Posts Tagged ‘Real Estate Investment Network’

Days on market in GTA a critical indicator – Guest Post
Posted by Don Campbell | November 27, 2016
Days on market in GTA a critical indicator – Guest Post

Here’s a simplified way to look at Canadian housing markets:

1. Average price of real estate is a lagging indicator,
2. Economic Fundamentals are a leading indicator
3. Days-on-market are a market trend indicator

Yes, of course there are many other factors that play into the headline grabbing numbers that make the GTA housing market seem out of control. These include the “Places to Grow Act”, the condo demand cycle, transportation improvements, in-migration and on and on.

But, today we are going focus on a statistic that is either not spoken about much… OR used incorrectly.

In this “Special Guest Post” we have asked our friends at TheRedPin to analyze the GTA for days on market, including trends of specific neighbourhoods. Enjoy this look into the future direction of the GTA market:

Days On Market – What’s Really Going On in GTA?

While most headlines are quick to zero-in on property prices, and how much they spike or drop year-to-year, days on market is just as useful an indicator of where housing is – and where it’s heading.

A measure of how fast or slow a property for sale gets snatched off the market by a buyer, DOM is key to deciphering whether conditions are those of a buyer’s or seller’s market and serves as a litmus test of where the relationship between supply and demand lies.

TheRedPin, a Toronto-based full service real estate brokerage, recently broke down some interesting facts around days on market specifically in the GTA.

  • Where do homes spend the fewest days on market in the GTA?

 After tracking down 17 major cities, TheRedPin highlighted how fast homes sell across the Greater Toronto Area. To keep an even playing field, the brokerage only factored in detached homes rather than pooling all home types together.
Click on this picture to get full interactive map

Click on the Map above to see the full interactive map

 In Q3 2016, the cities of Whitby and Ajax saw detached homes sell the fastest, with an average of just 10 days on market. On the other end of the spectrum, King City and Burlington saw detached properties spend the longest days on market, with average DOM hovering around 30 and 24 respectively.

  • Days on Market and Seasonality

Just as prices can drastically fluctuate based on seasonal highs and lows during the year, the same is true for days on market.

For example, in the frigid cold winter month of January, where the real estate market experiences a considerable slowdown, average days on market tends to plummet. Especially when compared to the ultra-competitive spring market.

When isolating 6 years of GTA housing market statistics, TheRedPin found:

Real-Estate-Days-on-Market-Statistics (1).png

Higher days on market suggests homes take longer to sell, competition isn’t as fierce and conditions are more in favour of buyers. Therefore, house hunters in search of a deal can often use seasonality to their advantage by strategically timing their purchase to fall in winter.

In fact, when highlight how average sold prices compare between January and May, TheRedPin found a $60,000 gap.*

Sellers who put their property on the market in winter are usually more motivated to sell given they’re choosing to list in the off season. Whether it’s due to a sudden move for a new job or for family reasons, sellers in January tend to want to flip their property quickly and are often willing to take a dent in the asking price to do so.

  • Days on Market and Home Type

When pitting the detached family housing market against condominiums, some clear trends arise.

For one, resale values for detached residences outpace the high rise market considerably.

In Q3 2016, detached homes in the GTA saw values climb a whopping 22 per cent year-over-year. Condo apartment on the other hand, saw a far more moderate but still impressive 9.6 per cent increase.

In a similar pattern, days on market for detached homes sits just below 15, while DOM for condos hover around 25.

As with almost everything – supply and demand have a huge role to play. Tighter inventory in the family homes sector means that not only do values climb faster compared to high rises, but properties also take considerably less time to sell too.

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Across Canada City by City Commentary
Posted by Don Campbell | August 18, 2016
Across Canada City by City Commentary

In this Video segment, we have a rapid fire real estate Q & A on specific cities across Canada. Take a watch to see how your market is going to perform in the coming 12 months

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Warning: A Scary Future is Unfolding and No One is Stopping It
Posted by Don Campbell | August 7, 2016
Warning: A Scary Future is Unfolding and No One is Stopping It

Subtly and not so subtly, our current governments are setting up systems that will make us increasing more reliant on them. This decades long plan is not some crazy conspiracy, it is simple to see when you look at financial plan combined with demographics.

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The Path To Success Is Paved With Many Cobblestones
Posted by Don Campbell | July 21, 2016
The Path To Success Is Paved With Many Cobblestones

Failure and mistakes are a part of any sustainable success journey. With the IDEAL Formula you can use the bumps in your journey to catapult you forward where others would simply give up.

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Solutions To The Inevitable Real Estate Paper Storm
Posted by Don Campbell | June 25, 2016
Solutions To The Inevitable Real Estate Paper Storm

The amount of paperwork real estate investing can be overwhelming unless you have a simple and effective system that controls it all. Once it is in place, it not only saves you time, it also saves you money at tax time.

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8 Steps to Successful Investing with Family and Friends
Posted by Don Campbell | June 9, 2016
8 Steps to Successful Investing with Family and Friends

Investing with Family & Friends The 8 Steps to Success
“It was the best of times, it was the worst of times.” This opening sentence to the classic book “A Tale of Two Cities” also can describe what can happen when family members with differing philosophies decide to work together in a business or in real estate investing together

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Lessons already learned from Ft McMurray Fire
Posted by Don Campbell | May 5, 2016
Lessons already learned from Ft McMurray Fire

Updates on the Ft McMurray fire situation – from an insurance and financing perspective. What does a Ft McMurray property owner do next? Here are some strategies

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Ft McMurray Fire Aftermath Conference Call
Posted by Don Campbell | May 4, 2016
Ft McMurray Fire Aftermath Conference Call

A natural disaster is occurring in Ft Mac, with many homes and properties devastated. What’s Next is the question… in this call we focus on “Property Insurance” what’s covered and what steps you need to take right now. Listen In

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What Do You Mean “It’s Not Always The Best Idea To Buy Where I Want To Live?”
Posted by Don Campbell | April 11, 2016
What Do You Mean “It’s Not Always The Best Idea To Buy Where I Want To Live?”

Step carefully as you enter BC Real Estate. In this throwback you will discover just how little the conversation changes in Vancouver around real estate

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How To Determine Where Canada’s Real Estate Is Heading
Posted by Don Campbell | March 3, 2016
How To Determine Where Canada’s Real Estate Is Heading

The real estate market works in cycles, and the tactics you are going to employ for your investment business are going to be dependent on the phase that the cycle is in.

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