In the video published on July 7th, 2015, Toronto Real Estate Board Senior Manager, Jason Mercer, discusses the real estate sales in the Greater Toronto Area in June. He mentions the substantial (18%) increase in the number of properties sold. While the number of new listings also increased, the rate of increase was considerably lower than that in sales.
Mr. Mercer also mentions the MLS Home Price Index, explaining that, while the growth in average prices is at least in part due to the increase of higher priced houses sold, the Home Price Index compares prices of similar properties in different time periods, thereby providing a more accurate image where it comes to house prices.
During our first sales meeting at Bosley we discussed what type of property might be in high demand this year. It was agreed unanimously that large condos in the central core that can accommodate down-sizing home owners will be very popular.
There was a general concern that empty nesters will be the ones to be hardest hit if the market turns, as their home in many cases is important for their retirement and for the purchase of a condo or townhouse to live. With a favourable market to sell right now, many older couples are considering making the move sooner rather than later, to maximize the investment in their home in case there is a correction to the market.
We know that some of our clients are considering downsizing, and we are planning to host an evening with guest speakers to cover some of the options for empty nesters. Some older buildings fly under the radar, but offer better space, layout and storage with options to renovate. This would be the kind of thing we would present, as well as providing speakers on estate planning, de-cluttering etc. If you think you might be interested in attending such an event, please let us know, and we will keep you posted with a time and location once we have it all organized.
One of the buildings worth recommending is Eglinton Place at 123 Eglinton Avenue East - a high quality Tridel building with suites ranging in size from 600 to over 3000 sf.
The number of new listings is growing, and sales are busy. In the downtown Toronto condo market, sales increased by 30%, and the number of condo units selling above the asking price is up to 17% from the 9% seen at the beginning of January. Downtown freehold listings increased by 67%, but at the same time the sales grew by 95%. 53% of houses sold in this period received more than the listing price. With the interest rates low we expect a very busy year ahead.
In 2013 the predictions of a collapsing real estate market in Toronto failed to come true. And, despite serious listing shortages, especially in freehold houses, 2014 ended with 92,867 residential sales in the Greater Toronto Area, close to the all time record reached in 2007.
The shortage of listings led to bidding wars, particularly in the low rise freehold sector. In the City of Toronto 42.3% houses were sold above the listing price. In the surrounding area, within the GTA limits but outside of the city boundaries, the percentage of houses sold above asking was 16.6%. But condo sales were also strong, with 9.8% units sold above the listing price in the City of Toronto, and 8.7% in the 905 area.
35 houses were sold between 140% and 195% of the listing price in the City of Toronto. The highest percentage - 195% - was paid for a 2-storey detached home requiring renovation, located in Lawrence Park South, which was listed with an asking price of $699,000 and sold for $1,365,888. The dollar amount paid over asking for this property was also the largest in 2014 - $666,888.
The highest percentage above list price for condos in the City was 149% for a condo townhouse, closely followed by 147% for a condo apartment, both in Scarborough. A condo at Yonge and York Mills, sold in July, saw a largest dollar amount over asking - $302,000.
Average property price in the GTA was $566,726 - that represents an 8.4% increase from the 2013 average.
Prospective buyers are having a hard time finding a suitable house, and, unless more listings become available, we expect competing offers and price increases to continue.
In December 2014, in the GTA, Toronto Real Estate Board reported a 9.6% increase in sales, 10.4% decrease in active listings, and 7.0% increase in average price (all in comparison to the same time in 2013). In the City of Toronto the price of detached houses increased by 8.0% to $934,039, semi-detached price dropped by 4.4% to $615,794, and townhouses increased by 5.9% to $474,874. Condo apartment prices also increased by 5.4% to $387,612. The price increases in December were much less severe than what we have experienced a year earlier, when detached homes went up by 18.9%, semi-detached by 15.9% and townhouses by 13.4%.
Despite fewer active listings (by 8.5%) and a drop in new listings (by 5.3%) November MLS sales were still up on a year-over-year basis, by 165 sold listings, or 2.6%. The average time required to sell a listing was down by 7.4%.
Active listings inventory is now lower than in the previous four years. The low inventory, particularly in the low rise sector, resulted in buyers competing for many of newly listed houses. It is still common to set up time to review offers. 20% of freehold listings were sold above asking price in all of the GTA area - 14.2% in the 905 area and 33.8% in the City of Toronto.
Average price for all types of properties in the GTA was $577,936 - that represents an 7.4% increase on a year-over-year basis, and a 1.6% drop from the October level.
