How’s the market you ask? Keep reading…
It’s that time of the month again when you get one article telling you the sky is falling and some excited agents telling you “it’s always a good time to buy”. My goal is to provide very important context so you know how the market in your area is performing at any given time.
It’s not reasonable to think that our market will continue to move forward this aggressively. It’s equally as unreasonable to expect a crash when our market is propped up by so many industries. Film, Finance, Medical, Tech and immigration are all doing a their part in keeping the demand funnel full.
Even if interest rates increased (beyond normal and healthy increases) and removed 50% of the buyers from the marketplace, we’d still have enough Buyers available to absorb available listings with the current level of inventory. But there’s no reason to expect a major increase in interest rates. Most of the Federal candidates are now talking about ways to make it easier to buy…which is a huge mistake in my opinion. But that’s a topic for another post.
MAKING IT EASIER FOR PEOPLE TO BUY WILL NOT MAKE TORONTO REAL ESTATE MORE AFFORDABLE. It might make buyers be able to carry more debt but prices will reach new highs month after month.
So what communities are we talking about here?
I only look at the urban numbers South of Bloor from Roncesvalles to the West all the way to the end of the Beaches. So this data is super relevant to those of you living in communities like Roncesvalles, King West, Queen West, The Core, Corktown, Distillery, Riverside, DVP/Queen/King areas, Leslieville and The Beach!
If we take a look at the New Listings vs. Sales across the city it paints a clear picture of how each property type is performing.
For example, in the West’s urban communities new listings were up 20.8% while the actual number of sales jumped a whopping 27.6%. so 24.64% more properties sold than were listed.
Supply down…demand high. Clearly enough buyer activity in the West to absorb the increase in new listings…and then some.
The Central urban communities told a bit of a different story with the number of sales up a mere 5.9% while new listings increased nearly 10% when compared to 2018. You can see that reflected in slightly lower year over year average prices in the graphic below.
The East, the darling of Toronto for over 5 years now is performing very well. New listings in Leslieville, Riverside, Riverdale and Corktown right through to The Beach jumped 18.14% while sales leaped an astounding 27% over 2018.
The actual sales exceeded new listings by nearly 49%. That’s a serious indicator of the demand for the East and a very strong seller’s market.
Condos have been the most aggressive housing type over the past few years. From East to West they’re preforming very well especially at the lower price points. We still have condo options in the $400’s but they’re few and far between in any desirable building.
For condos: I predict a $600K entry level price point within the next 12 months. We’re already averaging much higher than that due to many families jumping into the vertical family club and buying larger apartments.
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.