Toronto Real Estate Market Report
Ontario Real Estate Association (OREA) has been pushing for Transparency.
As reported recently on CP24 and previous to that by CBC, OREA has been holding consultation with the government to create more transparency with regards to bidding prices. Their timeline is now to have an informal decision by March 15 this year. They believe that this is a better way to buy and sell real estate especially in Toronto. That is to say that if all the parties involved know the bidding price, people can then, therefore make a more informed decision.
At SoldHistory.ca we believe in this as well. Hence our core belief that buyers and sellers should be more empowered in today's real estate market. We also aim to create transparency by helping people access for free all of the historical sale data in Toronto and surrounding cities.
On March 15, 2019, there is a good possibility that more transparency will become a reality, even if it is not mandated and is just an option agreed upon. Biddings may no longer exist and home purchases will be more valued on what it offers and general affordability.
Just recently we encountered many multiple offer scenarios involving a purchase of sale. One of the first-time buyers overbid enormously just to get the home, the appraised value was not even close, so now the buyers will have to pay the difference to get a mortgage.
Thankfully for our first time buyers, we avoided multiple offers by viewing a property slightly above our budget, negotiated down the price and secured it.
Research shows that this will be an important step in modernizing our current process, and allowing us to prevent price escalation and inflation.
There is also an indication that the Quebec Federation of Real Estate Boards is also looking at these rules and should have a recommendation within the next few weeks.
For now, the market remains optimistic, sales for January show that there is an uptick of 0.6 per cent compared to January 2018 and home prices are up by 2.7 per cent compared to January 2018.
If we get more transparency we expect sales to pick up the pace a lot more and home prices to reach an increase of 5-15% this year.
Happy shopping or selling!
Sold History Team