When it comes to real estate investment, prospective buyers often have the option to invest in properties that are still in the pre-construction phase. Purchasing pre-construction real estate can be an exciting prospect, offering potential benefits and unique opportunities. However, like any investment, it comes with its own set of advantages and drawbacks. In this blog post, we will thoroughly explore the pros and cons of buying pre-construction real estate to assist you in making an informed decision.

Advantages of Buying Pre-Construction Real Estate:

1. Lower Initial Cost: One significant advantage of purchasing pre-construction properties is the lower initial cost compared to fully developed properties. Developers usually offer attractive prices during the early stages of construction to incentivize early buyers. This means you can secure a property at a potentially lower price and watch its value appreciate as the development progresses.
2. Customization Options: Buying pre-construction allows you to personalize certain aspects of the property, such as selecting the interior finishes, fixtures, and even layout alterations (if permitted by the developer). This level of customization allows you to tailor the property to your preferences and lifestyle, creating a unique living space that reflects your taste.
3. Potential for Appreciation: In a rising real estate market, pre-construction properties can experience significant appreciation in value between the time of purchase and the completion of the project. If you buy in an area with high demand and limited supply, the potential for appreciation can be even greater.
4. Modern Amenities and Features: Developers often include the latest amenities and technology in newly constructed properties to attract buyers. This may include state-of-the-art security systems, energy-efficient appliances, smart home technology, and modern recreational facilities. Investing in pre-construction real estate can offer access to these contemporary features.

Disadvantages of Buying Pre-Construction Real Estate:

1. Construction Delays: One of the most common downsides of purchasing pre-construction property is the potential for construction delays. Various factors, such as weather conditions, labor shortages, or financial setbacks, can extend the project's completion date. Buyers must be prepared for possible delays, which can disrupt their original moving plans.
2. Uncertain Neighborhood and Surroundings: When buying pre-construction, you are essentially buying into a vision. While developers often provide detailed plans for the community, the final result may differ from your expectations. As the area develops around your property, there may be changes that could either enhance or negatively impact its appeal.
3. Unknown Quality: Without a fully constructed property to inspect, you may be relying solely on the developer's reputation and marketing materials to gauge the quality of the build. This uncertainty could lead to dissatisfaction if the finished property does not meet your expectations in terms of materials, workmanship, or design.
4. Investment Risk: As with any real estate investment, there are inherent risks. If the market experiences a downturn during the construction phase or shortly after completion, you could face challenges selling the property or may not achieve the expected return on investment.

Conclusion:

Buying pre-construction real estate can be a rewarding investment strategy if approached with caution and careful consideration. It offers the allure of customization, potential appreciation, and access to modern amenities. However, it also comes with risks, such as construction delays and uncertainties surrounding the neighborhood's future. As a prospective buyer, it is crucial to thoroughly research the developer, the location, and the terms of the contract before making a decision. Consulting with a trusted real estate agent and financial advisor can also provide valuable insights to ensure you make a sound investment choice.

Thanks to a surge in demand for condominiums, August broke sales records with a total of 2,729 sales. However, despite these recent highs, the year-to-date sales figures are still down by 15% compared to last year.

Although there were more new listings compared to the same time last year, the sales-to-new-listings ratio remained high at 87%, meaning there was no significant change in the low inventory situation. In August, inventory levels dropped to 3,254 units, setting a record low for the month and falling far below the typical 6,000 units available. With low inventory and strong sales this month, the supply of homes remained scarce, at just over one month.

According to Ann-Marie Lurie, the Chief Economist at CREB®, "Higher lending rates have caused many buyers to either delay their purchase decisions or opt for more affordable properties. The challenge has been the lack of available supply, particularly in the detached housing market. Inventory levels hit historic lows in August, and while new listings are higher than last year, the market conditions still favor sellers, leading to further price increases."

In August, the unadjusted benchmark price reached $570,700, marking the eighth consecutive monthly increase. Prices have been rising for all types of properties, with row-style properties seeing the largest gains.

Detached:

This month, there were very few homes available for sale, especially those priced under $700,000. While there were more homes listed for sale compared to last year, most of them were priced above $700,000. Although home sales in August were better than last year, there weren't many affordable homes on the market, which likely slowed down sales.

Because there weren't many homes to buy, prices kept going up this month. In August, the average price of a home was $696,700, which is about 1% higher than last month and more than 10% higher than last year. The biggest price increases were in the cheapest parts of the city, like the North East and East districts.

Semi-Detached:

Even though there were 236 new homes listed for sale and 197 homes sold, it didn't change the fact that there weren't many homes available to buy. The number of homes for sale was about the same as last month, but it's still 35% lower than last year, and that's the lowest it's been for this time of year. Because there are more people who want to buy homes than there are homes for sale, it's a good time to be a seller.

Because there aren't many homes for sale, prices are going up. In August, the average price for a semi-detached home was $623,200, which is 1% higher than last month and 10% higher than last year. Prices went up in all parts of Calgary, but the biggest increases were in the cheapest areas, like the North East and East districts.

