On the flip side, Masrani notes that anything a seller prepares to buy will have seen similar price adjustments. So long as the seller enters their transaction with an idea of their real estate priorities, and they understand what those corresponding list prices may look like, they needn’t hold back from entering the market at this time.
Of course, sellers must also consider their location. Depending on where in Ontario a property is being listed, how much its value has shifted will vary.
“It all depends on the area — in the GTA, you’re seeing detached and semi-detached home prices declining more than those of townhomes or condos,” Masrani explains, adding the ever-present real estate truth: “[It’s all about] location, location, location.”
Regardless of where one is listing their home, a few tips Masrani suggests for setup and staging remain consistent.
“Your home should be in tip-top shape,” he says. “Think of it as opening night. Most buyers buy through emotion, so your home should be decluttered, freshly painted, minimalist.”
He also notes the importance of landscaping and curb appeal, particularly at this time of year.
“The lighting of the house is important; change those lightbulbs to 100w, so it’s nice and bright. The ambiance of the home — the music, the aroma — everything matters. And again, really investigate — in detail — your list price. You want to attract the most buyers in the first few days after listing.”
When it comes to the other side of the seller’s situation — purchasing — Masrani encourages not buying firm, and instead putting a conditional offer on a new home when yours hits the market. And then, once you secure a conditional offer on your own home, you’ll have space to firm up your purchase. Above all, he encourages seeking support from a qualified professional.
Beyond this tangible advice, Masrani also offers some general takeaways relevant any time someone is gearing up to sell their home.
“You can never time the market. Do what’s right for your circumstances, and do not panic sell, or buy. Make a well-informed decision,” he says. “Make sure you do your research, and don’t get caught up with what you could have got a few months ago — focus on the now.”
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Of course, sellers must also consider their location. Depending on where in Ontario a property is being listed, how much its value has shifted will vary.
“It all depends on the area — in the GTA, you’re seeing detached and semi-detached home prices declining more than those of townhomes or condos,” Masrani explains, adding the ever-present real estate truth: “[It’s all about] location, location, location.”
Regardless of where one is listing their home, a few tips Masrani suggests for setup and staging remain consistent.
“Your home should be in tip-top shape,” he says. “Think of it as opening night. Most buyers buy through emotion, so your home should be decluttered, freshly painted, minimalist.”
He also notes the importance of landscaping and curb appeal, particularly at this time of year.
“The lighting of the house is important; change those lightbulbs to 100w, so it’s nice and bright. The ambiance of the home — the music, the aroma — everything matters. And again, really investigate — in detail — your list price. You want to attract the most buyers in the first few days after listing.”
When it comes to the other side of the seller’s situation — purchasing — Masrani encourages not buying firm, and instead putting a conditional offer on a new home when yours hits the market. And then, once you secure a conditional offer on your own home, you’ll have space to firm up your purchase. Above all, he encourages seeking support from a qualified professional.
Beyond this tangible advice, Masrani also offers some general takeaways relevant any time someone is gearing up to sell their home.
“You can never time the market. Do what’s right for your circumstances, and do not panic sell, or buy. Make a well-informed decision,” he says. “Make sure you do your research, and don’t get caught up with what you could have got a few months ago — focus on the now.”
.
WATCH: Recent Changes in the Canadian Housing Market Explained by CREA’s Senior Economist
“The National Aggregate MLS® Home Price Index edged down 1.7% in July compared to June (probably not a huge surprise there), but the decline was smaller than in June, which was the first sign of deceleration on the price side.”
Shaun Cathcart, CREA’s Senior Economist and Director of Housing Data and Market Analysis, breaks down the July 2022 Canadian housing market report.
“The National Aggregate MLS® Home Price Index edged down 1.7% in July compared to June (probably not a huge surprise there), but the decline was smaller than in June, which was the first sign of deceleration on the price side.”
Shaun Cathcart, CREA’s Senior Economist and Director of Housing Data and Market Analysis, breaks down the July 2022 Canadian housing market report.
Is Crypto The Future For Real Estate?
Buyers broke numerous cryptocurrency records in 2021, and 2022 looks bright.
“There is an upward trend of people using digital assets to buy luxury goods,” says Max Dilendorf, partner, Dilendorf Law Firm, who specializes in structuring real estate transactions using cryptocurrencies. “We represent a lot of clients in these transactions as lawyers and escrow agents.”
While Dilendorf recognizes that some sellers may be hesitant to take bitcoin or other cryptocurrencies by virtue of how new they are, “by accepting bitcoin for real estate or any other luxury good, you increase your chance of selling,” he says.
