“The bulk of the downward adjustment to sales reacting to the sharp rise in borrowing costs may be in the rearview mirror,” says Shaun Cathcart, CREA’s Senior Economist, as home sales were up 1.3% on a month-over-month basis in December 2022.

Wondering how this impacts your home buying or selling decision? Are you interested in moving out of the province? Connect with me to discuss your options and for a trusted referral.⁠

To A Good Life!

Sam Chaim⁠ - Your Point Man in Real Estate
Making A Difference For You
Re/Max Realtron⁠
(416) 543-7252⁠
sam@samchaim.com⁠

It’s a new year so with this first newsletter let me once again wish you only good things in the coming year for you and your family. 2022 was a successful year due to the tremendous support extended by you, my clients, and friends. I am most grateful as once again I reached the Remax Platinum award level, top 2% in North America.

We’ve all been touched and even paused by world & economic events of the past year, yet it’s a time to look ahead. A refreshed calendar presents a new year filled with new possibilities and opportunities.

There are also new challenges in 2023. December’s sales of 3,117 brought 2022 to a close with a total of 75,140 homes sold at an average price of $1,189,850. This compares to 2021’s average price of $1,095,333. While the average price is up from a year ago, it does not tell the whole story. In fact, prices have been adjusting downward since they rose by 25%-28% in last year’s February/March timeframe.

Looking forward, two major factors should be considered and understood:

1- as we entered 2022, a buying frenzy occurred. Buyers were convinced prices would continue to skyrocket and decided to get into the market regardless of price and so prices rose an unsustainable +25%.

2- the Bank of Canada is singularly focussed on squashing inflation by dramatically raising interest rates. This has eliminated many buyers from qualifying for financing but at the same time created uncertainty and a fear of what is to come. Some Buyers and Sellers have decided to sit back and see how the market responds, impacting both demand and price growth.

At the risk of repeating myself it needs to be said, that the reality of the market in Toronto is created by the housing shortage that won’t be alleviated in the short term, (our listing inventory is only at 8,692,), and rents have increased by 12%-15% while renters are now more consistently facing bidding wars. With an estimated 1.2 million new LEGAL immigrants (plus others seeking asylum) poised to come to Canada in the next 3 years, it doesn’t take a market expert to understand what will happen to home prices in the GTA. Also to be considered is the psychological impact the uncertainty brings as the financing challenge is understandably worrisome for most.

Over the last 15 years we have had ultra-low interest rates. We have either forgotten, or new buyers are unaware, that those rates are truly remarkable. In the 1970’s, mortgage rates fluctuated between 8%-12% and people bought! In the 1980’s they were between 14%-23% and yes, people financed even at 23%. I was one of those in 1981 at 18.75%! Between 1990 - 2008 interest rates were between 8%-14% and people still bought! Point being, it takes time for buyers to adjust to a new reality and those who do will be smiling down the road, just as I did.

I can’t speak to what might happen in other parts of Canada, but I don’t share the negative outlook for Toronto. I believe buyers will soon adjust to the new mortgage rates as they have adjusted to the increases in home prices over the past years. Great opportunities exist in the real estate market right now. The fortunate ones are those who need little or no financing. For them, this is a definite time to buy with the lower prices being the bonus. Even if we are not sure we have hit the bottom of this cycle, in my opinion, yes, I am going out on a limb, we are close.

Whether to upgrade your existing home, right size your lifestyle or buy an investment property, now is a great time to jump in while others are on the sidelines.

As we begin this new year, I look forward to connecting with you and invite your calls whenever you’d like to know “what are they asking?” or “how much did it sell for?” or "my friend is thinking of a move. Can you help them?". Let's connect and set you on the right path.

Best wishes for a great 2023 and….

To A Good Life!

