It’s déjà vu all over again as we begin the year with Toronto’s real estate prices raging hot. Amidst a backdrop of fewer listings (according to Toronto Real Estate Board Market Watch January 2022 report, GTA saw the lowest level of listings in more than 2 decades), prices shot up 24% compared to January 2021.
February is a month of forecasts as Wiarton Willy already predicted an early spring for Ontarians on Groundhog Day. Every February, the real estate board also provides a recap of the previous year along with market research analysis and the outlook for the upcoming year. (Let me know if you’d like me to send you the full report.)
For 2022, the board is forecasting strong price growth of 12% that translates into an average price of $1,225,000 in 2022 due to tight supply and strong demand.
Unlike the groundhog-derived forecast that has only a single variable, ie, its shadow, the board takes into consideration many factors such as buyer and seller intentions, new construction starts and deliveries, affordability, immigration levels, interest rates etc. For anyone keeping track, the real estate board has met its price forecast in the past 3 years.
If January is a harbinger for the rest of the year, buckle up because the prices are going to be eye popping.
Shen Shoots the Breeze
After living in our home for more than 15 years and undergoing several interior renovations, we started tackling exterior updates in December. We began by replacing our windows (original circa 1960s), adding 4 skylights and will give a facelift to the front of our house.
We are waiting for the spring thaw and will use Hardieboard siding and replace eavestroughs and soffits to finish the makeover.
For those of you contemplating window and skylight renovations, here are some things to be aware of:
- If you are doing brick-to-brick window installation, ensure that the trim work matches the existing trim work in your home already. Most window installers will include this in their quote and should ask you what style of trim you want.
- You will need to hire someone to patch inevitable drywall (which is normal) as existing windows are removed.
- This same person will also paint the trim as well as the walls. This would be good reminder to keep a reference of the paint colours in your home and the type of paint and sheen level. No one wants to be guessing the paint code ten 10 years on. In addition, depending on when you painted, how saturated the colour is, it may not match exactly as paint oxidizes over time. We only painted the wall where the window was installed and left the other walls intact.
- If you have blinds that were installed into the window sill, there’s a chance you may need to replace them – so delay purchasing blinds if you know you plan to replace the windows in the short term.
- If you’re installing skylights, chances are that the skylight installer is different than the trades you will hire to open the ceilings to bring the light in – that person is likely a carpenter or professional drywaller. Free tip from us – it only cost us $3,500 to install 4 skylgihts but we anticipate it will be over $10,000 to expose the skylights.
It’s normal to feel uneasy as you contemplate doing renovations; if you have time on your hands and don’t’ need to rush them through, things will way less stressful. We’d love to hear your experience with your renos.