October Statistics
There is a 49.1% drop in sales this October 2022 compared to last year, October 2021. There was a change in other economic factors namely unemployment rate and employment growth, which both inclined compared to last year’s statistics. Average sales price of homes has decreased by 5.7% compared to last year and the number of new listings decreased by 11.6% compared to last year, October 2021. Home owners are generally concerned and wondering whether or not they should sell their property, or hold off until home values appreciate and interest rates go down. Reviewing the current market statistics, it can be seen how the statistics can bring pressure and panic to property owners or property investors, thus questioning whether or not it is the right time to buy or wait? In the past months, Kirby Chan & Co. has consistently sold properties despite the current market status indicating that there are still buyers out there looking to purchase a property. In the Bayview Fairway neighbourhood, 31 Castle Harbour Lane recently sold for $1,601,800. This detached house has 4 bedrooms and 1.5 bathrooms. It has a spacious kitchen and large breakfast room. Another property in this neighbourhood that sold recently is 4 Cypress Point Crt. It is a detached house that has 4 bedrooms and 3 bathrooms which sold for $1,490,500. The home features engineered hardwood in the living, dining and family room along with a finished basement. In the Willowbrook neighbourhood, 16 Henricks Rd recently sold for $1,255,000. This detached house is situated on a quiet street in Willowbrook. The home has 3 bedrooms and 3 bathrooms with a 2-car garage and a balcony. The house also features a finished basement that has a large recreation room that can also be used as a bedroom. Market Statistics Neighbourhoods in Markham Aileen Willowbrook, Bayview Fairways, German Mills and Thornlea had a combined total of 11 houses sold this October 2022 whereas these neighbourhoods had a combined total of 22 houses sold last year, October 2021. In October 2022, Aileen-Willowbrook had a total of 3 houses sold which is 62.5% less than last year, October 2021, which had 8 sales. In October 2022, Bayview Fairways had a total of 2 houses sold which is 33.3% less than last year, October 2021, which had 3 sales. In October 2022, German Mills had a total of 2 houses sold which is the same number of sales as last year, October 2021. In October 2022, Thornlea had a total of 4 houses sold which is 38.5% less than last year, October 2021, which had 9 sales. The average sales price of homes in Aileen Willowbrook, Bayview Fairways, German Mills and Thornlea last October 2021 was $2,073,952 while the average sales price in the four neighbourhoods this October 2022 is $1,603,287. The number of new listings in Aileen Willowbrook last October 2021 was 12 while the number of houses listed this October 2022 was 6. The number of houses listed in Bayview Fairways last October 2021 was 6 while the number of houses listed this October 2022 was 2. The number of houses listed in German Mills last October 2021 was 5 while the number of houses listed this October 2022 was 2. The number of houses listed in Thornlea last October 2021 was 10 while the number of houses listed this October 2022 was 6. There were a total of 16 new listings in Aileen Willowbrook, Bayview Fairways, German Mills and Thornlea combined this October 2022. This is 51.5% less than the number of new listings in these 4 neighbourhoods last year in October 2021. Other than Aileen Willowbrook the average days on the market dropped this October 2022 in Bayview Fairways, German Mills and Thornlea. In Aileen Willowbrook, it took an average of 24 days to sell, which is an increase of 50% compared to last year, October 2021.