Sam Chaim⁠ - Your Point Man in Real Estate
Making A Difference For You
Re/Max Realtron⁠
(416) 543-7252⁠
sam@samchaim.com⁠

Watch Video
Read Full Market Stats Package

“Sales actually popped up from September to October, and the decline in prices on a month-to-month basis got smaller for the fourth month in a row,” says CREA’s Senior Economist, Shaun Cathcart.

Wondering how this impacts your home buying or selling decision? Are you interested in moving out of the province? Connect with me to discuss your options and for a trusted referral.⁠

To A Good Life!

Sam Chaim⁠ - Your Point Man in Real Estate
Making A Difference For You!
Re/Max Realtron⁠
416-543-7252⁠
sam@samchaim.com⁠

Despite another rate hike from the Bank of Canada, activity remained similar to last month with 4,961 sales taking place, and homes available for sale staying around the 13,000 mark. This low number of available homes helped keep the average price stable, more or less flat for the last three months.

Note: This is still 9.9% higher than the end of 2021.

The Bank of Canada’s most recent messaging suggests they are reaching the end of their tightening strategy and bond yields dipped. As a result, fixed mortgage rates may trend lower moving forward which would help affordability and thus sales.

While this seems like good news, I must admit, it makes me nervous. There are so few homes for sale, any kind of small uptick in demand could lead to a repeat of rapid price increases as we have experienced earlier this year. Despite the economic uncertainty, the inventory shortage coupled with continuing strong demand for housing could cause a quick rebound to a hot market.

This is a complicated and somewhat unpredictable real estate market. Yet, it is an ideal time for those looking to benefit as up-sizers or investors

While everyone’s circumstances, wants and needs differ, for most, sitting on the sidelines and waiting is a mistake. If you’re not sure, or if you know of someone who needs to talk about their situation, please give me a call, I’ll be happy to consult objectively! Let’s assess together when the right time is to move forward. My role is not to make a sale, it’s to address any real estate uncertainty you may have and propose your next steps. That may result in a recommendation of “do nothing”.

Regardless of your needs, it's important that you work with a strong, experienced realtor and a worldwide brand that can help you navigate and make great decisions in this market. Take advantage of my combined experience of 17 years in real-estate and 4 decades as a business owner. Give me a call and let’s talk!

To A Good Life!

Sam Chaim⁠ - Your Point Man in Real Estate
Making A Difference For You
Re/Max Realtron⁠
(416) 543-7252⁠
sam@samchaim.com⁠

When the overnight rate is increased, it becomes more expensive to borrow money. The increased costs of borrowing money are shifted from the bank onto the consumer by increasing the Prime Rate.

Pre-Approvals are likely to decrease.

Fixed-Rate Mortgages remain the same.

Adjustable Rate Mortgages will increase according to the new Prime Rate minus your discount. (Expect information in the mail).

Static Variable Mortgages payments remain the same but a portion of interest paid to the lender will change.

Reach out with your questions anytime. I can introduce you to a mortgage broker who would be happy to go over your options with you and help you find a mortgage that you're most comfortable with.

To A Good Life!

Sam Chaim⁠ - Your Point Man in Real Estate
Making A Difference For You!⁠
Re/Max Realtron⁠
416-543-7252⁠
sam@samchaim.com⁠

October 2022 

Dear Friend, 

Borrowing rates are up and so are sales prices while volume is down. Are you surprised? The recent trend continues as 5,038 homes sold in September, down from last year’s record levels. The average sale price also is up 10.7% since the start of the year to $1,212,963. It’s confusing, isn’t it? Prices are supposed to be down but yet are up. This disconnect is because prices increased 28% in February and March this year. Prices are averaging down slowly from those highs, as we expect to end 2022 with a 6-8% price increase over 2021. 

This also explains why despite the negative news and borrowing rate increase the market continues to move forward. Some got lucky a few months ago and sold near the peak but in most of those cases, they also bought at that same peak. Trade-up buyers are seeing this as an opportunity to upgrade before prices make their next charge forward, and they will. Increases of 12-15% in rental rates combined with prices being off their peak have attracted investors back into the market.  

