Posts tagged " Average condo price "

December 2015 Market Review

January 6th, 2016 Posted by Market Review No Comment yet

A strong December sales pace capped a record-setting sales year in the Toronto real estate market. With 4,945 sales reported to TREB last month (up 11.9% over the 4,418 reported for December 2014), the total for the year hit 101,299 – 9.2% more than 2014, and breaking the 100,000 mark for the first time.

New listings for the month actually increased to 4,783, up 8.4% over 4,413 in December 2014. However, total available listings declined. Continued low supply meant continued competition among buyers, which again pushed prices up. The average sale was $609,110, up 9.5% over December 2014, and pushed the average price for the whole year to 622,217, up 9.8% over the 2014 year-long average. (TREB’s HPI increased by 10% year-over-year, which would generally indicate strong demand for all housing types.)

Condo sales in the 416 also showed strength, increasing 12.5% over December 2014. Perhaps due to better supply (compared to low-rise housing), perhaps simply due to the distribution of sales, average price increased only 3.2%, keeping condo pricing ($400,088 in the 416 and just $325,036 in the 905) well within range for first-timers.

January is just getting started, but based on my client list and conversations with other agents it sounds like we are in for another busy year. The ongoing shortage of new listings has created a near-constant state of pent-up demand – i.e. there are buyers out there, and they are looking to buy ASAP. That means we’ll see competition among serious buyers and upward pressure on prices through 2016.

Plus, interest rates are low and may even go lower this year, as the BoC tries to stimulate the economy, so buying power will remain at historic highs. That provides some relief to buyers trying to keep up with the price increases, but it won’t last forever… we think! It’ll last a couple more years, though, so that will continue to be a feature of the real estate landscape for the foreseeable future.

One last thing: mortgage approvals. The rules on that are tightening up again. If you are a buyer (or need to renew an existing mortgage) make sure that you have a fulsome conversation with your mortgage professional BEFORE you go out shopping for a house. Nobody needs a nasty pre-approval fail to ruin their purchase plans. 🙂

May 2014 Market Review

June 24th, 2014 Posted by Market Review No Comment yet

May tends to be one of (if not the) busiest months of the real estate year. So, it’s no surprise that TREB reported May 2014 sales volume up 11.4% over May 2013, to 11,079 transactions – a new record for that month.  Intense activity – and on-going competition (‘bidding wars’) – drove up the average price by 8.3%, to $585,204.

In a continuation of the issue that has plagued the Toronto real estate market since the recession, the number of listings declined year-over-year. New listings were down just 0.8%, to 18,931, but overall, total active listings declined by 8.8%, to 20,679 (all houses, condos, etc. in Toronto and the surrounding area). Strong demand in the face of tight supply is what has been driving prices up in Toronto – not speculation, not a ‘bubble’, just plain old supply-and-demand. And, for better or worse, there’s no obvious relief on the horizon. As I have been saying for years, this market is most likely to continue trending upwards for some time to come.

I think it’s worth mentioning that condo sales again increased (5.4% in the 416, 16.1% in the 905), as did prices (7.6% in the 416, to $401,809; and 4.8%, to $307,307 in the 905). That market remains a great outlet for buyers unable to crack the low-rise housing segment. Condos offer a great lifestyle, as well as a chance to build equity and take part in the capital appreciation offered by the investment. Although it likely costs more than renting (on a monthly basis) in the short term, it’s a great foot in the door to the real estate market.

June typically spells the end of the ‘spring market’. However, as I pointed out last month, we seem to have gotten off to a late start this year. After a brief lull for the Canada Day long weekend (it’s not *officially* a long weekend, but loads of people will make it one), the market will carry on through July, albeit perhaps somewhat less frantically. For my part, I have a few buyers who are hoping to make a purchase over the summer, and I hear that there are quite a few listings in the pipeline, so that should make for a good combination. The bottom line is that there will be continuing strong ‘spring market’ activity for the next month or so.