Ontario. The real estate market did much the same, rebounding from May's low transaction volume brought about by the forced restrictions of the pandemic.

Let's take a look at how the June market performed.

In May, I reported a COVID-driven 53.7% decline in residential transactions compared to last year and observers were reporting a balanced market. However, there was a 3% increase in prices and I witnessed multiple offers for semi's and detached properties and entry level condos, suggesting for central Toronto, a seller's market.

That trend was evident with this week's Toronto Real Estate Board report showing a bounce back in transactions, with June's total sales only coming in 1.4% behind June of last year. Prices increased 11.9% from June 2019 and 9.8% from last month, moving the average price from $831,882 to $930,869.

Looking ahead, for July at least, I expect to see the sellers market continue in Central Toronto. The market for the rest of 2020 and beyond will be dependent on how we manage the pandemic and thus how much the economy recovers.  Therefore, navigating real estate markets will require agility and timely monitoring of the data and shifting trends.

Residential transactions for May 2020 were down 53.7% compared to the previous year and the average selling price increased 3% for that period.  We expected a banner Spring season in 2020 and no doubt COVID-19 and its challenges contributed to these results.  Less listings on the market generally causes more competition for those properties and despite the assumption that less buyers are out looking to buy given the COVID crisis, I am witnessing and/or participating in multiple offers for semi's and detached freehold properties and entry level condos.  

Changes were just announced from Canada Mortgage and Housing Corporation, CMHC that effective July 1st, 2020.  In order to mitigate its risk of CMHC insured mortgages, new applicaitons for homebuyers will have the following changes as taken from its June 4, 2020 press release.

• Limiting the Gross/Total Debt Servicing (GDS/TDS) ratios to our standard requirements of 35/42;
• Establish minimum credit score of 680 for at least one borrower; and
• Non-traditional sources of down payment that increase indebtedness will no longer be treated as equity for insurance purposes.

These changes may cause a run-up on purchases for those who wish to close before the end of this month and who are effected by these changes.  I expect the condo market may see some increased volumes over the next few weeks in the first time buyer size category.

The IPSOs consumer intention polling results in May indicated that 27 per cent of GTA households were likely to purchase a home over the next year, according to Michael Collins, Toronto Regional Real Estate Board President.  

These facts indicate that currently, we remain to be in a sellers' market and as we continue to adapt to buying and selling real estate in the the GTA during COVID, this sellers' market should continue.

The City of Toronto is many things for many people.  I moved here in the 80s and have never looked back. People are moving here for jobs, relationships, school or perhaps they just want to try something new and will call Toronto home for a few months to a few years.  Many are Consultants, Professors, Bankers, Snow Birds, and Athletes. Some are in town working and acting in our vibrant film and television industry and others are returning to care for aging parents.  I have met many people who are waiting to complete a large renovation and some who are just not ready to buy their new home --- yet.

Whatever the reason, there are many options and solutions in considering a short-term rental:  

• Home sharing options such as Arbnb, Bunz Homes, Couchsurfing.com, Homeaway.ca are handy options for those who want the Toronto experience without feeling like a tourist and are happy to forego room service and the costs associated with a hotel stay.
• Home Swap sites such as Intervac, HomeExchange50plus, Holiday Exchange Homes, to name a few, are plentiful and have worldwide affiliations.  The best feature is that they are specialized.  Matching Houses is a house swapping service specializing homes for people with disabilities and others are for those over 50 or under 50, or LBGT.  Some have memberships, others charge a fee and many swap one house for another at no cost.
• Closer to home, real estate agents list and have access to furnished listings on MLS and can help find a suitable location for tenants.  For property they list MLS, they take care of vetting tenants, checking credit, confirm employment, check references and include provisions in a lease that sets out the possible issues that can arise when leasing or renting property.  I personally look at a lease as the way to provide the solution to an issue or problem before it happens.  Does a landlord really want to show up and change a lightbulb or is a tenant happier to be responsible for any replacements up to $40.00 and not have their landlord showing up for every little thing.  Or perhaps a housekeeper will come in and take care of minor items along with maintaining a consistent cleanliness level of the property. When a tenant and landlord agree to terms before an issue arises, it makes for a happier relationship between the two.
• Some people choose to go the Kijiji, Craiglist route.  This is not my favourite method because one just doesn't know who is on the other end of the ad but I have known many people who have had successful experiences renting from these sites.

