Toronto’s real estate market remains hot. TREB reported 8,014 residential sales in February 2017. Even though 2016 was a leap year, February 2017 still managed to top its number of sales by 5.7 per cent.
Everybody wants to own a house and the high demand, strong price growth and the increasing number of sales we’re experiencing is a good enough proof. A recent customer survey undertaken for TREB by Ipsos found that there are just as many first-time buyers as existing homeowners interested in buying a property in 2017. And they’re not just interested in houses.
In the City of Toronto, 14 per cent more condos were sold than this time last year, while the number of sold detached properties dropped by 6.8 per cent. The average price of a condo in the 416 area has increased by 18.2 per cent, amounting to $515,424.
As for houses, the average price of a detached property in the City of Toronto has experienced an increase of almost 30 per cent of last year’s price crossing the $1,5M mark. According to TREB’s report, you’d need $1,573,622 on average to buy detached property in the 416 area.
The demand for home ownership grew over the course of 2016, but the inventory remains low with new listings in February 2017 down by 12.5 per cent, and active listings amounting to less than a half of what was available in February 2016.
February was fast and furious with no sign of stopping. However, this is not a lot of fun for us REALTORS. Remember that if there are 28 offers on a property, there are 27 clients and their agents that spent the evening trying to secure their next home.
It is also important to remember, that if you are selling to buy, the difference between what you sell for and what you buy for is often static whether the market goes up or down. There are also opportunities if you scour the market for overpriced houses that have not sold, and make offers at market value; no matter the asking price.
In this market, it is not possible to underprice a house but some sellers look at a neighbours sale price and overshoot the market. If the property works for you, it may be time to jump into the water.
TREB’s heading for February “Sales up and Listings down”, says it all! February felt like the Wild West. I saw 28 offers on one condo, and nearly all newly listed condos have an offer date.
There is such a lack of housing stock that first-time buyers and investors are having to look to condos. We are hearing more buyers say that they have sold stock to put their money in bricks and mortar as it is a better investment.
So many factors are fueling this Sellers’ market and we are urging clients to jump in as we don’t see a change for some time.
February saw a continuation of January, where sellers saw multiple offers but buyers meet with more frustration and a constant race against the clock. Properties that would typically take 7-10 days to sell are selling within hours.
This lack of supply is definitely intensifying the stronghold that sellers have on this Seller’s market. However, it is also putting some sellers off from listing their homes because they are starting to fear about what they will buy.
Timing is key if you wish to succeed in this market and we have successfully helped many buyers and sellers this past month who couldn’t be happier with the results.
If you want to get a toehold in this market for any type of housing stock, you need to get out “in front of it” and not be perpetually “chasing it”. By that I mean, as a buyer you need to be ready to step up with a healthy premium pre-emptive offer above the asking price on a property.
The “asking” price bears no real barometer of the current market value as that is established by “what a willing buyer and a willing seller agree upon”, and this in almost every sale we are seeing is above and beyond the “asking price”. Guess what? If you do not make the “winning bid”, the new current market value is established with the higher offer that was accepted on the property and you end up “chasing” the market.
As for selling into this current marketplace, there has never been higher demand from buyers and this level of diminished inventory means that this is the BEST time we have ever seen to be a Seller!
We have been experiencing a shortage of inventory in Toronto for years now. However, the condo market was beyond the word “HOT” in February. We were not only facing numerous offers on the set offer date but also multiple offers with pre-emptive offers only a few hours after listing was submitted to MLS.
Every sold price was a record breaking price in the building. The results shocked both sellers and their agents. I guess anyone who decided to invest in a condo a few years ago is now celebrating.