Market Update – March 2015

Market Update for February 2015! 2015 has been a crazy year with bidding wars being the “norm”.  Sale prices for detached, semi-detached and attached/row houses are consistently increasing while new and active listings have decreased. The lack of inventory continues to drive up the average home price in Toronto and doesn’t show any signs of slowing down in the short to mid term. The GTA-wide, market stats are as follows, for February 2015 versus February 2014;

Sales – 11.3% increase
New Listings – 2.8% decrease
Active Listings – 8.7% decrease
Average Price – $596,000
Average Days On Market (DOM) – 7% decrease

For those of you who follow our updates on a monthly basis, you know that our focus is on homes and condos that sell in the downtown core. These numbers are very different from GTA  statistics. If you consider the areas from High Park to The Beach, South of Davenport, the average sale prices and statistics are as follows:

Detached Homes

Average Sale Price – $1,030,000
Sale-to-List Ratio – 102%

Semi-Detached Homes

Average Sale Price – $793,000
Sale-to-List Ratio – 105%
Attached/Row Houses

Average Sale Price – $739,000
Sale-to-List Ratio – 104%

Condo Townhouses

Average Sale Price – $514,000
Sale-to-List Ratio – 100%

Condos

Average Sale Price – $438,000
Sale-to-List Ratio – 99%

What does all this mean? Continued bidding wars as sales outpace the number of new listings coming to market. The condo sector is showing signs of a soft-landing as buyers, frustrated with a general lack of inventory in the low-rise sector, spill back over into the high-rise sector (i.e. condos). A general unwillingness to deal with increased commuting times are assisting in maintaining strength in the high-rise sector. Let’s not assume that these statistics mean that there aren’t overvalued homes and condos on the market. Don’t get caught up in the hype and ensure your due diligence is completed before offering. Real estate has been a superb vehicle to increase net worth over time. Quick flips can still be profitable, but be careful of what you’re buying.

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