It’s always amusing to see what kind of images you can find on a Google Search engine that will provide a little tongue-in-cheek humour to one’s real estate blog. In today’s post, I’m not here to rank which celebrity is ‘Hot or Not’ but illustrate how important, amongst the myriad of factors which influence the demand for property, where it’s located impacts its ability to sell regardless of the broad market conditions. Is your neighbourhood ‘Hot or Not’?
First, there are countless reasons which influence how quickly a property might sell. Along with the dwelling type, size, condition, and other factors like the number of rooms, the availability of parking, satisfactory outdoor space, and any mitigating factors like noise, privacy, pollution, and accessibility, the value of a property remains very much a function of how many buyers are seeking a dwelling in your price parameters and location at any given time.
In other words, the supply and demand of each real estate micromarket dictates how much any particular property is worth. So when you find yourself reading articles that discuss whether the Canadian real estate market is in a bubble or not, remember that the indicators the authors may be using to gauge the market’s momentum are often broad sweeping statistics that may not truly reflecting what’s happening in the specific neighourhood of interest to you.
An article in the Toronto Star today has some merit, in that it presents how Hot or Not different neighbourhoods are by comparing each zone’s average number of listings to each district’s average selling time in order to establish how long it would take for all the property to be sold off. The result? Toronto Real Estate Board analysts demonstrate that geography, price and demand all have bearing on how ‘Hot’ (or warm, or cold) any MLS district is. At the same time take note: each MLS district used in the analysis for this article is still a fairly large geographic boundary that may contain pockets of highly coveted property, as well as areas which are less desirable. You simply should not rely on this information to make a final decision on where to buy property.
Click on the Toronto Star Logo below to see this article. It’s an interesting point of view.
Do you have questions? Please know urbaneer.com is here to assist you with your real estate needs.
~ Steven
Real Estate