Bottom line, Toronto and the GTAA is not likely to suffer any sustained value retraction.  Living in and near Toronto there are always people on the move because of personal circumstances and of course immigration bolsters demand on top of that. The area governments are so far behind in creating a path to easing demand it will still take years to change the dynamics. 

You’ll pardon me for beating the same drum again and again but there is a continuing shortage of available homes for sale for trade up buyers while downsizers are staying home longer. Therefore, the future of home valuations in the GTA remains extremely positive if we stay focussed on the long term.

What your best move is, and when to make it, remains a very personal question. So, talk to me about your needs and I promise you the most impartial objective advice. My interest and priority is to help you do what is best for you. Let me guide you through the intricacies and often confusing signals of the current market. Opportunities do exist whether you are buying or selling and the first one to say, “let’s wait,” will be me, if that makes the most sense for you and your family.  The worst decision for you just might be, not to make any decision.  

Let’s talk because you have a friend in the business who cares!

To A Good Life,

Sam Chaim⁠ - Your Point Man in Real Estate
Making A Difference For You!
Re/Max Realtron⁠
416-543-7252⁠
sam@samchaim.com⁠

Did you hear the news? The BoC increased the overnight lending rate by 0.75%, which is another increase for the 5th time in a row. The Prime rate is expected to increase by 0.75% to 5.45% and Variable rate mortgages will increase by 0.75%.

The Bank’s committed to price stability and will continue to do what is required to achieve a 2% inflation target. As the effects of monetary tightening work their way through the economy, the BoC will assess how much higher interest rates need to go to return inflation to its target. The current inflation rate is measured at 7.6% decreasing from 8.1% in the previous month.

The next announcement is scheduled for October 26th and there's certainly hope that October will be more positive.

To A Good Life!

Sam Chaim⁠ - Your Point Man in Real Estate
Making A Difference For You!
Re/Max Realtron⁠
416-543-7252⁠
sam@samchaim.com⁠

With 5,627 homes sold, August marked a slight increase over July in terms of number of homes sold as well as for the average sale price. The average sale price YTD is now at $1,224,216, compared to 2021’s average price of $1 095,339. 

Please don’t expect prices to start to rise again. What August’s data shows is that the real estate market is active with sales and purchases taking place. While listings remain in short supply, buyers show continued willingness to purchase at today’s market prices. Overpriced listings are soon exposed by today’s savvier buyer and those listings will languish.

As always there are areas of strength and weakness in the market. Condominium sales in the 416-area code have strengthened as overall demand has increased due to the higher price points for detached homes and the fact that rents have increased significantly over the last year. Renovated suites in older buildings are typically larger and are selling at significant premiums over those that are unrenovated. Also 905 detached home prices have softened in the outlying areas, but the challenge for first time buyers or those moving further away to upsize will be qualification for financing.

The dream of a private backyard and a white picket fence is deeply rooted in our society which will keep demand up. My prediction is we will see a stabilizing of these conditions moving forward. The volume of transactions may decline but underlying market dynamics, principally demand and low supply, will buoy sales prices.

Predictably, we are reading more and more doomsday comments about significant price declines because among other key factors, interest rates are rising. But the offsetting demand, I expect, will counter that thought. We have seen this wishful thinking before. A well priced property sells in approximately 3 weeks, provided it is priced within 5% of market value. Looking at it with a seasonal perspective, the market is reasonably active in all categories of properties right across the GTA.

If you are interested in finding opportunities in today’s real estate market, you need a knowledgeable broker that can give you the information you need to make a good decision for you and your family. A full time, experienced realtor like me, associated with a great company like RE/MAX Realtron! Give me a call, let’s chat, after all you have a friend in the business who is, you know….the Point Man In Real Estate! 

To A Good Life!

