Agents Making $1,000 an Hour
While no one would suggest that homes sell themselves, thanks to online listings and a years-long real estate boom, Toronto Realtors® continue to experience remarkable success selling a large volume of properties over shorter periods of time. To shine a light on Realtors® commissions for Canadian consumers, a new study by Toronto real estate firm, TheRedPin crunched the numbers to find that a surprising 2,826 Toronto/GTA homes sold in just one day in 2014.
In total, 8,477 GTA homes sold in three days or less - for an estimated 15 hours of work; a closer look at the TheRedPin's numbers shows that in these instances, Realtors® made a remarkable rate of $1000 per hour. With Ontario's minimum wage in at $11.00 per hour, these Realtors® made a shocking 9090% more than personal support workers, lifeguards, and nursing assistants, all of whom earn minimum wage.
TheRedPin searched all 2014 TREB listings in Toronto, Durham, Peel, York Region and Halton Region to find homes that sold in one, two or three days. Based on an average home price of $556,000 and an estimated 15 hours of work to sell a home in three days or under, 8,477 Realtors® made an average of $1000 per hour, based on an average 2.5% commission.
Of course not every home is going to sell in less than three days but the fact that 8,477 did last year speaks to the need for re-evaluating Realtor® commissions. We don't believe agents should be earning in one day what some people earn in a year. If anything, more money should be in the hands of consumers.
March 26, 2015 | Permalink
Toronto homes get pricier
Toronto Real Estate Board President Paul Etherington announced that Greater Toronto Area REALTORS® reported 3,838 sales through the TorontoMLS system during the first two weeks of March 2015. This result represented an 11.8 per cent increase compared to the same period in 2014. New listings were also up over the same period, but by a lesser annual rate of 8.4 per cent.
“Strong year-over-year growth in home sales continued during the first half of March for most home types in the GTA, both in the City of Toronto and the surrounding regions. This suggests that households continue to view the purchase of a home as a quality long-term investment. But for a lack of low-rise listings in some neighbourhoods, it is quite possible that the number of sales could have been higher,” said Mr. Etherington.
The average selling price for transactions reported during the first two weeks of March was $620,106 – up by 10.6 per cent compared to the same period in 2014. Price growth was driven by low-rise home types, including detached and semi-detached houses and townhouses.
“The fact that sales growth has continued to outpace listings growth suggests that there is pent-up demand in the marketplace, especially for singles, semis and townhouses. This is why we have experienced a sustained period of strong price growth for low-rise home types. So far in March, we have also experienced a greater share of high-end detached home sales compared to the same time frame in 2014. This has also influenced growth in the average selling price,” said Jason Mercer, TREB’s Director of Market Analysis.
March 18, 2015 | Permalink
Over One Million Dollars ...
The Average Price of a Detached Toronto Home
Toronto Real Estate Board President Paul Etherington announced that Greater Toronto Area REALTORS® reported 6,338 home sales through the TorontoMLS system in February 2015. This result represented a substantial 11.3 per cent year-over-year increase compared to February 2014. Large annual increases in transactions were noted for most major home types, in the City of Toronto and surrounding GTA regions.
“Even with the record low temperatures last month, we still saw an increase in the number of people purchasing homes in the GTA. This speaks to the importance households place on home ownership and the fact that buyers continue to view ownership housing as a quality long-term investment in which they can live,” said Mr. Etherington.
The overall supply of homes for sale, as measured by the count of active listings at the end of February 2015, was down by 8.7 per cent compared to the same count in February 2014. This means that market conditions became tighter, leading to more competition between buyers.
The overall average selling price for February 2015 home sales was $596,163 – up by 7.8 per cent compared to the average for February 2014. Driving this increase was the detached market segment. In the City of Toronto, the average detached selling price moved above $1 million dollars for the first time in a calendar month.
“The strong year-over-year price growth we experienced in February points to the robust demand for ownership housing in the GTA, coupled with a constrained supply of homes for sale in some market segments, especially where low-rise home types like singles, semis and townhouses are concerned,” said Jason Mercer, TREB’s Director of Market Analysis.
See full details on the Toronto Real Estate Board's Market watch Report
Pay What You Want MLS® Listing
What happens when you can list your home PWYW?
We're not sure ... but we're finding out. Engaging in an act of blasphemy in the real estate industry, we have replaced traditional fixed MLS® listing fees with a pay-what-you-want policy.
Our Feeless MLS® Listing is a solution for you to list, promote and manage the sale of your property at a cost determined by you. While other real estate brokerages contract for substantial percentage fees, our mission is to empower our clients to realize more -- figuratively and literally. The price you pay for our MLS® listing, marketing and agency services is completely up to you.
We know, we know ... what’s the catch?
Well, there isn't one. We call it FairFee. If you appreciate and value the service you receive from us we’d truly appreciate your consideration. If you wish to pay nothing ... so be it.
Our purpose is to empower home sellers to disengage from inequitable real estate practices. We partner with and invest in our clients to create mutually satisfying outcomes.
Here's the nitty-gritty of how our Feeless Plan works ».
