Andre Smit's Real Estate Round-up

Hi Folks,

So, the Bank of Canada, has decided to hold the overnight lending rate at 2.75% again. This is mainly due to the uncertainty gripping the world at the moment. There is definitely still an over supply of listings currently, which has caused the real estate market to continue to soften.

Now that the Liberal party has managed to secure an un elected majority government, I fear that they may resuscitate their tax lucrative idea of including the sale of primary homes, for the first time, in the current capital gains tax legislation. This will be a devastating blow to senior home owners hoping to downsize, and thereby releasing part of the equity in their current homes for investment, in order to supplement their current pension incomes. If that happens we may see a flood of new listings on the market, thereby further softening an already brittle real estate market. Obviously this will benefit all the forms of current buyers!

Returning to the current market. The actual sales to new listings ratio, has moved down to 35% from 36% last month, which still indicates a firm buyers' market. Remember that if the ratio is above 60%, then it indicates a sellers' market, and if below 40% a buyers' market.

According to the Toronto Real Estate Board, (the largest in Canada), compared to March last year, total new listings for all homes decreased by 16.3%, while total actual physical sales were up by 0.6%. This resulted in the average price for all homes, decreasing by 6.9% from the same month, the year before. The average days that listings spent on the market, before selling, has increased from 24 days to 31 days, or by 29%, for the same period!

Average detached house prices have decreased by 6.7%, compared to March, 2025. The number of total new listings decreased by 14.3%, compared to the same period, last year. The average days that listings spent on the market, before selling, has increased to 28 days from 23 days last year or by 21.7%. However actual physical sales, in this category were up by 3.7% year on year.

Average condominium apartment prices have decreased by 9% for the same period, while new listings decreased by 18% over the same month last year. The average days that listings spent on the market, before selling, has increased from 32 days to 39 days, or by 21.9%, for the same period. Actual physical sales, in this category were up by 1.3%.

It is good to see that new listings have decreased overall year on year. However, the buyers' market is expected to continue for at least the rest of the year. There are certainly bargains to be bought out there! My advice to younger buyers is to make sure that they have a handle on where they want to live, what type of accommodation will suit them and to pre-arrange their financing so that they can pounce when they find a home that ticks all the boxes.

This is traditionally the time when sellers start preparing their homes for sale.

That is why, this month, I am going to focus my round-up, on preparing your home for sale. It is estimated that most families in the GTA, sell their homes at least 4 times in their lives, for various reasons, as they go through the cycle of life.

When preparing your home for sale, the main objective is to find at least 1 keen buyer, who sees enough value in your home, to make an acceptable offer, within a reasonable time frame.

We spend most of our lives personalizing our homes for our increased enjoyment. However, when the time comes to sell, we need to de-personalize our home, and present as neutral a canvas, as possible, in order to attract as many potential buyers, as possible. Here is a list of things to consider completing, before opening your doors to these potential buyers:

       - Replace worn welcome mat at front door
       - Ensure that the front door bell is working
       - Cut lawn and remove weeds
       - Add flowers to front walk up area
       - Clean front door and re-paint, if necessary
       - Polish brass door handle and knocker
       - Clean garage door and paint, if necessary
       - Power wash driveway, walkway, siding and deck
       - Repair broken fencing
       - Clean all windows, (outside and inside)
       - Tidy up garage
       - Tidy up all storage areas
       - Plan a trip to the dump, to get rid of all surplus items collected over the past years and

that are no longer needed

- Ensure all walls have light warm colours

       - Do not block off natural light, which provides added warmth to your home
       - Scale down furniture, wherever possible, so as not to over crowd any rooms 
       - Make sure that all light fixtures are working, with fresh bulbs
       - Polish, sand or replace worn hardwood floors
       - Steam clean or replace worn carpets
       - Clean kitchen and bathroom tiles and grouting
       - Remove all traces of inside moisture mould from windows and glass sliding doors
       - Replace discoloured, chipped, cracked or loose wall switch and electrical outlet covers
       - Repair dripping faucets
       - Fix sticking doors and ensure automatic door closers are working
       - Fix holes and chips in walls and repaint
       - Replace caulking around sinks, faucets, windows, doors and tubs, where necessary
      
For open houses and showings, the following should be considered, in addition to the above:

       - Try not to leave any pets at home, and remove all traces of pets, prior to the showing
       - Spray inside the home with a good air freshener
       - Empty all trash containers in the house, as if you were getting ready for the weekly pick

up
       - Dust all counter tops and furniture
       - Clean BBQ grill
       - Wash dishes and store away
       - Clean oven, refrigerator, dishwasher and microwave oven, inside and out
       - Turn on all the lights
       - Place vases of fresh flowers in all the sitting areas
       - Place a bowl of fresh fruit in the kitchen

All this, together with a great realtor, (look no further!), should assist you in getting the best possible price for your home in any real estate market. As in life - "the more you put in, the more you will get out!"

SMIT'S REAL ESTATE TIP OF THE MONTH:
 

Check and clean gutters, down drainage spouts and splash blocks. Make sure that there is no blockage in the downspout, and that water is not holding in one area of the gutter. Ensure that drain water is being carried away from your foundation.

Folks, thank you for considering all of the above. Once again, if you, your family or any friends have any questions regarding real estate, or indeed, require the services of a great realtor, please do not hesitate to contact me, at anytime.

Until next month,

Stay dry, warm and safe!

Remember, to watch out for the spring flowers!

Kind regards,

André