South Forest Hill Residences reviews.The real estate agent advised the seller to reduce the price. Those who sell houses in King’s Town, Ontario, Canada, will no longer get the profits their neighbors made earlier this year.Please Visit: South Forest Hill Residences reviews to Get Your VVIP Registration Today!
Now, real estate agents require sellers to price their homes flexibly and stop comparing themselves with neighbors who sell at much higher prices, otherwise their homes will not be sold.
Falling house prices and fewer listings in King Town show how rising interest rates to combat inflation have cooled the housing market across the Greater Toronto area.
But some real estate agents say prices have been too high before and are bound to fall, while current prices are more “normal”.
“We have to revise the expectations of sellers. Of course, it’s hard to tell people that they won’t get the profits their neighbors got three or four months ago, and they will be significantly lower, “said Julianne Boileau, a broker at RE/MAX Hallmark York Group Reality.”
According to data released Thursday by the Toronto area Real Estate Board (TRREB), prices of detached homes in most parts of Greater Toronto are falling sharply, with prices in King Town plummeting even more.
King Town is famous for its rolling green hills, large mansions and idyllic country life. Its average sales and selling price fell from 38 houses in February to C $1664046 in July.
Since March 2022, the Bank of Canada has raised interest rates despite high inflation, the biggest increase since 1998, announced on July 13. This raises the bank’s benchmark interest rate to 2.5%.
Sales in the greater Toronto area are down 47% compared with July 2021 and are expected to decline further by 2023. This scares some sellers.
Boileau said her clients were “dumbfounded” and wondered why they couldn’t sell their homes at the same price as their neighbors sold at the beginning of the year. “now, the problem you face is the listed price,” she said.
RE/MAX Realtron Vadim Vilensky Realty Inc. Although prices have fallen sharply in the past three months, prices are not much different from those of the previous year, said Vadim Vilensky, a broker.
In July 2021, the average selling price of 48 houses in King Town is C $1921694.
What really caught Vilensky’s attention was the small number of listings in areas like King Town, with only 20 houses sold in July 2022. He said that in the current environment, sellers are unable to sell houses because of the small number of listings, “he said.
His clients are frustrated because they have been studying how their neighbors sell their houses for more than C $1 million. But Vilensky explains that their homes still have good profit margins compared with the summer of 2021.
“Yes, you have dropped from this year’s peak, which is a crazy peak. But you are still much taller than last year, “he said.
Daniella Battaglini, a real estate agent at Laceey Real Estate, said the price seen in Kings Town in February was unrealistic and was an almost “crazy” peak.
“this is the highest price we have ever seen,” she said. Despite high prices in the first quarter, sales are still falling compared with 2021.
Battaglini says Kings Town has many high-end estates and any newly built or newly renovated property is good. She says many people now want to reduce construction costs.
“this pattern has been going on, and our sales are getting smaller and smaller. And I think everyone is waiting, “she said.”
Buyers are currently in a “position of power”, but that could change quickly, she said. Current prices are “more normal” as they fall.