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Buyers broke numerous cryptocurrency records in 2021, and 2022 looks bright.
“There is an upward trend of people using digital assets to buy luxury goods,” says Max Dilendorf, partner, Dilendorf Law Firm, who specializes in structuring real estate transactions using cryptocurrencies. “We represent a lot of clients in these transactions as lawyers and escrow agents.”
While Dilendorf recognizes that some sellers may be hesitant to take bitcoin or other cryptocurrencies by virtue of how new they are, “by accepting bitcoin for real estate or any other luxury good, you increase your chance of selling,” he says.
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In May, a Miami penthouse made headlines when it sold for the equivalent of US$22.5 million in cryptocurrency. In September, the property hit the market again with some renovations and a US$28 million price tag. Again, the realtors would accept cryptocurrency. But one reason this particular deal made headlines is that at the moment, it’s rare.
In Bucharest, Monica Barbu, CEO, Romania Sotheby’s International Realty, is representing a seller who will accept cryptocurrency for the sale of a pop art–themed penthouse. It’s the first luxury property in their office to be made available for purchase by bitcoin, she says.
Barbu says the seller may consider other forms of cryptocurrency, but the preference is bitcoin, since the seller is invested in it already.
In New York City, the seller of a limestone mansion located half a block away from Central Park will accept cryptocurrency. Cathy Taub, senior global real estate advisor, Sotheby’s International Realty–East Side Manhattan Brokerage, represents the seller and said it wouldn’t be the first time her clients have dealt in cryptocurrency.
“Generally, in my experience, sellers who accept crypto think of bitcoin and certain other crypto as digital gold. They have a concern about inflation eating away at their fiat cash,” Taub says. “Given the immense global interest in crypto, there’s no doubt in my mind that it will become increasingly popular as ‘consideration’ for real estate.”
POTENTIAL UPSIDES AND DOWNSIDES
As a medium of exchange, cryptocurrency has benefits. It can be useful for buyers who need to initiate international exchanges and who want to avoid traditional banking fees. Compared with standard wire transfers, cryptocurrency transaction costs are lower. On the other hand, when two American parties conduct a transaction using a digital asset, the buyer will pay capital-gains taxes, Dilendorf explains.
“Under the U.S. tax code, bitcoin is considered property, and so is real estate. It isn’t a cash payment, so it’s a barter where you’re exchanging one type of asset for another type of asset. Both assets have tax rates, so it’s not convenient from a tax perspective,” Dilendorf explains.
Some buyers may also be hesitant to part with their bitcoin—hoping it may go up in value.
“When bitcoin was US$65,000, we were getting a lot of interest from clients who wanted to buy real estate or yachts through crypto,” Dilendorf says. “If bitcoin breaks US$80,000 or US$100,000, I would expect a lot of people to complete these types of transactions.” Early adopters of bitcoin could see that valuation as an excellent time to liquidate and invest in luxury goods or other assets. (In the first three quarters of 2021, bitcoin ranged from US$29,413.29 to US$64,899 per coin.)
A group of researchers at global bank Standard Chartered forecast values will continue to increase, and bitcoin could reach US$100,000 by early 2022. “As a medium of exchange, bitcoin may become the dominant peer-to-peer payment method for the global unbanked in a future cashless world,” Geoffrey Kendrick, head of crypto research, Standard Chartered, said in a statement.
Still, regulatory compliance presents an added layer of complexity. “When you make a payment with bitcoin or Ethereum, and the seller accepts it, the seller becomes a minibank,” Dilendorf says. Sellers must complete a KYC—a “know your customer” or “know your client”—check and anti-money-laundering check.
“You can think of this as a title check on a bitcoin. You can see how and where this bitcoin was traded. If the order came from a sanctioned jurisdiction like Iran, it could raise questions,” Dilendorf says. “Naturally, many sellers aren’t equipped to accept bitcoin.”
Thus, Dilendorf says most transactions have involved converting bitcoin into cash to expedite the process of buying real estate, green cards through the EB-5 program, yachts, and art.
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In Bucharest, Monica Barbu, CEO, Romania Sotheby’s International Realty, is representing a seller who will accept cryptocurrency for the sale of a pop art–themed penthouse. It’s the first luxury property in their office to be made available for purchase by bitcoin, she says.
Barbu says the seller may consider other forms of cryptocurrency, but the preference is bitcoin, since the seller is invested in it already.
