A few weeks ago I was speaking to some clients and customers about moving up to larger more spacious homes. Most wanted to however there was common thread among everyone for not wanting to make the move right now and that was “it seems larger homes are increasing in value so much quicker”. This may be true but it is a bit of a misconception – it seemed larger homes were increasing quicker because that is what they are focused on right now. Most people are only looking at the homes they would like to move up to and not the values of the homes they are in. Having uncovered this little nugget I thought it would be cool to do some research for some of those people. Most people I spoke to are currently living in smaller Townhomes so i picked a street that is made up of entirely townhomes and ran some numbers from 2010 to today.
Here is what I found out:
Street “A” Located in North Oshawa – 3 Bedroom + 3 Bathroom Town-Homes with roughly 1500 – 1600 square feet
2010 Average Sale Price $233,250 with the highest sale being $258,000
2011 Average Sale Price $239,480 with the highest sale being $247,900 – Based on Average Sale price that is an increase of only 2% from 2010 to 2011
2012 Average Sale Price $264,633 with the highest sale being $274,900 – Based on Average Sale price that is anincrease of 10% from 2011 to 2012
2013 Average Sale Price $294,378 with the highest sale being $319,500 – Based on Average Sale price that is an increase of 11% from 2012 to 2013
That is an amazing increase in just 4 years – I am not sure if any standard investments have performed as well and provided that much of a return. At the low end of the spectrum there is potentially $61,128.00 worth of equity in your home. Not to mention most Canadians are very responsible in paying down their mortgages which means there might be even more equity available that will allow them to move up to the larger and more spacious home or acquire a home in the neighbourhood they have always wanted to be in, the one with the mature trees lining the street with great schools and with walking distance to all amenities.
If you are interested in finding out more about the street you live on or the neighbourhood you call home, please feel free to give me a call and I can provide the same level of research that will help you with your own decisions. Deciding to buy and or sell is a huge decision and should be made when you have all of the most relevant information you can obtain. Being well informed can save you thousands of dollars!
If you or someone you know is considering buying a home or selling their own home please have them contact me I would be happy to help with all of their real estate needs!
We Sold their Townhouse in Brooklin in 8 days and for slightly over the asking price – they were thrilled with the process. We made great use of our Exclusive Listing process to generate a great amount of interest before the property even hit the market. I have pasted their facebook post below as a bit of a testimonial
Listed Thursday, open house Saturday, SOLD Sunday evening after multiple offers, for over asking! Bam! Next chapter hear we come! Goodbye lovely first home, memories to last a lifetime! – a BIG thank you to our agent Scott Roy for his quick and efficient work, alongside patient building of a great relationship over the last 4 years! Cheers!
Shane and Christine
Thank you for your trust and the opportunity It was a lot of fun getting your home ready for the market and subsequently presenting your gorgeous home to the open market.
Contact me today for details on how to get your home sold for top dollar
Although the headline may indicate the following article would favour sellers, there is also some good information that buyers should be aware of as well. This following article was taken from Mark Weisleder’s column in the Toronto Star dated Friday November 8th 2013:
In general, the courts have indicated that buyers must act honestly, reasonably and in good faith. Unfortunately this will have to be proven in court, which means lawyers, legal fees and the potential for the deposit to be withheld for up to two years.
Sellers are not entitled to a copy of the inspection report unless the parties agreed to it. In my opinion, sellers should always include a contract clause that says if the buyer wants to negotiate a reduction, or cancel the deal because of problems in the inspection report, then the buyer must give the seller a copy of the report. This will give the seller the opportunity to check the problems for themselves and be able to explain it to any future buyer.
If the buyer does not conduct the home inspection at all, or perhaps brings in an unqualified person to conduct the inspection, then I believe that these might be examples of not acting reasonably and in good faith. It would then be difficult for a buyer to try and cancel the agreement and argue that they acted in good faith. That’s why it is so important that buyers always use qualified home inspectors.
In a seller’s market, many buyers decide not to include a home inspection condition so they can provide a “clean offer” to the seller. This usually happens when there is a bidding war.
