General Toronto Real Estate Market Analysis, November 5, 2019:
Reviewing the sale information from TREB’s MLS? in the past month shows 8,491 residential sales, which compared to the same time last year shows a whopping 14% increase in the number of sales from 7,448 in October 2018. Looking at the average price of the units sold shows 5.5% increase Year over Year. Average price of the homes in the past month has been $852,142 in GTA and the average price of a home in the City of Toronto ( 416 area code) has been $925,498 which had an increase of 6.3% Year over Year. "The benchmark price, which accounts for differences in the type of homes sold, rose 5.8 per cent from a year ago to $810,900, the Toronto Real Estate Board said in a report Tuesday. That’s the biggest jump since December 2017 and takes it to within about $4,300 of the record set in mid-2017." If we look at the average days on the market and the number of active listings we’ll notice the tighter inventory level compared to last year. Average DOM had a decrease of 4.2% from last year, same time, and the number of active listings has dropped to 15,375 units from 18,926, which is a drastic 18.8% decrease. This decrease of the inventory puts even more pressure on the standing inventory. Last month, Bank of Canada decided to keep the overnight rate on 1.75% which is an indicator of steady mortgage and borrowing market It keeps the home buyers in the market. Then those buyers who have been sitting on the fences will get back to the market, and so the market is looking to be tighter in the next few months.
Condo apartment sales in the past month have been 2,219 in the whole Greater Toronto Area, which Toronto ( 416 area ) 1,575 sales, which is 4.4% increase in the number of units sold since last year. The average price of a condo apartment have been $617,419 and $662,631 in GTA and Toronto respectively. The appreciation in condo apartments prices since last year have been 9.6% in both GTA and Toronto! Downtown Toronto C01 condo apartments had an average price of $772,158 which had an increase of 8.5% Year over Year! However the Month of Inventory were 1.3 MOI, the LOWEST level since April 2018!
Average price of a detached house in GTA has been $1,049,300 and in Toronto it has been $1,323,015 with average price appreciation of respectively 3% and 1.1%. As you can see the gap between the Condo apartments and Detached houses are getting less gradually!
Semi-detached and Townhouses:
Those properties have been in demand in recent years. The reason being they are great options for up sizers or people who are climbing the property ladder gradually, young families and even investors! The average price of a Townhouse in Toronto has been $795,115 and average price of a semi-detached house has been $1,099,802! So respective appreciations of 3.5% and 7.1%!
Comments and forecasts for sellers, November 2019:
If you are a seller looking to sell a property, study the micro market you are located in, as different markets have different behaviour, however this analysis is a complete general market update for the city of Toronto resale residential homes, but you still need to look at the stats in your own micro pocket. So in general, as a seller, in most parts of Toronto, you have the upper hand. Because the current inventory trend since August 2019 indicated a tighter inventory in the next few months. So if you need to sell and cash out, the next few months could be good months to market your property. ( depending on your specific micro market and asset type though)
Comments and forecasts for buyers, November 2019:
If you are a buyer, your position is a bit different now. Reviewing the inventory level in the past few months shows you might face tighter inventory and more competition in the market. In addition to that, steady mortgage rates, and in some cases, even cheaper mortgage rates in Insured mortgages ( for first time buyers with less than 20% down payment) could add to the current demand. So higher demand and less inventory, can cause in more multiple offer situations and more pressure. Then have your winning strategy in place. Know your target market. Be prepared for multiple offers proactively, such as having your pre-approvals ready, if you are looking for condos, have a solicitor ready to inspect status certificates for you before preparing an offer. If you are looking at houses, have an inspector next to you. Numbers sourced from TREB - http://www.trebhome.com/files/market-stats/market-watch/mw1910.pdf Above "" From Financial Post - https://business.financialpost.com/real-estate/toronto-home-prices-jump-the-most-since-2017?fbclid=IwAR3YzutUl29Hj5Lr-_AADpL6Bi8xTlR3Rzz02ox7Tgw_m6E2GdL0POnmHP8