Prices for detached houses in the 905 area went up by 10.6% to $672,825, for semi-detached by 7.1% to $449,429, and for townhouses by 8.6% to 410,897. Condominium apartment prices in the 905 area increased by 7.1% to $366,588. All these increases are measured on a year-over-year basis.
Again on a year-over-year basis in the City of Toronto: Sales of detached houses were down marginally by 0.3%, while the average price was $935,122 (an increase of 9.4%); 2.2% fewer semi-detached houses were sold, with average price up by 4.2% to $667,178; townhouse sales increased by 9.3%, and the average price went up by 6.3% to $503,349; and sales of condo apartments were up by 11.2%, while the average price increased by 2% to $394,225.
The highest increase in price in all housing types was for condo apartments in the 905 area: TREB recorded a price increase there of 11.8%, to $310,220.
Listings in the City of Toronto took, on average, 26 days to sell - 2 days less than in November 2013. The average ratio of selling to listing price was 99% in the City and in the GTA. The highest average sale to list price ratio, at 105%, was recorded in E01 TREB district, followed closely by 104% in W02. The shortest average time required to sell a listing, 15 days, was reported for W07 district. The next shortest time, 17 days, was reported for district E01, E02 and E03.
In the 11.5-minute long video released on October 16, Jason Mercer discusses the real estate market in the first three quarters of 2014, updates our outlook for the remainder of 2014 and through 2015. He points to a couple of key factors influencing the market:
Affordability: mortgage costs, property taxes and utilities
Tight supply of listings - if we had more available listings this year would likely post a record in terms of the number of sales
Excellent graphs illustrate the in-depth analysis of the real estate activity as influenced by the economic conditions. Interestingly, the strongest growth in the number of sales was recorded for condominium apartments. As many of the new condo projects reached completion, a good number of units came up for sale, and the buyers seem to have waited for that, ready to purchase.
A slower growth in the number of sales of detached, semi-detached and attached houses is not due to the lack of buyers, but to the shortage of listings.
Mr. Mercer talks about the price growth, which has been steady since 2004, stronger for low rise homes (due to tighter supply), and less so for the condos. He expects a strong level of sales both through the remainder of this year and in 2015. He expects an 8% average price increase in 2014 over the level recorded in 2013, and a more moderate price growth of about 4.5% in 2015.
September was busy in Toronto real estate sales. While active MLS listings were fewer by 5.1% in comparison to last year, we had an increase in the new listings by 5.8%, and 10.9% more sales. The average time required to sell a listing was down by 7.4%.
Active listings inventory remains low - lower than in the previous two years. Home owners are reluctant to list their houses for sale, especially in the City of Toronto, where every move generates additional cost in the form of Toronto Land Transfer Tax.
Average price for all types of properties in the GTA was $573,676 - that represents a 7.7% increase on a year-over-year basis, and a 5% increase from the August level.
Prices for detached houses in the GTA rose by 9.5% to $736,284, for semi-detached by 10.2% to $539,050, and for townhouses by 4.9% to 425,509. Condominium apartment prices increased by 7.1% to $366,588. All these increases are measured on a year-over-year basis.
Again on a year-over-year basis in the City of Toronto: Sales of detached houses increased by 10.6%, while the average price reached $951,792 (a 11.5% increase); 6.1% more semi-detached houses changed owners, with average price up by 12.2% to $689,414; townhouse sales increased by 3.5%, and the average price went up by 4.2% to $476,408; and sales of condo apartments were up substantially, by 15.6%, while the average price increased by 9.2% to $395,505.
Listings in the City of Toronto, as well as in the Greater Toronto Area took, on average, 25 days to sell - 2 days less than in September 2013. The average ratio of selling to listing price was 100% in the City. In the GTA that ratio was 99%. The highest average sale to list price ratio, at 107%, was recorded in E01 TREB district, followed closely by 106% in W01. The shortest average time required to sell a listing, 11 days, was reported for E02 and E06 districts. The next shortest time, 14 days, was reported for district E01 (Riverdale and Leslieville).
Real estate market in Toronto and the Greater Toronto Area remained very active through August. Although the number of available listings was lower by almost 5% in comparison to last year, and 3.1% fewer properties were listed for sale, we had 2.8% more sales, and the average time required to sell a listing was lower by almost 7%.
Active listings inventory remains low - lower than in the previous two years. Toronto land transfer tax seems to be one of the factors. With an additional cost to budget into a move some home owners, who would have in the past considered moving, are instead undertaking renovations.
Average price for all types of properties in the GTA was $546,303 - that represents a 8.9% increase on a year-over-year basis, but in comparison to July the average selling price dropped by 0.8%.
