January 2016 Market Review
January got 2016 off to a quick start. In its monthly Market Watch, TREB has reported 4,672 sales for the month, up 8.2% over January 2015. At a time of constrained supply – both generally, over the last few years, and seasonally – prices shot up 14.1% year-over-year, to $631,092. That was apparently due, at least in part, to more sales of pricier houses outside the GTA. By comparison, TREB’s HPI, which tries to smooth out the average by accounting for type of houses sold, was up a more modest – but still significant – 11.2%.
To illustrate the point about supply, there were just 9,966 active listings last month, compared to 11,600 in Jan.15. That’s a drop of 14.1%. Ten years ago, in January 2006, there were 18,073 active listings (a 3% increase from January 2005), and 4,587 sales (a 10% year-over-year increase). That’s almost double the current supply, and there were fewer sales! It’s no wonder that buyers today are feeling the pressure….
In the condo segment, sales volume in the 416 increased 11.6% over Jan.15 and prices jumped an interesting 8.6%. I say that because we’ve seen decent sales volume in condos over the last year or so, but usually not the same kind of price increases that houses have shown. It will be interesting to see if this keeps up….
In general, I think that the ‘spring market’ will get going sooner rather than later. If you are a buyer, keep your eyes peeled and when we spot something, be ready to pounce! If you are planning to sell in the first half of this year, you should get to work on/around the house ASAP; it’s better to be ready early!
By the way, my Exclusive listing at 58 Brookmount Rd will hit the MLS on Feb 16th. Call me if you would like to see it before then.