“Hey Ara – it’s December, why are we talking about November numbers?” is a question I get asked often after releasing my market reports.
The simple answer is that by the time all the previous month’s data is collected and organized we’re into the first week of December. Then I’ve got to sit down and write this thing all while being one of the top brokers in the City of Toronto! That’s why, so stop busting my nuggets about how long it takes me to release this report and focus on the info instead! Claro?
Let’s talk numbers…
You can check the graphic below or download the full PDF version here to see exact numbers.
So are we in a Buyers’ or Sellers’ market in our urban communities? Remember that my numbers here are laser focussed on our urban communities mostly South of Bloor.
To understand whether it’s a Buyer or Seller in the driver’s seat we need to look at four things:
- Total number of sales (Up 14.2%)
- Total number of new listings that hit the market (Down 17.9%)
- Total number of active listings waiting for a Buyer (Down 27.2%)
- Average Days on Market. (Down 11.1%)
So if 14.2% more properties sold, there were 17.9% less new listings, active listings were down 27.2% (absorbed) and days on market is down 11.1% that means there wasn’t enough supply to support the uptick in number of sales. Meaning, demand outweighed supply putting the SELLER in the driver’s seat for most property types in most urban communities.
Detached Homes in Toronto
Detached homes in Toronto continue to fly high. If you read last month’s report you would have read that $2M sales are way up from zero in 2016. You’ll see that trend continue into 2020 as more gen X’ers and boomers with loads of equity in their existing homes cash out of their larger condos and semi’s to upgrade (or move out of dodge) .
Just think about this for a second: Toronto is top 5 if not Top 3 Globally in Tech, Finance, Healthcare and Film all while having some of the World’s best schools. Toronto has finally managed to reverse the brain drain!
These thriving industries are creating tens of thousands of jobs annually from entry level right up to C-suite positions. Keeping locals and new comers fully employed and the demand for luxury real estate high.
Toronto’s Semi Detached houses used to be an affordable option for most buyers. Buyers that were moving up from their first condo or first time buyers with larger budgets getting into the market.
Things have changed! Folks with budgets under $900K will continue to have a hard time finding that 3 bed semi or row-home.
If you are willing to sacrifice a bedroom, a bathroom and dedicated parking you may find a solid 2 bed semi under $900K but it will likely need some work.
For us to find you a solid 3 bedroom semi detached that’s fully renovated then we’ll need a minimum of $1.2M and way up from there.
Townhouses (condo towns)
Townhouses continue to appreciate aggressively but have calmed down a bit from the double digit gains month over month from last year.
Most three bedroom (house alternative) townhouses are still going well north of $800K while their smaller counterparts can still be found for around $700K+/- in some areas like Rivertowne (just north of Queen and Broadview)
It should not come as a surprise that the most affordable product type is flying high.
Here are some hard condo facts for you to chew on:
- 147,000 Condos were sold over the past 3 years
- condo prices are up 50% in 3 years
- The average downtown condo is trading at $1200/PSF
- 60% Increase in sales of Condos priced $1.5M to $1.749M
- 24% Increase in sales of Condos priced $1.75M to $1.99M
- 20% DROP in sales of Condos priced at $500K or LESS
That 20% drop in sales of units priced under $500K isn’t a reflection of a down market. It’s a reflection of how aggressively prices have increased to the point where $500K or less isn’t really an option any longer in Toronto’s urban markets. Most buyers should be prepared to cough up a minimum of $600K to get into our urban markets.
Pre-construction condos are a great way to get into the market and I’ve identified 5 projects that provide incredible value and incentives right now. You can read that here.
That’s all for today, folks. There’s a lot to unpack here so please make sure you reach out if any questions. My team and I are always ready discuss buying and selling with you. 416-434-1511 or firstname.lastname@example.org
One last thing: don’t forget to join my digital family here. Don’t worry, I don’t blast my tribe with hard sells.