April 2015 Market Review
The Toronto Real Estate Board has reported 11,303 sales for April, 2015 – the most ever for the month of April. It’s an increase of 17% over the 9,660 sales in April 2014. The number of new listings increased by only 5%. The fast pace of sales amid fewer new listings resulted in a decline in the number of active (available listings) of 10.1%, to just 17,182 (from 19,118 last April). That pressure on supply led to an average sale price increase of 10% year-over-year, to $635,932.
I think it’s worth noting that the average sale price includes all the high-end, detached houses, and some parts of the 905. Averages can be skewed – even by a handful of outliers. To give some perspective, here’s how the average sale prices break down by type in the 416 (City of Toronto):
Fully detached $1,056,114 (+9.2%)
Semi-detached $727,875 (+3.5%)
Town (row) house $551,231 (+10.3%)
Condo $407,612 (+5.8%)
Price increases in the 905 were higher, on a percentage basis, in all but the townhouse category, and that would have drawn up the percentage increase, too. Obviously, the average doesn’t tell the whole story. I hope that the above numbers look a little less intimidating!
I’ve been mentioning the condo segment for some time now. That 5.8% increase is healthy, and easily sustainable in a low interest rate, low inflation environment. Condos are a good buy.
The Toronto real estate market is strong, and will remain strong through the year. As I always say: anything can happen (even an NDP government in Alberta!), but there’s nothing on the horizon to imply trouble for the market. The main pressure in recent years has been coming from buyers, and that’s not about to change. That means it’s a great time to sell (downsize, divest, relocate out of town). If you are planning to sell, call me and let’s get to work.