On a year-over-year basis, prices for detached houses in the GTA rose by 10.9% to $704,350, for semi-detached by 9.3% to $502,658, and for townhouses by 9.6% to 421,080. Condominium apartment prices increased by 4.4% to $352,942.
Again on a year-over-year basis in the City of Toronto: Sales of detached houses increased by 1.7%, while the average price reached $902,428 (a 14.7% increase); semi-detached sales were up by 7.4% and average price at $627,725 (8.8% increase); 11.8% more townhouses were sold, with an average price of $463,798 (higher by 11.7%); and sales of condo apartments were up by 6.3%, with the average price of $370,899 (an increase of 4.1%).
Average time required to sell a listing in the Greater Toronto Area was 27 days - 2 days less than in August 2013. In the City of Toronto that time was, interestingly, one day longer, at 28 days. The average ratio of selling to listing price was 99% in the City. In the GTA that ratio was 98%. The highest average sale to list price ratio, at 105%, was recorded in E01 TREB district. The shortest average time required to sell a listing, 16 days, was reported for E02 and E03 districts, followed by 17 days for E06.
Real estate sales were strong in June, with the number of sold houses and condos in the Greater Toronto Area up by 15.4% from the level recorded in June 2013. New listings were up by 8.3%, while active listings were 6.8% lower.
With low inventories and affordability of home ownership due to consistently low interest rates, we expect strong demand to continue through the summer.
Average price for all types of properties in the GTA was $568,953 - that represents a 7.4% increase on a year-over-year basis. In comparison to May results there was a 2.8% drop in average selling price. Semi-detached homes in the GTA experienced the strongest price increase - 9.7% on a year-over-year basis. Condominium apartment prices increased by 6.8%.
Again on a year-over-year basis in the City of Toronto: Sales of detached houses increased by 19.3%, while the average price reached $921,127 (a 6% increase); semi-detached sales were up by 22% and average price at $672,725 (8.8% increase); 14.6% more townhouses were sold, with an average price of $485,273 (higher by 10.9%); and sales of condo apartments were up by 21.4%, with the average price reaching $390,569 (an increase of 6.3%).
Average time required to sell a listing in the Greater Toronto Area was 22 days - 2 days less than in June 2013. In the City of Toronto that time was still one day shorter, at 21 days. The average ratio of selling to listing price was 101% in the City. In the GTA that ratio was 100%. The highest average sale to list price ratio, at 105%, was recorded in W01, E01 and E03 TREB districts.
Houses and condos were selling well in March, despite unpleasant weather. In comparison to March 2013 new listings increased by 1.4%, but at the same time sales went up by 7.2%, which resulted in a 10% lower listing inventory at the end of the month. Average sale price increased by 7.8%, from $517,732 in March 2013 to $557,684.
In the City of Toronto sales of all types of houses increased: 6.5% more detached houses, 1% more semi-detached, 2.7% more townhouses and 6.9% more condos were sold.
Average price of detached homes in the City of Toronto was $898,332 (up 6.8% on a year-over-year basis, but 6% lower than in February), of semi-detached - $658,429$668,298 (up 8.7%, although again 1.5% lower than in February), of townhouses - 483,639 $545,043 (up 7.7%, and again lower by 11.3% than last month), and of condos - $384,865 (up 5.1%, and higher than the February average by 3.3%).
Average time required to sell a detached house in March in the City of Toronto was 16 days (compared to 18 days in February), semi-detached homes required 11 days of market exposure (down from 13), and condos 29 days (down from 34 in February).
Average ratio of selling to listing price in the City if Toronto for detached houses was 101%, for semi-detached was 106%, and for condos 98%.
Economists around the world believe Canadian house prices are too high, and warn that a correction is inevitable. But a Globe and Mail analysis found that the key measure used to come to that conclusion undervalues the rents, and therefore inflate the price-to-rent ratio.
The opinion that Canadian house prices are overvalued was based on the debt-to-income and price-to-rent ratios. These ratios have been averaged, to arrive at a 60 percent above the historical average. But the rental information was based on the CPI data from Statistics Canada. In reality apartment, and particularly condo rents have risen substantially in the recent past. According to CMHC data, the average rent for a 2-bedroom apartment in Toronto in the fall of 2013 was $1,213, and for a 2-bedroom condo was $1,752.
This year, between January 1st and March 15th, in central Toronto districts south of the 401, the average rent paid for an unfurnished 2-bedroom condo with 1 parking spot was $2,116. That amount ranged from $1,100 for a unit in an older building in Flemingdon Park to $3,200 for a brand new 898 sq.ft. at King and John in downtown Toronto.
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