In New York City, the seller of a limestone mansion located half a block away from Central Park will accept cryptocurrency. Cathy Taub, senior global real estate advisor, Sotheby’s International Realty–East Side Manhattan Brokerage, represents the seller and said it wouldn’t be the first time her clients have dealt in cryptocurrency.
“Generally, in my experience, sellers who accept crypto think of bitcoin and certain other crypto as digital gold. They have a concern about inflation eating away at their fiat cash,” Taub says. “Given the immense global interest in crypto, there’s no doubt in my mind that it will become increasingly popular as ‘consideration’ for real estate.”
POTENTIAL UPSIDES AND DOWNSIDES
As a medium of exchange, cryptocurrency has benefits. It can be useful for buyers who need to initiate international exchanges and who want to avoid traditional banking fees. Compared with standard wire transfers, cryptocurrency transaction costs are lower. On the other hand, when two American parties conduct a transaction using a digital asset, the buyer will pay capital-gains taxes, Dilendorf explains.
“Under the U.S. tax code, bitcoin is considered property, and so is real estate. It isn’t a cash payment, so it’s a barter where you’re exchanging one type of asset for another type of asset. Both assets have tax rates, so it’s not convenient from a tax perspective,” Dilendorf explains.
Some buyers may also be hesitant to part with their bitcoin—hoping it may go up in value.
“When bitcoin was US$65,000, we were getting a lot of interest from clients who wanted to buy real estate or yachts through crypto,” Dilendorf says. “If bitcoin breaks US$80,000 or US$100,000, I would expect a lot of people to complete these types of transactions.” Early adopters of bitcoin could see that valuation as an excellent time to liquidate and invest in luxury goods or other assets. (In the first three quarters of 2021, bitcoin ranged from US$29,413.29 to US$64,899 per coin.)
A group of researchers at global bank Standard Chartered forecast values will continue to increase, and bitcoin could reach US$100,000 by early 2022. “As a medium of exchange, bitcoin may become the dominant peer-to-peer payment method for the global unbanked in a future cashless world,” Geoffrey Kendrick, head of crypto research, Standard Chartered, said in a statement.
Still, regulatory compliance presents an added layer of complexity. “When you make a payment with bitcoin or Ethereum, and the seller accepts it, the seller becomes a minibank,” Dilendorf says. Sellers must complete a KYC—a “know your customer” or “know your client”—check and anti-money-laundering check.
“You can think of this as a title check on a bitcoin. You can see how and where this bitcoin was traded. If the order came from a sanctioned jurisdiction like Iran, it could raise questions,” Dilendorf says. “Naturally, many sellers aren’t equipped to accept bitcoin.”
Thus, Dilendorf says most transactions have involved converting bitcoin into cash to expedite the process of buying real estate, green cards through the EB-5 program, yachts, and art.
.
Bitcoin and Ethereum, the two most common cryptocurrencies used for luxury purchases, are already regulated with the U.S. Securities and Exchange Commission, and as such, there’s more certainty in terms of regulations, Dilendorf says.
In 2022, more businesses could set up in-house support for cryptocurrency sales, or accept mix-and-match currencies for luxury goods, as buyers and sellers alike become more open to it.
For now, Dilendorf says he asks every real estate agent he works with in New York City why they aren’t listing prices in bitcoin. “It’s a marketing pitch, and if someone wants to pay in bitcoin, it doesn’t cost anything to the seller. Why not price it in bitcoin?” he says.
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In 2022, more businesses could set up in-house support for cryptocurrency sales, or accept mix-and-match currencies for luxury goods, as buyers and sellers alike become more open to it.
For now, Dilendorf says he asks every real estate agent he works with in New York City why they aren’t listing prices in bitcoin. “It’s a marketing pitch, and if someone wants to pay in bitcoin, it doesn’t cost anything to the seller. Why not price it in bitcoin?” he says.
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Leslie St/Elgin Mills Road East
Richmond Hill New Single Family Development
$2,899,990
OVERVIEW
Richmond Hill is home to early learning centres, some of the province’s top-ranked public schools, and prestigious private schools, making it an extremely attractive choice for families looking to raise a family just outside the big city. The area surrounding this houses is also home to a wide variety of extracurricular and recreational activities with the Richmond Green Sports Centre located within walking distance and a local YMCA situated nearby. The community is also home to a local hospital, places of worship, and public libraries.
ENDLESS POTENTIAL!
PROPERTY DETAILS
Size (Sf): 3,460
No. of Bedrooms: 4 Bedroom
Home Type: 2 Storey
Product Type: Detached
Tenure: Freehold
Interested In this Property?
