Greetings Real Estate Enthusiasts!
Another month of data in the books and again, no real surprises but some interesting figures nonetheless.
I’ve been screaming “buy east buy east buy east” from the rooftops for nearly a decade.
Not that the rest of the City isn’t performing well…it is. The real estate market in any of our urban communities has performed well over the long term. But the East has made some serious moves since 2013/14.
But it’s finally the East’s time to shine. Those that followed, invested, bought and made a home here in East Toronto are reaping the rewards. Even those that have recently invested are seeing positive short term gains (those aren’t sustainable so don’t get all excited). Real Estate is and has always been a buy and hold play.
You’ll see a lot of arrows pointing down in the image below. Does that mean that an urban home that was bought last May is worth less now?
There have been a lot of lower valued homes that have sold which has pulled the urban average down. Especially in the detached department. This happens when communities change. Original home owners are realizing what builders will pay for their lots, and they’re selling.
That’s what’s generally bringing the average down. A property purchased in most of our urban communities last year, is worth more this year.
This is the first time in a little while I’ve seen total sales volume up across the board.
East and West posted double digit gains in total sales volume. What’s even more surprising is that sales volume isn’t just up because of high prices…that’s only part of it.
For the first time in a long while the actual number of properties that sold jumped by nearly 17%. Sales have been flat and in most cases down. That’s the Spring Market for you!
Even though there were 8% more new listings, the number of available properties dropped nearly 1%.
There were enough buyers to absorb the increase in inventory. The demand was so high that in most cases prices still managed to increase in some property types (mainly condos and townhouses).
That all speaks to an incredibly strong market with massive demand from locals and newcomers alike.
Long story short: if you’re a buyer, expect to be competing with other buyers for the same home and if you’re a seller, expect to get a lot of attention.
Remember when we were all talking about “Detached Homes hitting a million”? way back in 2014? Well we’re up nearly 50%++ from that time just 5 short years later so don’t let those “down arrows” in the West and Central regions get you all like “oh it’s finally happening, Garth Turner was right!!”
The fact is, any detached home in Toronto that’s renovated and liveable is going to cost you a minimum of $1.5mm
…if you insist on detached there are some opportunities that are more affordable in some pockets of East York (think Danforth and Woodbine or between Donlands and Coxwell. If you can stomach being a little further east then you MUST consider the Birchcliff and Cliffside communities up towards and beyond Warden along Kingston Rd.
You’ll notice that I’ve been talking quite a bit about these east end communities if you follow me on instagram (stories is where I’m most active)
Semi Detached Homes
The average urban semi in Central Toronto (downtown areas) is generally more expensive than a detached home in the East or West. So needless to say, our urban centre is doing perfectly fine….from a Seller’s perspective anyway.
The East leads the pack with another double digit gain which is no surprise since we’re seeing an insane amount of interest in any listing we put up. I just sold this one on Gainsborough for $895K (listed at $789K) with many Buyers chomping at the bit to get in at under a million in a great community.
The most intense market right now is the $800k-$1mm market. We’ve had anywhere from 5-15 buyers come to the table offering on those gems. It’s only a matter of time before the entry level house hits a million as a minimum.
The Opportunity currently lies just East of Coxwell and North to where Gerrard east turns into Eastwood. Still some great options there well under a million.
Again no surprises here with this product type. Townhouses have been the more affordable alternative to houses. The more expensive houses get the more people we’ll have forced into the townhouse market.
The East and West have MASSIVE demand for townhouses. But let’s talk Central for a second. You see a huge double digit loss there. When I see a 32% drop in price year over year I worry! But then I dug into the numbers and noticed that there were some lower value sales that dragged that value down this month. Same with detached properties as I mentioned in the opening paragraphs.
Again the major opportunities for Townhouses lie along Kingston Rd from just west of Main St all the way up to the merge of Kingston Rd and Danforth. We just helped 7 lucky buyers purchase at the new Merge Condos development at about 60% cheaper than more urban alternatives.
We have access to dozens of townhouse opportunities along this stretch of Kingston Rd. All 40-60% less expensive than more urban options but same (sometimes better) designs and with great access to transit. Reach out if you’d like to learn more. I’m not allowed to post anything publicly about them yet.
The darling of the Toronto Real Estate Market. The same building could house a near billionaire real estate tycoon or a first time buyer taking advantage of one of our amazing buyer assistance programs.
Our market smashed the $1000/PSF barrier and kept going. There won’t be a new urban condo launched at under under 5 figures per square foot ever again.
That’s why I’m so focussed on directing every single buyer I meet to Kingston Rd from the Beaches right up to Scarborough. These condos are all incredibly high quality and fetching well under $800 per square foot and sometimes under $700/PSF. Expect to see some major gains in these East End areas over the next few years.
As long as we have a record number of jobs being created here, a record number of new Canadians (did you know that 40% of new immigrants buy real estate within one year of arriving?) and a strong pool of local buyers this will not change. But don’t get me wrong…it’s impossible for this to continue this way. The market will soften eventually. I just don’t know when.
That’s all I have for you today. Take a look at the infographic below or download the pdf version and put it on your fridge
If you’d like a deeper dive into the market for your specific street or property type please reach out and I’ll customize one for you.
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