Sam Chaim⁠ - Your Point Man in Real Estate
Making A Difference For You!
Re/Max Realtron⁠
416-543-7252⁠
sam@samchaim.com⁠

Read Full Market Stats Report

Some interesting facts about the real estate market activity in July:

Sales activity continues to slow in the face of rising interest rates and uncertainty but the market still continues to be strong. ⁠

Wondering how this impacts your home buying or selling decision? Are you interested in moving out of the province? Connect with me to discuss your options and for a trusted referral.⁠

To A Good Life!

Sam Chaim⁠ - Your Point Man in Real Estate
Making A Difference For You!
Re/Max Realtron⁠
416-543-7252⁠
sam@samchaim.com⁠

Watch Video

June 2022 Stats are out & borrowing costs continued to impact the amount of homes sold. 6,474 sales occurred last month, down by 41% compared to last year's strong result. The number of transactions was also down compared to May 2022, but this is often the case due to the seasonal nature of the market.

The average selling price, at $1,146,254, remained 5.3% above the June 2021 level, but continued to trend lower on a monthly basis. The MLS® Home Price Index Composite benchmark was up by 17.9% year-over-year, but also experienced a month-over-month dip compared to May.

Annual price growth was driven more so by less expensive market segments, including townhouses and condominium apartments.

While the number of transactions was down year-over-year, the number of new listings was little changed over the same period. This has provided for more balance in the market, resulting in a more moderate annual pace of price growth.

Contact me with questions as to how this impacts your buying or selling decisions!

To A Good Life!

Sam Chaim⁠ - Your Point Man in Real Estate
Making A Difference For You!
Re/Max Realtron⁠
416-543-7252⁠
sam@samchaim.com⁠

Read Full Market Stats Package

No surprise as the Toronto Real Estate Board released the May sales numbers. 7,283 properties sold with an average sale price at $1,274,869, up 16.4% since the end of 2021.  GTA Realtors meanwhile listed 18,679 homes for sale year to date. There were 7,283 sales in May 2022 – down 38.8% compared to May 2021 and down 9% compared to April 2022. 

The number of new May listings was like last year’s level and edged up on a month-over-month basis. With sales down and new listings trending flat to slightly up, the number of active listings was up on a year-over-year basis by 26%. Without a doubt, the increase in mortgage rates is a real concern as many are waiting to see the impact on prices but market conditions remained tight enough to support an overall average selling price of $1,212,806 for May 2022, representing an annual growth rate of 9.4%.

The reality of the market has not changed. Due to a shortage of homes for sale, prices in January and February rose at an unsustainable rate of 25%+. In March, sellers with inexperienced Realtors continued to offer properties for sale at significantly higher prices than the previous sales and, not surprisingly, buyers balked as homes stopped selling almost overnight. With the mortgage rate increase taking some buyers out of the market and others waiting to see what happens, the number of homes sold dropped compared to last year. The impression and Buyers’ hope is that home prices will keep declining.

The problem is, “Hope” is not a strategy. Hope supports realistic optimism, a necessary component of success. But If the market turns back up, as we have seen before, e.g. 2018, and interests rise again, buyers will be further disadvantaged. The other factor is, no matter whether you are buying or selling, putting on hold your life needs and that of your family is costly in more ways than just monetarily.  We need only think back over the past 2+ years to recognize that.

This is also an amazing time to increase your investment portfolio. It’s said “don’t time the market”, but it is also said, “buy the dip” if the opportunity presents itself. Give me a call and let me show you the reality of the market and how you can turn it to your advantage.

Pareto’s Principal says that 20% of sales people do 80% of the sales in any field. As a full time, professional & experienced realtor and businessman have the pricing & marketing strategies and negotiating skills to make it work for you. As a top performer and being with Remax, the largest multinational real estate company marketing properties world-wide, you need me and Remax!

You can read the full May report and/or call me to talk about your personal situation, your hopes, and dreams. There is no obligation and perhaps we can plan together to turn your hopes into your reality.

Have a great June and start of summer.