Row:

Even though more people listed their homes for sale, there were so many buyers that the number of homes for sale stayed low, and it's been like that for five months in a row. Because there are more buyers than sellers, prices keep going up. In August, the average price for a row-style home was $413,200, which is more than 1% higher than last month and almost 16% higher than last year. Prices went up in all parts of Calgary, from 12% in the North West to 29% in the East district.

Apartment Condominium:

In August, more people bought apartments compared to last month and last year. So far this year, there have been 5,582 apartment sales, which is 22% more than last year and the highest it's ever been. A lot of people are buying apartments because they're affordable and there aren't many places for rent. But because there aren't many apartments for sale, prices keep going up.

In August, the average price for an apartment was $309,100, which is more than 1% higher than last month and more than 13% higher than last year. The only part of the city where prices didn't go up was the City Centre, but that's because there are more apartments for sale there compared to other parts of the city.

Selling a home can be exciting yet nerve-wracking. You've put your property on the market, but for some reason, it's not attracting the right buyers or generating the offers you expected. Don't worry; you're not alone. Many homeowners face this challenge. In this blog, we'll explore seven common reasons why your home may not be selling and offer practical tips to overcome these hurdles. Let's dive in!

Overpricing Your Property: One of the most common reasons homes don't sell is overpricing. It's natural to want the highest price, but an unrealistic one can turn away potential buyers. To remedy this, consult with a real estate agent for a fair and competitive price.

Poor Presentation and Curb Appeal: First impressions matter, and how your home looks from the outside can impact potential buyers' interest. Enhance your home's appeal by decluttering, staging, and making the necessary repairs.

Limited Marketing Efforts: Effective marketing is crucial. Partner with a real estate agent who uses a multi-channel approach to reach a broader audience.

Inflexible Showing Schedule: Be flexible with showing appointments to accommodate different schedules. Being available when buyers want to see the property can make a significant difference.

Unaddressed Maintenance Issues: Fix obvious maintenance problems before listing. A pre-inspection can help identify potential problems and address them proactively.

Inadequate Online Presence: Online presence is vital for selling a home. Ensure your property is showcased professionally on various platforms to maximize visibility.

Unappealing Location or Neighborhood: Highlight unique selling points to offset any drawbacks of the location or neighborhood.

Selling a home can be challenging, but understanding common reasons can help you overcome obstacles. Be strategic in pricing, presentation, and marketing efforts, and address maintenance issues promptly. Collaborate with a reputable agent to guide you through the process and attract the right buyers. With the right approach and patience, you'll increase the chances of selling your home successfully. Good luck!

In August 2023, fewer homes were sold compared to August 2022. This happened because it became more expensive to borrow money, and people were not sure about the economy and what decisions the Bank of Canada would make. Additionally, there were not enough homes available for sale. The prices of homes stayed about the same during this time. When we look at the numbers each month, we see that both the number of homes sold and their prices went down a bit.

Looking ahead, we expect that many people will still want to buy or rent homes in the Greater Toronto Area and nearby regions. This is because a lot of people are coming to live here from other places. However, in the short term, we might continue to see some ups and downs in the housing market. This is because people who want to buy and sell homes are waiting to see what happens with borrowing costs and the overall economy.

In August 2023, real estate agents in the Greater Toronto Area reported that 5,294 homes were sold. This is 5.2% less than the number of homes sold in August 2022. However, more homes were put up for sale compared to last year, which is a bit of good news. But if we look at the numbers for the whole year so far, there are still fewer homes for sale compared to the same time last year. When we adjust the numbers to account for the different seasons, we see that the number of homes sold went down a little compared to the previous month (July 2023), while the number of new homes for sale went up slightly.

During the summer, the housing market was a bit more balanced compared to the spring when it was harder to buy a home. This means that the prices of homes stayed about the same as last year and even went down a bit compared to July. Since interest rates went up in May, some people had to change their offers to be able to afford higher monthly payments. Not all sellers decided to lower their prices, so there were fewer homes sold.

The people who track the housing market say that the average price of homes in August 2023 was about 1% higher than last year, and the overall price of homes in the area went up by 2.5% compared to last year. But when we look at the numbers just for one month (August compared to July), the prices didn't really change much, and they even went down a little.

Because it's more expensive to borrow money, it's becoming harder for people to afford homes. And now, the government is thinking about raising taxes, which will make it even harder for some people to buy homes, especially young people who don't have much money saved up. The city of Toronto is also thinking about charging more tax on expensive properties to make money, but they should also think about helping first-time home buyers because homes are getting more expensive. 

Discover Fall Events and Festivals in Toronto 

September 15-17

Toronto Ukrainian Festival

Bloor West Village

North America's most prominent Ukrainian festival is taking over Bloor West Village. There will be non-stop entertainment featuring Ukrainian talent, traditional comfort foods (like potato pancakes), beautiful crafts, and collectibles to check out.

September 16-17

Roncesvalles Polish Festival

Roncesvalles Polish Festival

Get your dancing on as you listen to Polka and Euro dance bands, savour some pillowy pierogis, or window shop as you stroll charming Roncesvalles at this annual street festival.

August 27 - October 29

Kensington Pedestrian Sundays

Kensington Market

Carless Sundays are back! Sway to the music of talented street performers, eat some Argentinian empanadas, visit a cheese store, or browse racks of vintage clothing at this weekly Sunday street festival in Kensington.