But there are other ways to protect buyers in these circumstances. For example, you can arrange for a home inspection before you bring your offer. Most sellers will be agreeable to this. You are only asking for trouble if you don’t conduct a home inspection before you decide to buy.
In addition, if a buyer is not in a bidding war, consider two deposits, a small one when the deal is accepted, and a larger once you are satisfied with all of your conditions. That way, if you are not satisfied, there is not much of a deposit that will be worth fighting over.
It is very important for buyers to understand all your legal rights and obligations relating to conditions before you bring any offer to buy a home.
The general real estate market is slightly different in Durham Region however with many people from Toronto moving to the smaller suburban cities such as Ajax, Whitby, Oshawa & Bowmanville, buyers and eventually sellers will be having the same or similar expectations when purchasing a home or listing their homes for sale.
For all of your real estate needs in Durham Region please feel free to contact me directly
What Type of Information are you looking for when it comes to selling your home or buying a new home?
Would you like to know if a type of home or a home in a specific neighbourhood is increasing in value or decreasing in value?
Continuing on with my research about Townhomes in Durham Region I found the following information to be very interesting . Focused on a niche neighbourhood in Whitby made up entirely of Townhomes that have all of the same criteria (3 Bedrooms + 3 Washrooms). My research indicates that these Townhomes increased by 14% in value over a 2 year period . That type of increase translates to a dollar value of $41,257.00.
I would think this type of information would be very helpful if you were considering making a move. If you are considering a move please contact me directly
As I continue to research various properties across communities and neighbourhoods it has become clear that Attached Townhomes or Townhouses are very popular.
I have researched 2 specific areas in Oshawa and Whitby for Townhomes and the basis for the research is a bit easier as there is a common benchmark for these types of homes. Most of the recent builds in the area provide 3 Bedroom and 3 Washrooms and provide roughly 1400 – 1700 square feet. There are some Townhomes that provide additional upgrades such as a lucky few that have a walk out or walk up basement. This feature is truly valuable as accessing the back yard is much easier and and so is storing your garden tools or patio furniture.
In the areas I have researched, there is a consistent increase in the values of these types of homes – It’s not affected by the overall price of the Home as the percentage increase seems to be the same not matter if you are talking about a $240,000 home or $300,000 (yes some Townhomes are selling in excess of $300,000 – just look at Brooklin and the area of Williamsburg in the western portion of Whitby). These homes have experienced growth on average of roughly 5% – 7% over the last 2 years. Now this is not an exact science but it’s close as I can get based on recent sales. I went one step further and have broken down some of the research to the individual streets in a certain neighbourhood. My best example would be some research I did in Whitby where 3 streets had a variation of $4,500.00 from street to street. This is most likely due to small neighbourhood influences such as location of the street. The main street that is the feeder from the major street such as Thickson, Harmony or Rossland usually has a slightly lesser value because it is a busier street and sometimes can be a nosier street.
Back to the research – Lets say you Purchased a Townhome from a builder 4 years ago for $230,000 if we only calculate a 5% increase over the past 2 years, your value has increased to $253,575 (calculated using a 5% increase for 2 years) and that is on the conservative side. Now factor in we are in a bit of sellers market you might realize a bit more increase in value.
Townhomes are also very popular because they appeal to the widest cross section of buyers – First time home buyers like them because they are manageable and affordale to maintain. People retiring also like them because most are downsizing from a larger 2 Storey home but do not want to give up on some of the conveniences they have had over the last 15 – 20 years. Townhouses today quite often have Master En-suites and Walk-In Closets, Not to mention most have larger, modern and well laid out kitchens. Townhomes are quite often built in very convenient locations – Close to Shopping, Public Transit and recreation areas.
For More Information on Townhomes – whether you are looking to purchase one or move up from your existing Townhome please contact me and I will provide you the appropriate research and information so you can make a well informed decision.
Side Note: If anyone can tell me the exact or correct spelling of Townhome / Townhouse I would sincerely appreciate the feedback. It would appear spell check and my proof reader don’t like either version