So here's the recent press release by the Toronto Real Estate Board, but scroll down to see urbaneer's comment:
"The Toronto Real Estate Board reported 8,000 home sales through the TorontoMLS system in October 2013 – up from 6,713 transactions reported in October 2012. Over the same period, new listings on the TorontoMLS system were down.
“The GTA home ownership market has been broadly characterized by a rebound in sales since the summer. Market conditions have been tighter in some market segments more so than others. Ground-oriented homes listed for below one million dollars in some areas of the GTA have been especially popular with buyers, while listings for these home types have been constrained,” said Toronto Real Estate Board President Dianne Usher.
“The supply of listings for many home types and price points has either been down year over year or at least not up by the same annual rate as sales. The additional Land Transfer Tax in the City of Toronto and the removal of the government guarantee on high ratio mortgages for home purchases over one million dollars have arguably led many homeowners not to list,” continued Ms. Usher.
The average selling price for TorontoMLS sales in October 2013 was $539,058– up by more than seven per cent in comparison to the average price of $502,127 in October 2012. The MLS® Home Price Index (MLS® HPI) Composite Benchmark was up by 4.5 per cent year-overyear. “Growth in the average selling price and the MLS® HPI Composite Benchmark will continue through 2014. Inventory levels for ground-oriented home types will be low from a historic perspective and home ownership demand will stay strong as affordability remains in check due to the continuation of accommodative borrowing costs,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis."
Here are the Toronto Real Estate Board's Sales Stats.
While these broad statistics suggest a strong real estate market in the GTA overall, caution should be exercised. The press release emphasizes the demand for "ground-oriented homes listed for below one million dollars". We can tell you from the 'real estate trenches' this is very much the case. Click A Winning Bidding War Strategy that tells the recent tale of one of our clients who successfully secured a detached freehold house in a highly desirable midtown location, after beating out six others in competition. But when it comes to the condominium market it's a slightly different, albeit not dire, story.
October saw 841 condominium units sell in the central districts (C01-C15) averaging 31 days on the market. While these were being traded 1699 units came to market, thereby increasing the total number of active listed condominiums to 2771. By comparison, 367 detached houses sold in the same geography averaging 22 days on the market. 698 freehold properties also came for sale last month, bringing the total number of freehold dwellings on the market to 898 properties. It shows three times as many condominiums are for sale as detached houses in the same geography, yet more detached houses sold. Clearly the demand for 'ground-oriented homes' has a higher oscillation (or 'buyer frenzy') than the condominium market which is more stable and, hopefully, balanced. Will these two housing types splinter into their own markets, or are they inextricably linked?
We discuss this in our comprehensive and insightful assessment of the Toronto real estate market in:
No matter how healthy Toronto's real estate market may be (or not), we analyze each neighbourhood, dwelling type, and price point segment as it pertains to each client, and then guide, educate and gently steer them into making a rational prudent educated decision specific to their needs, wants, wishes and desires. As one of Bosley's Top Producers, our continuing success spanning twenty-four years is the result of our comprehensive knowledge of mulitple micro-markets, and how each influences the trade of urban real estate. We're here to earn your trust, then your business.
~ Steven and the urbaneer team