March 2014 Market Review
Sales volume in March, 2014 picked up by 7.2% over March 2013, with 8,081 sales reported by TREB. For Q1/2014, sales were up by three per cent compared to the first three months of 2013. Considering the brutal weather we’ve had so far this year, those are impressive numbers. Expect activity to pick up even more in Q2.
Prices surged by 7.8% for the month, with the average sale in Toronto hitting $557,684. For the quarter, the average sale price was up slightly more, by 8.5%. In the current interest rate environment, housing in Toronto continues to be affordable, but I’m mindful of the potential risk to buyers at the periphery. As I have written before, I don’t like to see increases much above 5-7% (although we are not much above that now), simply because I’m keen to see continued, long-term sustainability. It bears watching. Fortunately, I think that we are already seeing a slight moderating of sale prices, as more supply comes online.
Keep in mind that it’s not impossible to make a purchase for below (even well below) that average price, if one just heads a bit outside the core. There are plenty of great neighbourhoods all around the city. Also, that average price is pulled up by bigger houses and high-end sales. So, don’t worry about it! You may have to make concessions, but that’s actually quite normal.
If you are transitioning from a condo, it’s worth noting that sales volume was up 6.9%, and average price increased 5.1%. That market has always been more stable than reported by the media (not to mention the feds…), but now the direction is pretty clear.
Spring is always an exciting time in real estate, and this year will be busy and fun. If you are a seller, let’s get your house on the market before mid-June, and if you are a buyer, now’s the time to get out and enjoy the broader selection!