Toronto Summer 2014
Yes, sales are up, again, by a staggering 19% in Toronto! The average price of a detached home in the 416 is pushing a million dollars.
http://www.huffingtonpost.ca/2014/05/20/toronto-house-prices-soar_n_5359659.html?utm_hp_ref=canada-business
The number of detached homes sold last month were 1300 with a year over year appreciation of 13% in value.
[Flash back 4 years] http://youtu.be/mu269xorKBY Same Media Perspective.
Sales in the 905 are selling 3 times as many for houses with 3,500 units but the individual price is averaging $645K. Simply put, you are driving till you can afford it.
Sales in tony neighbourhoods like Roncesvalles Village and Bloor West only numbered 57 and 91 units respectively fueling multiple offers approaching $966,000 as an average sale.
While the House Prices are up, Condo prices are flat with values that reflect 2009 pricing as more units become available.
Skyrocketing house prices are forcing more first-time buyers into condos, just to get a foothold in the housing market; only 53% of Toronto home buyers can afford detached houses.
Why is the number of average homes declining?
Seniors (Baby Boomers) are not selling but are instead IMPROVING and Renovating their homes for a long term ownership and are sitting on their real estate assets. This further constricts the supply.
http://www.theglobeandmail.com/news/british-columbia/boomers-sitting-on-163-billion-in-real-estate-holdings/article18770674/?cmpid=rss1
Rentals are also softening their prices with a vacancy rate of 1.5% but bare in mind 70% of Condos in Toronto are Owner Occupied. (MacLeans)
http://www.macleans.ca/society/life/condo-hell/
There is a huge pool of singles, both young and old that live alone. Condos feed that need and lifestyle. Although sales numbers seem high, this market is in temporarily oversupply. In a few years time there will be fewer and the dynamic changes again.
If you would like to discuss what's happening in the Toronto Real Estate Market I invite you to add your comments here.
If you would like to buy or sell Give me a call.
647 218 2414
I answer my own phone
David Pylyp
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