October 2013 Market Review
As shown in TREB’s latest report, October was another strong – if somewhat frustrating – month in the Toronto real estate market. The key points are that, compared to October 2012, there are fewer homes on the market (-10.5%), they are selling faster (DOM -2.6%), and for more money (+7.4%).
Once again, condos sold very well last month, with the number of sales in the 416 up 20.4% over last year. The average price for a condo in Toronto increased by 7.2%, just a touch under the overall average. (That city-wide average is broken down by type: detached (+12.4); semi-detached (+11.7%); townhouse (+4%) and condo.)
So, that’s the strength part. The frustrating part is the continuing lack of supply: there just aren’t enough houses on the market to satisfy the demand. That is making it hard to buy, which delays selling, which perpetuates the cycle.
Part of the issue is our continuing population growth (currently increasing by about 5%/year). Overall, I’d say that’s a positive thing for the city, even if it puts pressure on the real estate market. Another part is limited space on which to build net new houses. Also, a powerful curb on buying and selling (moving up, downsizing, or relocating to a different part of the city) is the Toronto Land Transfer Tax. Hit the TREB web site for your fill of anti-TLLT info.
All we can do is carry on: shop patiently, and be ready to pounce if you spot something you like. When it comes time to sell (if you have something to sell), do your prep work, price to market, and be as accommodating as you can for showings – the more, the better. It ain’t rocket science, but there certainly is a right way to do it. Cal me any time to talk more about that. 😉