To A Good Life

Sam Chaim⁠ - Your Point Man in Real Estate
Making A Difference For You!
Re/Max Realtron⁠
416-543-7252⁠
sam@samchaim.com⁠

The GTA housing market continued its adjustment to higher borrowing costs, with the number of transactions down on a monthly and annual basis. There were 8,008 homes sold in April 2022 – a 41.2% decrease compared to April 2021 and a 27% decrease compared to March 2022.

On a year-over-year basis, the decline in sales was greater in the ‘905’ area code regions surrounding Toronto, particularly for detached houses. The benchmark price was up by 30.6% year-over-year in April 2022 but was down in comparison to the March level. The average selling price, at $1,254,436, was up by 15% compared to April 2021, but down compared to the average selling price of $1,300,082 in March 2022.

Contact me with questions as to how this impacts your buying or selling decisions!

To A Good Life!

Sam Chaim⁠ - Your Point Man in Real Estate
Making A Difference For You!⁠
Re/Max Realtron⁠
416-543-7252⁠
sam@samchaim.com⁠

Read Full TRREB Market Report

Great news is that there were no big surprises that will immediately impact our real estate markets in the April 7th budget. For now, let’s focus on Budget announcements that could touch us as Buyers, Sellers or Homeowners. There are some specific initiatives put forward that will help more Buyers get into the market which in turn will sustain future market resiliency for Sellers.

While the 2022 Federal Budget must still receive Parliamentary approval, here are key proposals within the Budget that touch on our housing markets:

1. Introduction of a Tax-Free First Home Savings Account (FHSA) - Designed to help First Time Home Buyers, Taxpayer Account Holders will be able to contribute up to $8,000 per year towards the purchase of a first home. An FHSA combines the features of both an RRSP and a TFSA.

• Like a Registered Retirement Savings Plan (RRSP), contributions will be eligible for an income tax deduction and the money will grow tax free inside the account.

• Up to $40,000 can be contributed, and then be withdrawn to purchase a first home, without tax consequences.

Details are sure to be released soon as the FHSA plan is expected to launch in 2023.

As a thought – Wouldn't it be wonderful if the FHSA and RRSP Home Buyers' Plan (HBP) could be combined into a super-sized down payment for a First Time Home Buyer purchase? But it's likely not possible. So, it seems to be a future choice of the HBP or the FHSA. Advantage going to the FHSA, because repayment is not required, as would otherwise be if using the HBP.

2. Doubling of the First-Time Home Buyers’ Tax Credit. This income tax credit applies to a qualifying “first home” purchased during the tax year. The updated credit increases from $5,000 to $10,000, which will put $1,500 back into a Buyer’s pocket. This increase is set to be available for the 2022 tax year.

3. Doubling the Home Accessibility Tax Credit. Individuals can receive 15% in tax relief on up to $20,000 in eligible renovations (up from $10,000) for a tax deduction of up to $3,000. Generally, eligible expenses are for updates that assist seniors, or those entitled to the Disability Tax Credit, to make their homes more accessible.

4. Introduction of a Multi-generational Home Renovation Tax Credit to help families create a multi-generational home. Starting in 2023, this refundable credit would allow families to claim 15% of up to $50,000, to a maximum of $7,500 for eligible renovation and construction costs incurred to construct a secondary suite.

5. Extension of the First-Time Home Buyer Incentive, which allows eligible first-time home buyers to lower their borrowing costs by sharing the cost of buying a home with the government. This Plan has been extended to March 31, 2025.

6. Support of Rent-to-Own Projects to help make it easier for renters to get on the path of home ownership while renting.

7. Modification of the Principal Residence Exemption (PRE) – New tax rules for “property flipping” aimed at individuals who sell their principal residence within 12 months of purchase. According to the budget, the measure would apply to residential properties sold on or after January 1, 2023.

