Property owners face steep price increases due to property sales
A property agent in Toronto says he is seeing prices jump up on some properties as part of a real estate frenzy, while other people are seeing their prices skyrocket.
Nick Zabriskie, vice president of sales and marketing for PropertyConveyancing in the GTA, said his office saw prices jump around the neighbourhood of Toronto’s Yonge-Dundas Square rise by up to 30% in the last week, after sales of properties by a handful of large companies in recent months.
“This is the biggest surge I’ve seen in a couple of weeks,” he told CNN.
Zabstrandie said many people have been moving out of Toronto to the suburbs, including in Mississauga and Brampton, because of low-cost real estate.
The average price of a detached home in the area has risen by $5,000 since July to $1.5 million, he said.
“It’s very dramatic.”
Zabstraie said it is normal for the market to fluctuate as a result of sales.
“If we saw a downturn, it would definitely affect people’s incomes,” he said, adding that he believes many people will be hit by the increases.
Zabsky said he has seen a number of people cancel their mortgages.
Zabstrai said it’s not unusual for people to be looking for a property to buy, with some people looking to sell and others seeking a new place to live.
Zabiksh said that’s been happening a lot over the last two months.
“People are coming into Toronto and saying, ‘I’ve never owned a home before, but I think I might want to rent,’ ” he said in an interview.
“It’s really hard to do,” he added.
Zabbski said that while it’s normal to see people’s prices increase as a buyer moves into a new neighbourhood, it’s also not uncommon for some to see their prices jump.
“When you see people selling their houses and condos, it could be because they’ve seen a price increase and they’re thinking about a new home.”
Zabstrandsie said he believes there are two factors driving the price increase: a large number of new condo and apartment projects in the city and the “crap” that’s happening to the Toronto Real Estate Board (TREB).
He said it was “completely predictable” that condo and apartments were being sold out and that it’s been “a crapshoot” how many properties are being sold at any given time.
The TREB has been experiencing a major supply glut and demand has been high, he added, as has demand for condos.
“I don’t think you can say there’s not been some supply, there’s just not a lot,” Zabstrapie said.
He said there’s a lot of supply, but “there’s a bit of a catch-22” in that.
He added that he’s seeing a lot more people moving into the suburbs and asking for condos in the process, adding they’re finding it hard to find the homes they want.
The Toronto Real Property Board has seen demand for rental properties jump over the past couple of years, Zabzys said.
The board says that number has been trending downward since late 2016, but that’s likely due to a number in the current market being sold.
“We don’t really know the number of sales,” Zabbsie said of rental properties.
“We just don’t know.”
The TREb said it has a rental vacancy rate of about 11% in Toronto.
It’s hard to compare prices between units, he explained, because units are sold by the square footage.
“But we think that it is a fair way to look at what’s happening,” Zabsie said, noting that he thinks the real estate market will continue to be volatile in the coming months.
Zabaizzi said he thinks a lot will depend on whether the condo market holds up.
“There’s a number that we’re seeing going up, but we don’t see the number that’s going down.
The condo market is so hot right now,” he explained.”
There’s going to be some demand in the future.”
Zabazzi said the TREB expects condo sales to continue to outpace sales of rentals for the foreseeable future.
“The number of condos is just going to continue and continue to rise,” he predicted.
Zabbsz said he’s seen a lot people in Toronto who are not paying rent but are looking to buy a condo and move to the city, citing the condo boom in Vancouver.
He also pointed to a growing number of empty condos being sold in the neighbourhood.
“They’re finding that they can get a new condo, but the market is getting flooded,” he noted.
Zobesz said the number one reason he’s been seeing people moving out is the condo craze.
“They’re not paying any rent