If you have any questions, please contact Hojjatollah Izady:
647-772-9502
hoizady@yahoo.com
.
Richmond Hill New Single Family Development
$2,899,990
OVERVIEW
Richmond Hill is home to early learning centres, some of the province’s top-ranked public schools, and prestigious private schools, making it an extremely attractive choice for families looking to raise a family just outside the big city. The area surrounding this houses is also home to a wide variety of extracurricular and recreational activities with the Richmond Green Sports Centre located within walking distance and a local YMCA situated nearby. The community is also home to a local hospital, places of worship, and public libraries.
ENDLESS POTENTIAL!
PROPERTY DETAILS
Size (Sf): 3,460
No. of Bedrooms: 4 Bedroom
Home Type: 2 Storey
Product Type: Detached
Tenure: Freehold
Interested In this Property?
If you have any questions, please contact Hojjatollah Izady:
647-772-9502
hoizady@yahoo.com
.
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George Fallis: Housing affordability is not in crisis
Core housing need has actually been falling over the past 20 years
In recent years, the news media have declared a “housing affordability crisis.” House prices were soaring in most cities, rising far faster than incomes. At one stage earlier this year, rents in the Greater Toronto Area were up 20 per cent year-over-year. But what do these data really tell us about the affordability problems faced by Canadians?
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Core housing need has actually been falling over the past 20 years
In recent years, the news media have declared a “housing affordability crisis.” House prices were soaring in most cities, rising far faster than incomes. At one stage earlier this year, rents in the Greater Toronto Area were up 20 per cent year-over-year. But what do these data really tell us about the affordability problems faced by Canadians?
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“Rents in the GTA are up 20 per cent” makes us think all renters faced a 20 per cent hike. But that’s not true. The 20 per cent increase applies only on units advertised for rent (on Realtor.ca). But they are a tiny share of all rental units. Most rental units in Ontario are regulated and the guideline increase is 1.2 per cent this year and 2.5 per cent next. The vast majority of GTA renters will therefore have a rent increase well below the rate of inflation. The households that do face big increases are those wanting to move and those just coming into the rental market — immigrants, refugees and post-secondary students, for example.
Same story for owners: until recently, house prices were rising dramatically and the income needed to buy the average house kept rising (even though mortgage interest rates had been falling). But was housing affordability for most owners getting worse? Absolutely not. As prices rose, existing homeowners paid no more for their housing; indeed, they got better off because the value of their home rose and their equity in it grew. Only those trying to enter the ownership market — the would-be first-time home-buyer — faced an affordability problem.
In brief, over the past five years, most renters have faced modest rent increases and most owners have become better off. Is this really the stuff of a housing affordability crisis? Could it be the media are more interested in bold headlines and clicks than in analysis?
Canada Mortgage and Housing Corporation (CMHC) seems to have wandered off in this direction, too. In June, it issued a report estimating “what is needed to solve Canada’s housing affordability crisis.” But the only indicator of housing affordability it used was shelter cost as a share of disposable income when the average household buys the average house. As we’ve seen, this is a good indicator of the problems faced by first-time home-buyers but it tells us little about existing owners and nothing about the affordability problems of renters. Even so, CMHC declared a housing affordability crisis and concluded “there must be a drastic transformation of the housing sector” — which is strange because just a few years ago it said “Canada has one of the best housing systems in the world.”
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Same story for owners: until recently, house prices were rising dramatically and the income needed to buy the average house kept rising (even though mortgage interest rates had been falling). But was housing affordability for most owners getting worse? Absolutely not. As prices rose, existing homeowners paid no more for their housing; indeed, they got better off because the value of their home rose and their equity in it grew. Only those trying to enter the ownership market — the would-be first-time home-buyer — faced an affordability problem.
In brief, over the past five years, most renters have faced modest rent increases and most owners have become better off. Is this really the stuff of a housing affordability crisis? Could it be the media are more interested in bold headlines and clicks than in analysis?
Canada Mortgage and Housing Corporation (CMHC) seems to have wandered off in this direction, too. In June, it issued a report estimating “what is needed to solve Canada’s housing affordability crisis.” But the only indicator of housing affordability it used was shelter cost as a share of disposable income when the average household buys the average house. As we’ve seen, this is a good indicator of the problems faced by first-time home-buyers but it tells us little about existing owners and nothing about the affordability problems of renters. Even so, CMHC declared a housing affordability crisis and concluded “there must be a drastic transformation of the housing sector” — which is strange because just a few years ago it said “Canada has one of the best housing systems in the world.”
