When the June sales numbers came in, I can’t say it was a surprise. For quite some time, I maintained the same message that there is not a better time to buy then the present. When in history have the rates been so low, supply somewhat up and the media sensationalizing everything to this extreme? Not even in the early 90’s have we had this type of market. “Breaking News” seems to be on every media outlet even for the smallest of things.
Now the buyers are simply tired of waiting. They accepted that not everyone will lose their job and that Canada is not in the same position of our American friends. We’re not the U.S. and immigration continues and consumer confidence is much improved. Even GM has re-emerged with a promise of a new improved and reinvented company.
Now we’re also back to multiple offers. One of the reasons is because all the buyers that have been playing a wait and see game are no longer waiting. We now have over 6 months worth of buyers and many of the homes we had listed have required us to book dozens of showing appointments within a 2-3 day period. We’re receiving 6,10,15 offers making them sell over asking price. In many desirable Toronto neighbourhoods, we have realized or even surpassed 2007 values again. The lower end is fueling the market and now we’re seeing new life in luxury homes as well. A home recently sold for close to 10 million dollars. Another true sign that the market is revitalized and no longer controlled by the media. The Toronto Real Estate Board reported a 27% increase in sales over last June. At RE/MAX Ultimate we realized an increase of over 39% over this time last year.
Even though the market has returned, we can’t get ahead of ourselves. Representatives at many banks have informed me that full 5 day conditions for financing are still needed to satisfy turnaround, due diligence and approval. Financial institutions are doing appraisals and even though lending has improved, turnaround time of 24-36 hours for approvals are just not possible. The new market requires us to make sure that the clients are fully prequalified to make sure that homes will close based on the appraisals.
RE/MAX Ultimate Realty Inc., Brokerage