November Statistics
There is a 52.24% drop in sales this November 2022 compared to last year, November 2021. Average sales price of homes has decreased by 7.7% compared to last year and the number of new listings decreased by 17.73% compared to last year, November 2021. The number of active listings this November 2022 went up by 51.87% compared to last year. Market Statistics Neighbourhoods in Markham Aileen Willowbrook, Bayview Fairways, German Mills and Thornlea had a combined total of 7 houses sold this November 2022 whereas these neighbourhoods had a combined total of 11 houses sold last year, November 2021. In November 2022, Aileen-Willowbrook had a total of 3 houses sold which is 75% less than last year, November 2021, which had 4 sales. In November 2022, Bayview Fairways had a total of 2 houses sold which is the same as last year, October 2021. In November 2022, German Mills had a total of 0 houses sold which is % less than last year, November 2021, which had 4 sales. In November 2022, Thornlea had a total of 2 houses sold which is 50% more than last year, November 2021, which had 1 sale. The average sales price of homes in Aileen Willowbrook, Bayview Fairways, German Mills and Thornlea last November 2021 was $1,805,419 while the average sales price in the four neighbourhoods this November 2022 is $1,225,146. The number of new listings in Aileen Willowbrook last November 2021 was 4 while the number of houses listed this November 2022 was 3. The number of houses listed in Bayview Fairways last November 2021 is the same number of houses listed this November 2022 which is 2.. The number of houses listed in German Mills last November 2021 was 3 while the number of houses listed this October 2022 is 1. The number of houses listed in Thornlea last November 2021 was 1 while the number of houses listed this November 2022 was 6. There were a total of 12 new listings in Aileen Willowbrook, Bayview Fairways, German Mills and Thornlea combined this November 2022. This is 83% less than the number of new listings in these 4 neighbourhoods last year in November 2021. The average number of days houses spend on the market increased this November 2022 compared to last year, November 2021 in the neighbourhoods of Bayview Fairways, German Mills and Thornlea. House listings in Aileen Willowbrook spent less days on the market this November 2022 compared to last year, November 2021.
December Statistics
There is a 48.2% drop in sales this December 2022 compared to last year, December 2021. Average sales price of homes has decreased by 9.2% compared to last year and the number of new listings decreased by 21.3% compared to last year, December 2021. The number of active listings this December 2022 went up by 169% compared to last year. Market Statistics Neighbourhoods in Markham Aileen Willowbrook, Bayview Fairways, German Mills and Thornlea had a combined total of 4 houses sold this December 2022 whereas these neighbourhoods had a combined total of 9 houses sold last year, December 2021. In December 2022, Aileen-Willowbrook had a total of 1 house sold which is 50% less than last year, December 2021, which had 2 sales. In December 2022, Bayview Fairways had no houses sold in December 2021 whereas last year, December 2021. had a total of 2 houses sold. In December 2022, German Mills had 1 house sold which is 33.3% less than last year, December 2021, which had 3 sales. In December 2022, Thornlea had a total of 2 houses sold which is the same as last year, December 2021. The average sales price of homes in Aileen Willowbrook, Bayview Fairways, German Mills and Thornlea last November 2021 was $1,992,972 while the average sales price in the four neighbourhoods this December 2022 is $1,328,750. The number of new listings in Aileen Willowbrook last December 2021 was 2 while the number of houses listed this December 2022 was 1. The number of houses listed in Bayview Fairways last December 2021 is 2 while there were 0 listings for December 2022. The number of houses listed in German Mills last December 2021 was 3 while the number of houses listed this December 2022 is 1. The number of houses listed in Thornlea last December 2021 was 2 which is the same number as December 2022. There were a total of 4 new listings in Aileen Willowbrook, Bayview Fairways, German Mills and Thornlea combined this December 2022. This is 20.24% less than the number of new listings in these 4 neighbourhoods last year in November 2021. The average number of days houses spend on the market increased this December 2022 compared to last year, December 2021 in the neighbourhoods of German Mills and Thornlea. House listings in Aileen Willowbrook spent less days on the market this Dceember 2022 compared to last year, December 2021.