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750,000 Canadian Mortgages at Risk of Rising Trigger Rate Payments This Fall
Canadians have seen rent, food and gas prices soar in the past year, and now hundreds of thousands of households can expect another hit: rising monthly mortgage payments.
Many borrowers who took out variable-rate mortgages during the height of the housing market frenzy in 2021 and early 2022 could face higher payments next month — or even the need for a lump-sum payment on their mortgages.
The vast majority of variable-rate mortgages have fixed monthly payments, but soaring interest rates mean many of them will likely hit their “trigger rates” this fall, forcing an increase in payments.
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Canadians have seen rent, food and gas prices soar in the past year, and now hundreds of thousands of households can expect another hit: rising monthly mortgage payments.
Many borrowers who took out variable-rate mortgages during the height of the housing market frenzy in 2021 and early 2022 could face higher payments next month — or even the need for a lump-sum payment on their mortgages.
The vast majority of variable-rate mortgages have fixed monthly payments, but soaring interest rates mean many of them will likely hit their “trigger rates” this fall, forcing an increase in payments.
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Around 15% of the mortgages in Canada are in this group, according to an estimate from Ben Rabidoux, a prominent housing market analyst. That amounts to around 750,000 mortgages.
A “trigger rate” is the point at which interest payments eat up all of a monthly mortgage payment, and the borrower is no longer paying down the principal they borrowed — something that’s not allowed under Canadian lending rules.
This means borrowers will be contacted by their lender and, typically, given the option to either increase their monthly payment, or make a lump sum payment against their mortgage to lower the amount owing.
Depending on their mortgage, borrowers may also have the option to switch to a fixed-rate mortgage – though Rabidoux and others warn there’s a chance borrowers could end up locking themselves in at unnecessarily high rates.
Canadians took out $260B-worth of variable-rate mortgages between March 2021 and February 2022, at a rock-bottom average interest rate of 1.58%, Rabidoux noted in a Twitter thread.
The “average” of these mortgages will hit their trigger rate if the Bank of Canada (BoC) raises its key lending rate by just one more percentage point, or 100 basis points in the language of the financial industry, said Rabidoux, founder of North Cove Advisors and Edge Realty Analytics.
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A “trigger rate” is the point at which interest payments eat up all of a monthly mortgage payment, and the borrower is no longer paying down the principal they borrowed — something that’s not allowed under Canadian lending rules.
This means borrowers will be contacted by their lender and, typically, given the option to either increase their monthly payment, or make a lump sum payment against their mortgage to lower the amount owing.
Depending on their mortgage, borrowers may also have the option to switch to a fixed-rate mortgage – though Rabidoux and others warn there’s a chance borrowers could end up locking themselves in at unnecessarily high rates.
Canadians took out $260B-worth of variable-rate mortgages between March 2021 and February 2022, at a rock-bottom average interest rate of 1.58%, Rabidoux noted in a Twitter thread.
The “average” of these mortgages will hit their trigger rate if the Bank of Canada (BoC) raises its key lending rate by just one more percentage point, or 100 basis points in the language of the financial industry, said Rabidoux, founder of North Cove Advisors and Edge Realty Analytics.
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Market Watch Infographic-August 2022
In August 2022, the Average Price of Homes sold across Canada was $1,079,500, Up 0.9% in comparison to August 2021.
Please call us if you need any of below services for Buyers and Sellers:
- Loans with the lowest interest rates available in the market ( First, Second, Third Mortgages)
- Free evaluation of your home Home Evaluation
- Finding your dream home according to location and budget
- Obtaining complete market information in order to make the right decision when buying or selling a house/condo
We have special services for:
- First Time Home Buyers
- Newcomers to Canada
- Non-Residents of Canada
- Investment Property
- Renovation Services
☎️ You can contact us via Phone or Email:
+1 (647) 772-9502
hoizady@yahoo.com
.
In August 2022, the Average Price of Homes sold across Canada was $1,079,500, Up 0.9% in comparison to August 2021.
Please call us if you need any of below services for Buyers and Sellers:
- Loans with the lowest interest rates available in the market ( First, Second, Third Mortgages)
- Free evaluation of your home Home Evaluation
- Finding your dream home according to location and budget
- Obtaining complete market information in order to make the right decision when buying or selling a house/condo
We have special services for:
- First Time Home Buyers
- Newcomers to Canada
- Non-Residents of Canada
- Investment Property
- Renovation Services
☎️ You can contact us via Phone or Email:
+1 (647) 772-9502
hoizady@yahoo.com
.