Etobicoke Real Estate

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About the Toronto Real Estate Market

We are getting the same questions from people asking about the real estate market it seems these days.  They ask, “How are you finding the market?, Down eh?”.  Seems like people are reading and listening to media reports that are basing their content and commentary on year to year statistics. This doesn’t realistically reflect how the ‘market’ is performing today.

Last year at this time, we were experiencing a cool down after a very odd, even extraordinary bubble. Some would say there was a frenzy of emotionally charged buying from December 2016 to March 2017.  The cool down started before April 20th, when the Province announced the ‘Fair Housing Plan’. Comparing sales and prices now (latest stats are from March’18) to that period doesn’t stand to good logic, yet the media is making statements, which are true, but add comments that ‘the market isn’t doing well’. This is confusing people. Price and volume is down from that weird period but that doesn’t reflect today’s market.

What we are experiencing with our clients……is lots of purchasers searching for good value in the market.  When a good property that is prepared well for showing comes on the market, it sells quickly and often times there are competitive bidding offers.  We have to be agile in our approach to getting our clients what they are looking for and getting a deal done. There isn’t a lot of inventory (listings) so when a new listing shows up, it gets a lot of attention. The most concentrated group of buyers seems to be in the $600,000 to $1,200,000 buying range. 

Regarding the luxury market and homes above $1,500,000, our view is, it’s somewhat steady. The number of buyers of luxury homes is not as robust as the other group. Supply and demand dictate how long a property stays on the market. 

In general terms, if you look at the price increase from 2015/16, there has been a reasonable increase.  The oddity is that bubble from Jan’17-Apr’17.

This graph illustrates the story simply:

So….prices are going up.  Sales volume is down from an extraordinary period of time (the build up from 2015/16 to the bubble in 2017).  That period happened because of low interest rates, a steady economy and a sense that large profit was available in flipping houses. At the moment, volume of sales is reasonable and growing we think.  Interest rates, the stress test, competitive bidding on attractive property is keeping the market mindful of value and fortunately it doesn’t have that emotional element.  

It’s currently a balanced market on the edge of a seller’s market.  Prices will continue to go up this year.  Good property is selling quickly and with competition.

Here is the data from TREB for Toronto:

Month

Sales

Ave. Price

New Listings

Active Listings

Ave DOM

Jan '15

1,544

$583,084 

3,901

5,056

32

Feb '15

2,352

$630,855 

4,187

5,506

24

Mar '15

3,177

$656,043 

6,092

6,593

21

Apr '15

4,057

$690,658 

7,144

7,466

19

May '15

4,166

$717,789 

7,252

8,046

19

Jun '15

4,377

$682,489 

7,136

7,955

20

Jul '15

3,459

$617,540 

5,660

7,335

24

Aug '15

2,793

$606,706 

4,861

6,947

26

Sep '15

3,123

$674,934 

6,789

7,873

23

Oct '15

3,415

$671,046 

5,566

7,333

23

Nov '15

2,843

$653,741 

4,104

6,288

27

Dec '15

1,992

$627,032 

2,016

4,325

31

Jan '16

1,684

$635,702 

3,737

4,703

33

Feb '16

2,794

$720,633 

4,457

5,070

24

Mar '16

3,607

$699,513 

5,503

5,479

20

Apr '16

4,225

$766,838 

6,131

5,677

18

May '16

4,612

$782,551 

6,745

5,936

17

Jun '16

4,560

$775,885 

6,259

5,552

17

Jul '16

3,485

$690,597 

4,859

4,930

19

Aug '16

3,402

$677,564 

4,457

4,281

21

Sep '16

3,570

$766,559 

5,684

4,780

18

Oct '16

3,703

$769,712 

5,097

4,438

17

Nov '16

3,353

$790,580 

4,048

3,558

18

Dec '16

2,095

$710,724 

1,661

2,012

21

Jan '17

1,889

$726,901 

2,879

2,230

20

Feb '17

2,889

$859,210 

3,576

2,298

15

Mar '17

4,224

$897,856 

5,715

2,809

11

Apr '17

4,124

$942,677 

6,990

4,218

10

May '17

3,886

$899,980 

8,433

5,829

11

Jun '17

3,117

$827,802 

6,282

6,000

15

Jul '17

2,286

$759,423 

4,482

5,700

20

Aug '17

2,464

$724,518 

3,592

4,743

23

Sep '17

2,495

$809,095 

5,525

5,732

21

Oct '17

2,863

$819,124 

5,035

5,681

20

Nov '17

2,960

$803,540 

4,865

5,430

21

Dec '17

1,954

$741,529 

2,134

3,736

24

Jan '18

1,512

$767,204 

2,772

3,460

28

Feb '18

2,011

$806,379 

3,370

3,812

22

Mar '18

2,797

$817,642 

4,438

4,104

17

 

 

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