Toronto Real Estate Market is NOT Crashing.
It’s impossible to watch the news without a doom and gloom Toronto Real Estate story. “The Bubble is Bursting” “Oh no, the market’s crashing” etc… You know what? Certain properties in Toronto aren’t selling well but most houses in desirable neighbourhoods are going bananas. If you own a house in Leslieville, Riverside, Riverdale, Junction, Roncesvalles, High Park, Parkdale, King East/West, Queen East/West you will most likely achieve a top selling price. Of course if the home has been neglected for the past two decades you may have a harder time finding a buyer but generally speaking, houses are moving, and they’re moving fast.
December is always a tough month to analyze but that’s the only data we have right now until the end of January. We’ll update you with January figures when we have them. If we’re talking houses (both semi & detached) average sale price in these neighbourhoods is up nearly 9% overall (up to 16% in some more specific streets) from 2011. The problem we’re having now is that inventory is down across the board nearly 20%. We have the same amount of buyers (feds didn’t change lending rates) perhaps more, with less product to choose from. Simple economics comes into play. Demand > Supply = Multiple Bids & High Prices & Less Days on Market.
Another sector that mainstream media would have you believe is crashing is the Toronto Condo Market. Sure, houses are destroying condos if you look at the numbers but Sellers aren’t just giving their condos away. Q4 of 2012 was not kind to condos but for the first time in months we’re actually seeing multiple offers on a select set of condos and lofts. Let’s make one thing clear, the condo market isn’t really in favour of either the Seller or Buyer, it’s more balanced with the odd (usually hard loft or unique space) attracting multiples and setting price records. And that’s the big difference between houses and condos right now. Mostly any house that is move in ready (updated or not) in a hot neighbourhood is selling quickly while you need to have something quite special to achieve the same results in the condo market.
There’s just too much data to report in one post so we’re going to wait until the January figures are reported and we’ll get back to you with some detailed data. In the mean time if you’ve been on the fence about selling or buying give us a shout and we’ll give you the exact 411 on your specific situation. Not ready to do either yet? Connect with us on Facebook or Twitter and we’ll keep you in the loop. If you’re a 1st time buyer make sure you check out the Worlds Greatest First Time Buyers’ Guide!