Is a furnished, short term rental right for you?  Check out my video of a property I have currently listed in the College West area of Toronto.  This gorgeous two bedroom, with parking has a large terrace overlooking the College West treetops and is fully furnished, equipped with kitchen utensils, and linens and is available in August for up to two years.

Email me at JuliaMetus@RealtyExecutives.com or call/text me at 416 930 4445 and I can send you the full MLS listing with all the details.

Sit back, relax and enjoy this gorgeous video.

Julia Metus

Salesperson

Realty Executives Plus Ltd Brokerage

416 930 4445 Mobile

416 621 2300 Office

I have had the pleasure of living in many different neighbourhoods in Toronto and one of my favourites, is the the Roncesvalles Village.  Now affectionately referred to as "Roncy", the neighbourhood has a rich historical element beginning with the land being donated in 1873 by John Howard, Toronto’s first surveyor and a great Canadian architect.  Howard brought us Colborne Lodge, High Park, the Albany Club Building at 91 King St W and the old Bank of British North America, now the Irish Embassy Pub located at Yonge and Wellington, to name a few. This history is well described by the Roncesvalles BIA website.  Here's a link to read more.

What is new in the Roncesvalles Village is a lovely new mid size condo being developed for a Year 2020 Occupancy. Aptly named, "The Roncy" is an eight storey build by Worsley Urban with just 93 units consisting of one bedroom, one plus den, two bedroon and two plus den units with an intimate, boutique feel and a smart offering of ammenities.  The location provides convenient TTC access, local shopping, dining and entertainment and making it a great location for urban living with a neighbourhood feel.

Key Building Features: (as per developer's brochure)

• Concierge
• Fitness Centre with Cardio and Weight Equiptment
• Party Room with Patio Lounge with Fireplace, BBQ and Outdoor Area
• FOB Controlled Access and Security Cameras
• Automated Waste and Recycling System
• Bicycle Parking
• Eco-Friendly Green Roof
• Pet Wash
• Terraced Suite on Floors 4-8

For floor plans, more features and pricing or discuss how to buy a new development versus a resale condo, please contact me at 416 930 4445

RENDERINGS ARE ARTIST'S CONCEPT ONLY.  E. & O.E as reproduced from Developers Brochure

The Toronto Real Estate Board announced that the Greater Toronto area reported a record 9813 sales through TREB’s MLS® in August 2016.  There were 2 additional trading days in 2016 compared to 2015 with 7943 sales so the 23.5 per cent increase in transactions, translates to be closer to 13 per cent when the additional trading days are factored into the results.  Check out the graph below for the results for Toronto and neighbouring communities in the Greater Toronto Area (GTA)

Demand for ownership housing continues with a strong regional economy, growth in average earnings and low borrowing costs contributing to this demand.  In addition, the number of new listings is down for the same period last year.  Sellers appear to be choosing to "stay put" and renovate versus upsize to fit their needs, given the very competetive buyers market.  It may be very easy to sell your property for top dollar in this market but the low number of properties for sale, makes finding your next home and competing with other buyers for your new property, a much more difficult task. First time buyers entering the market with downpayments (from 5% to under 20%) require Canada Mortgage and Housing Corporation (CMHC) insurance to get get access to interest rates of buyers with downpayments of 20% or more.  While getting the competetive rates is helpful, they are having a difficult time competing with those buyers with higher downpayments who are more likely to put offers on properites without financing conditions.  Because sellers love certainty, I have seen firsthand that they are accepting offers from buyers with lower offers but with no financing conditions.  

The MLS® Home Price Index (HPI) for August 2016 was up by 17.2 per cent on a year over year basis to $710,410.  The MLS® HPI

is calculated using a sophisticated statistical model that is a hybrid of both the repeat sales and hedonic price approaches.  The MLS® HPI takes into account a home’s quantitative attributes (e.g. the number of rooms it has; square footage etc.) and qualitative attributes (e.g., whether it has a finished basement, a view etc.).  You can read the full report here.  If you care to review previous reports, contact me at JuliaMetus@RealtyExecutives.com