With prices of single family homes already up over 13 per cent year over year, the dream of owning a home in a desirable neighbourhood is quickly fading for many would-be Toronto home owners. So what options are there for people with a budget under $1 million who still want a home in a desirable neighbourhood?
Over the last month, every client I've met with has been asking when the spring market officially begins, and whether they should list now or wait until later on. This is a difficult question, as there are many factors that contribute. A close analysis of both the overall market and the local competition is the best way to come up with a selling strategy.
Another thing condo owners do to try to differentiate themselves is spend thousands of dollars on upgrades. This is usually a bad investment as only a fraction of that is recouped when the condo sells. Industry data shows that similar sized units sell for similar prices, regardless of any upgrades done.
It's not a new concept for builders to offer incentives in the form of upgrades to potential buyers. However, I've been astounded by other incentives that have recently popped up in the Toronto real estate market. For example, Kylemore Communities has been offering $35,000 towards any new BMW, with a purchase of one of their specific condo developments.
Holdback offers are a marketing sales strategy whereby the property is listed for perhaps 5 per cent under market value and offers are held back for a week. Benefits of holdback offers to the seller: not just an increase in price but also an efficiency of time. Less time on the market if it works and less stress for the seller!
Today Toronto leads all cities in North America with 132 high-rise buildings currently under construction. If you're like me and own a unit downtown, you can't help but be a little nervous about where all of this is heading.