Mississauga Real Estate BLOG

The number of home sales through the TorontoMLS system and the average selling price were up strongly in May compared to a year ago.

Total TorontoMLS sales for May 2014 amounted to 11,079 – a new high for the month of May. This result was up by 11.4 per cent compared to 9,946 sales reported in May 2013. The average selling price for these sales was $585,204, representing an 8.3 per cent year-over-year increase compared to the average price of $540,544 in May 2013.

We are now at the peak of the spring market when we generally see the greatest number of sales and the highest average selling prices. Based on the May statistics, buyers have been more active this spring compared to last year. Despite strong price growth so far in 2014, many households remain comfortable with the monthly mortgage payments associated with the purchase of a home, as borrowing costs have remained at or near record lows over the past few months.

Average selling prices varied across the Greater Toronto Area, depending on geography and home type. A detached home in the City of Toronto sold, on average, for $943,055. In the surrounding GTA regions, the average detached price was $648,439. The average price for condominium apartments was $401,809 in the City of Toronto and $307,307 in the surrounding regions.

The listings situation in the GTA did not improve this past May. With listings down and sales up compared to last year, competition between buyers increased. The result was price growth wellabove the rate of inflation, especially for singles, semis and townhomes.

It is also important to point out that even though the condo apartment market segment remains comparatively well-supplied, as new project completions have generally led to an uptick in listings, we have seen enough buyer interest to prompt strong condo price growth as well.

The basis of real estate is that a home is worth what a buyer is willing to pay.

Six months ago the word was out from various economic experts that Toronto home prices, Mississauga home prices, Oakville home prices and almost every other area in the GTA were going to decline between 10% to 30% in the upcoming year. In December those figures were revised to reflect a more modest drop of 5% – 10% in the first half of 2012. March reports indicate that the GTA market is overvalued and that some economists expect a correction of 20-25%. Seems to be a lot of confusion as to what the future holds.

I have never had an explanation of how one calculates that a home is overvalued. The basis of real estate is that a home is worth what a buyer is willing to pay. Now recently in Toronto a small bungalow was listed for $950,000 and sold for $400,000 over the list price. The sale was the talk of the neighbourhood and at first when I heard the news from my mother in law who lives in the neighbourhood I thought she must be mistaken. The news that night reported the sale exactly as had been reported by the neighbourhood grape vine. Turns out the home was purchased by Chinese immigrants. The news report on this sale went further to explain that the purchases by immigrating Chinese are on the rise as they find Toronto home prices, Oakville home prices and Mississauga homes prices to be a good deal. In the context of “a home is worth what a buyer is willing to pay”, in China that $950,000 home would be somewhere around $7 million U.S. dollars. Obviously then to someone from China that small bungalow is a real deal at $1,250,000. We are living in the best country in the world and in one of the best cities in the world. In comparison to other world class cities property in the GTA is still very reasonable.

Let’s look at the market itself. New listing activity is very tight. Although there seems to be a slight increase in the amount of homes coming on the market, the number of buyers entering the market continues to surpass the number of new listings. This has been the case quite regularly for the past year. Trying to find a home in Mississauga for a buyer is a full time job. Either the home is a wreck or there are 5 people wanting to put an offer in at the same time.

Economically there seems to be some light at the end of the tunnel for the U.S. economy. Maybe it’s just a blip but in the long term that can only be a positive factor for the Canadian economy. When the economy is good there is always a positive impact on housing and the real estate market. It either puts upward pressure on the prices or keeps it stable. I never heard of prices of prices going down in a good economy.

I suppose these economists who predict the decreases in home prices are using historical figures and very complicated formulas to determine where real estate prices are going to go. I guess I view that process like the providing a weather forecast. This winter was to be unusually cold and stormy weather. For some parts of the country that meant a frigid climate; while for others, it’s lots of rain and snow. It was to be a winter of “clime and punishment” with cold to very cold temperatures. Winter really never arrived and neither will those decreases.

Looking to buy or sell your home in Mississauga, Oakville, Toronto area? Don’t hesitate to contact the best Mississauga Real Estate Agent Cynthia Shaw.

52% of buyers said the kitchen had the most significant impact on their purchasing decision - effective staging will address this!

In today’s Mississauga real estate market the staging of homes prior to going on the market is quickly becoming a hot button. If you are considering selling your home here are some facts that may be helpful in determining whether to “stage” or “not stage”!

• 58% of buyers made a decision to buy after seeing 10 properties—effective staging keeps your house on the list of must-see properties.
• 54% of sellers are willing to spend more than $2000 to get their house ready for sale and of those, 25% were willing to pay over $5000—working with the right staging consultant maximizes your return on investment.
• 63% of buyers were willing to pay more money for a house that is move-in ready.
• 86% of those surveyed said storage space is important to potential buyers—effective staging maximizes space and spaciousness.
• Top three interior features for selling were freshly painted walls, organized storage space and current flooring—effective staging will address all three.
• 52% of buyers said the kitchen had the most significant impact on their purchasing decision.
• 79% of buyers indicated they would be willing to pay a premium for a home with an updated kitchen.
• Men (41%) are more likely to place a premium on updated décor than women (30%).
• 77% of people view homes first on the Internet.
• 75% of buyers who searched on the Internet went on to view or drive by the homes.
• 40% of paint sold is as a result of incorrect color choice—CSPTM have Staging Safe ColourTM palette specifically chosen for successful staging.
• When deciding to view a house, 78% of objective elements are generally pre-determined before viewing: they are location and size—both things are outside of a seller’s control.
• Elements that create 72% of the first impression inside the home are within the control of the seller—well-trained staging consultants know how to show these to their best advantage.
• Moderately priced home improvements, ranging from $80–$2800, made in preparation for sale, yielded the highest returns when a house was sold.
• Homes that were staged sold in 13.8 days.
• Homes that were not staged sold in 30.9 days.
• The staged homes realized on average a 6.4% increase over the list price.
• 87% of people said that home presentation makes a difference in most sales.

So if you’re looking to sell your home in Mississauga, Etobicoke or West Toronto area definitely consider home staging as part of your selling strategy and don’t hesitate to contact the top Mississauga Realtor Cynthia Shaw.

Be sure to visit my website for more information about the factors the influence the sale price of a home.