It was a bumpy year for Toronto real estate market. The market shot up, it slowed down and has picked back up again. The shortage of listings slowly and finally started to correct itself. Now, November TREB stats release started a craze regarding prices in the GTA. Over the last two years, the strong market was driving prices upwards, so even the smallest drop, like the 2 per cent we are experiencing now, gave a lot of writing material to real estate blogs around the web. Are the prices really dropping?
Divided into home types, the only segment where the average price dropped were detached homes. The priced dropped by 5.8 per cent, marking the average price for a house $996,527. Both Semis and Townhouses were up by 1.2 and 4.8 per cent respectively. Condominium apartments are still the ones shooting for the stars with a 16.4 per cent increase. The average price for a condo in GTA is now at $516,965. Just for comparison, it was $443,586 in November 2016 and $442,598 in January 2017. The recent spike in condo market might be driven by the fact that most buyers are deciding to wait for the prices on detached homes to drop and are moving to more affordable condos instead. Now is the perfect time for new buyers to enter the market before new mortgage rules take hold on January 1st.
Other than this not that significant drop in price, the market was strong in November, with 7,374 sales recorded trough TREB’s MLS® System. That’s only 13.3 per cent lower than in November 2016. There were 110.6 per cent more active listings than the year before and 37.2 per cent new listings. The properties took 24 days to sell on average. Comparing to 17 days last year in November, this 41.2 per cent change perhaps allowed the buyer to negotiate the price to his liking.
Richard Silver, Sales Representative, SVP-Sales
One year ago we were heading into one of the craziest markets we have ever seen in the GTA. It was a 5-month price blip and should not be downplayed, however, year to year activity is down 13 percent, with listings up 37 percent. The blip was mostly caused by that shortage of listings and all being said we are only off 2 percent in pricing since November 2016.
The sky has not fallen and though the Seller still has the upper hand in prime property, the Buyer can breathe and make the right decision and negotiate.
Over the past years, we have had a number of newbies in the Real Estate business who may not understand a changing market and how to negotiate because they have never had to…this is a time to get seasoned, expert help to work on your behalf whether selling or buying.
Sherille Layton, Sales Representative
Drawing towards the end of the year is always a good time to reflect. This year has been somewhat of a rollercoaster ride at times. There is still consumer confidence and seasoned Realtors are still busy and placing their clients in new homes.
There is definitely a widening difference between residential houses and condos. Even though there are few houses on the market buyers are still not willing to over pay and often these properties are taking longer to sell. Not the case with condos, many between the $400,000 to $700,000 are selling fast and over asking.
Rizwan Malik, Sales Representative, B.Comm
What a year!! The market shot up, it slowed down and has picked back up again. The one thing all of this has shown us is the true demand for real estate in our vibrant city. All of our clients have turned to us this year looking for sound advice, advice that will help them navigate this market. Through all the ups and downs, we have been able to place clients in wonderful homes and help our sellers establish some new records.
The new year begins with new lending policies and we will see what the outcome will be but one thing is for certain, we will be here to guide and lead all of our valuable clients in making the right move.
Jim Burtnick, Broker, SVP-Sales
11 of 12 months of 2017 are now in the books and what a wild ride it has been. What started as a frenzied and irrational market then went into a pause mode. From there we have seen a divergent market depending on: where in the GTA you are looking to buy or sell (i.e. neighbourhood specific) and the type of housing (condo, detached house, semi-detached or townhouse). Some are up (condos in the downtown core especially), some are down (the 905 belt and detached specifically).
Lots of moving part and information to sift through – that is why we are here to help you filter, process and navigate this broad and fluctuating marketplace in order to do the right deal for you specifically. No two clients are the same and neither is the current real estate residential real estate marketplace.
Tracy An, Sales Representative, SRS, CNE
There are always opportunities regardless of the state of the market. Especially now, when we have 18,197 active listings on the market, 110 per cent more than same time period last year. The holiday season will be a great time for buyers who still want to get in the marketplace before B20 (stress test) takes place.