Toronto Real Estate Market Report
Toronto Real Estate Board President Paul Etherington announced that Greater Toronto Area REALTORS® reported a 14.9 per cent increase in the number of sales entered into the TorontoMLS system during the first two weeks of February 2015 compared to the same period in 2014. There was a total of 3,120 home sales during the first 14 days of February 2015.
The number of new listings entered into the TorontoMLS system was also up on a year-over-year basis, but by a lesser annual rate of 3.5 per cent.
“As households continue to take advantage of the great diversity of home ownership options in the Greater Toronto Area, home sales have continued to trend upwards. While home prices are higher compared to this time last year, borrowing costs are lower. Home buyers are still finding affordable options to meet their housing needs,” said TREB President Paul Etherington.
The average selling price for the first half of February 2015 was $602,110, representing a 10.3 per cent increase compared to the average reported for the same period in 2014. Annual price growth continued to be driven by the tight low-rise market segment, with double-digit growth reported for detached and semi-detached homes.
“With tight market conditions continuing to prevail in most parts of the Greater Toronto Area, especially where low-rise home types are concerned, it is no surprise that we continue to see strong competition between buyers leading to robust annual rates of price growth,” said Jason Mercer, TREB’s Director of Market Analysis
February 19, 2015 | Permalink
Toronto Real Estate Market Report
Toronto's housing market gets off to surging start in 2015
Toronto Real Estate Board President Paul Etherington announced a strong start to 2015, with robust year-over-year sales and average price growth in January. Greater Toronto Area REALTORS® reported 4,355 home sales through the TorontoMLS system during the first month of the year. This result represented a 6.1 per cent increase over January 2014. During the same period, new listings were up by 9.5 per cent.
"The January results represented good news on multiple fronts. First, strong sales growth suggests home buyers continue to see housing as a quality long-term investment, despite the recent period of economic uncertainty. Second, the fact that new listings grew at a faster pace than sales suggests that it has become easier for some people to find a home that meets their needs," said Mr. Etherington.
The average selling price for January 2015 home sales was up by 4.9 per cent year-over-year to $552,575. The MLS® Home Price Index (HPI) Composite benchmark was up by 7.5 percent compared to January 2014.
"Home price growth is forecast to continue in 2015. Lower borrowing costs will largely mitigate price growth this year, which means affordability will remain in check. The strongest rates of price growth will be experienced for low-rise home types, including singles, semis and town houses. However, robust end-user demand for condo apartments will result in above-inflation price growth in the high-rise segment as well," said Jason Mercer, TREB's Director of Market Analysis.
See the Toronto Real Estate Board's Market Watch Report »
Toronto Average Selling Price Dips
Toronto Real Estate Board President Paul Etherington announced that Greater Toronto Area REALTORS® reported 1,409 sales through the TorontoMLS system during the first 14 days of January 2015. This result was up by 9.8 per cent compared to the same period in 2014. Sales were up on a year-over-year basis for many of the low-rise home types and for condominium apartments as well.
“Despite the cold weather, home buyers remained quite active during the first two weeks of the New Year. Households continued to take advantage of the diversity of affordable housing options available throughout the Greater Toronto Area,” said Mr. Etherington.
The average selling price for January mid-month transactions, at $510,532, was down slightly in comparison to the same period last year.
“The slight dip in the average selling price reflects the fact that we saw a different mix of homes sold this year compared to last year during the first two weeks of January, as evidenced by a lower average listing price. The month-end MLS® HPI Composite Benchmark price and the average selling price will provide a clearer view on prices,” said Jason Mercer, TREB’s Director of Market Analysis.
Toronto Real Estate Market Report
GTA Realtors® Report Resale Housing Market Figures
Toronto Real Estate Board President Paul Etherington announced that Greater Toronto REALTORS® reported 92,867 residential sales through the Toronto MLS system in 2014, including 4,446 in December. The calendar year 2014 sales result represented a 6.7% increase over the 2013 sales figure of 87,049 and was just short of the record set in 2007.
"TREB's 2014 sales figures are a testament to the importance Greater Toronto Area households continue to place on home ownership. GTA households realize that home purchases have been a quality long-term investment. While home prices certainly increased substantially in 2014, the purchase of an average priced home remained affordable, in terms of the average household's ability to comfortably cover their monthly mortgage payments," said Mr. Etherington.
The average selling price continued to grow on a year-over-year basis in calendar year 2014, with an 8.4 per cent increase over calendar year 2013 to $566,726. This included a seven per cent increase in the December 2014 average selling price to $556,602. Throughout 2014, annual increases in the average selling price and the MLS® HPI Composite Benchmark were consistently reported on a monthly basis for most market segments, from detached homes through to condominium apartments.
"The strong price growth we experienced in 2014 can be explained with two words: listings shortage. The constrained supply of listings was especially evident for low-rise home types like singles, semis and town houses. The number of households looking to purchase these home types increased, while the number of homes from which they could choose decreased. This situation resulted in more competition between buyers and more aggressive offers," said Jason Mercer, TREB's Director of Market Analysis.