Two things that were surprisingly left out of this budget were the rumoured reintroduction of 30-year amortization for Canada Mortgage and Housing Corporation (CMHC)-insured mortgages for first-time home buyers. And the reduction of the mortgage insurance fees charged by CMHC. However, if home prices and/or interest rates continue on the upward trajectory, these programs could easily be re-visited.

Questions? Want to know more about market activity in your  neighbourhood? I always invite your calls.

To A Good Life!

Sam Chaim - Your Point Man in Real Estate
Making A Difference For You!
Re/Max Realtron⁠
416-543-7252⁠
sam@samchaim.com⁠

*Federal Budget information as above outlined is pending parliamentary approval. Details gathered at the time of release are presented for information only and may be altered or adjusted by the time the Budget is approved & then implemented.

There were almost 11,000 Greater Toronto Area (GTA) home sales reported in March 2022, capping off the third-best March and second-best first quarter on record. Tight market conditions continued to support a double-digit annual pace of price growth, with an average selling price of $1.3 million.

The average selling price dipped slightly month-over-month, bucking the regular seasonal trend. New listings were also down on a year-over-year basis, but by a much lesser annual rate than sales. This suggests that while market conditions remained very tight, homebuyers did not experience the same level of competition from other buyers compared to a year earlier.

Contact me with questions as to how this impacts your buying or selling decisions!

To A Good Life!

Sam Chaim - Your Point Man in Real Estate
Making A Difference For You!
Re/Max Realtron⁠
416-543-7252⁠
sam@samchaim.com⁠

Has the recent interest rate increase affected the market? Are all homes selling with multiple offers Should I wait to sell my Home? Should we wait to purchase a home?

The answers and so much more information is shared by RE/MAX Realtron Broker/Owner Alex Pilarski and V.P. Agent Experience, Jeremy Pilarski. Listen to their take on the real estate market and their prediction for what’s next. Send me a message and let me share more information that will help you make the Right Move!

To A Good Life!

Sam Chaim⁠ - Your Point Man in Real Estate
Making A Difference For You!
Re/Max Realtron⁠
416-543-7252⁠
sam@samchaim.com⁠

Watch Video

February home sales were down compared to the all-time record in 2021, but represented the second-best result for the month of February in history. New listings dropped, but by a marginally lesser annual rate than sales, pointing to a modest move to a slightly more balanced market. Competition between buyers, however, remained tight enough to support double-digit price growth year-over-year.

There were 9,097 sales reported through the Toronto Regional Real Estate Board's (TRREB) MLS® System in February 2022, representing a 16.8 per cent decrease in the number of sales compared to February 2021.

The supply of listings for low-rise home types (detached, semi-detached and townhouses) was also down year-over-year, but not by as much as sales. In the condominium apartment segment, particularly in Toronto, new listings were up in comparison to February 2021.

To A Good Life!

Sam Chaim⁠ - Your Point Man in Real Estate
Making A Difference For You!
Re/Max Realtron⁠
416-543-7252⁠
sam@samchaim.com⁠

Read Full Report

Thinking of Selling? Word Of Advice from Thornhill Realtor Sam Chaim...Don't Wait For Spring!

To A Good Life!

Sam Chaim⁠ - Your Point Man in Real Estate
Making A Difference For You!
Re/Max Realtron⁠
416-543-7252⁠
sam@samchaim.com⁠

Watch Video
Home Evaluation Form

The demand remained strong for homeownership from a historic perspective while at the same time, inventory remained in short supply contributing to tighter market conditions and year-over-year price growth. 5,636 sales were reported in January 2022 which is down by 18.2% when compared to January 2021. Though sales were down, the sales that did occur resulted in the second-best average for the month. Home price increased by 33.3%.

Contact me with your questions about how this impacts your buying or selling decision!

To A Good Life!

Sam Chaim⁠ - Your Point Man in Real Estate
Making A Difference For You!
Re/Max Realtron⁠
416-543-7252⁠
sam@samchaim.com⁠