Real Estate Investment
What is Real Estate? Real Estate refers to any physical property–Land, residential/commercial buildings, underground rights below land and air rights above land. Investment in real estate is done to meet the needs of a buyer or company. Real estate properties and investment play a significant role in the success of an economy. This may also refer to the process of buying and selling a property. Determinants of Real Estate Value There are various factors that either drive up a property’s value or bring it down. Real estate markets attract investors based on its size and scale. For most, the factors influencing the value of real estate and the success of a real estate’s market are the following: Demographics Demographics refers to the specific figures and details indicating the framework of a community. These include population count, density, age, race, gender and population growth. Changes in demographics of a society largely affects the real estate market as this determines the type of properties that are in demand. As an example, neighbourhoods and areas that are known tourist spots drive up demand for vacation rentals and Airbnb properties as many tourists are likely to prefer staying in those instead of hotels. Interest Rate Similar to any other investment, interest rate affects the value of real estate properties. Mortgage loans have either fixed or adjustable rates. Interest rates are increased to try and slow down inflation. This makes it harder for home-buyers to get loans to purchase their property. Interest rates affect capital flow and supply and demand. Condition For residential and commercial properties, the physical build and structure determines how much it is worth. Investors often flip houses to drive up its values as it not only makes the house more attractive to look at but more livable. Cosmetic fixes such as painting and carpets contribute to the livability of the property create more potential for the property Local Market The two types of market are known as the Seller’s and Buyer’s market. A seller’s market is when there are more buyers and fewer homes in the area and a buyer’s market is when there are more homes and fewer buyers. A buyer’s market allows more room for negotiation. A seller’s market tend to sell homes faster as sellers make adjustments to meet buyers' needs. Profit from Appreciation There are several ways you can make profit from real estate. As time goes on, real estate value changes. Appreciation of properties occurs depending on many factors. Whether it’s the location of the property, development or the kinds of fixes and renovations, real estate value varies everywhere you go. Inflation and demand also plays a role in increasing/decreasing the value of a property. With that being said, let’s discuss how different types of properties experience appreciation. Land Property Lands that are located outside of improving communities are likely to gain interest from developers thereby increasing their value. Land properties receive higher value as well when certain minerals and natural resources are found on it—more so when you strike oil but this may also include gravel deposits and trees. Residential Property The value of residential properties depend on the neighbourhood it is located in. Factors such as addition of schools, transit stations, shopping centres and public parks and playgrounds all play a part in increasing and decreasing value residential properties. These indicate the expansion of the neighbourhood. Neighbourhoods experiencing urban decay are more likely to drive down the real estate market. Commercial properties Commercial properties gain value similar to how residential and land properties do. These types of properties include retail buildings, offices, warehouses, and apartment complexes. Earning from Income/Rent Raw Land Raw land properties earn income from companies when there is a discovery of natural resources and minerals on it. These companies would pay a legally-binding payment also known as Royalties for these discoveries. Put simply, Royalties are agreements made with owners that give a third party rights to use their assets. Raw lands can also be rented for agricultural purposes and production. Residential Residential properties earn income from the most common form of rent. Rent is the amount tenants pay consecutively in order to keep living in a property, whether it is an apartment, townhouse, single-family or multi-family home. Inflation and demand are factors that may affect the cost of rent. A rental property that is in a desirable area will increase chances of getting a tenant in your property. Commercial Commercial properties earn profit from basic forms of rent. The good thing about commercial real estate is you can usually receive an annual return between 6% and 12% depending on certain factors such as economic health. Airbnb/Vacation Rentals Properties may also earn income as an Airbnb or Vacation Rentals. These are residential types of properties that are home-away-from-home rentals. Airbnbs are usually preferred by travellers over hotels. Vacation rentals produce good income in areas that are well-known and are considered as tourist spots. Having vacation rentals are banned in some cities so be sure to check out bylaws in your city first. How Can You Maximise Profit from Your Property? Multi-zone Property Commercial properties have more chances of earning profit if it has more uses. To make sure that you are making the most out of your money in commercial properties, make sure to analyse zoning restrictions before purchase. Rental Pick Your Tenants If your property is in high demand for tenants, you may find a number of applications from various people that want to move in. Make sure to do background research or conduct proper screening of tenants to ensure your safety and safety of your home. It would be difficult to earn profit from tenants who are not up to date with payments or who cause damage to your property. Not only will it be a waste of money but time as well. Maintain Rental Property There is a chance that tenants will fail to perform routine maintenance on your property thus creating a bigger problem for you. Keeping your property up to date with maintenance and fixes will make sure your renters do not make any fixes on their own that may not be up to your standard or liking. Minimise Vacancy Anytime your property is vacant, there is no profit from income that is coming in. The best way to avoid vacancy is to find long-term tenants that have good background and pay on time.
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