So what happens when Customers’ DEMAND (needs and wants) exceed SUPPLY? This consistent upward pressure on price is the result. Drill down and see what’s happening in your “frothy” GTA this month.
Surprise surprise! Sales in the GTA soared this January compared to January 2015. We saw an increase of 15% in sales and an increase of 17% in average sale price to a whopping $595K. This increase is largely because more high-end home sales took place this month, compared to other years, when condo sales and more modestly priced freehold homes are the main events at this time of the year.
New Listings were flat compared to last year, so buyers are eating voraciously into the existing inventory.
In the GTA, detached home prices increased, on average, by 20%….due to higher-end homes selling.
In the city, (416 area code) the numbers were typical of a “TALE OF 2 MARKETS”!
Detached home sales were up by 14% compared to last year.
Semi-detached home sales were DOWN by 22%….We’re out of business in this product.
Condos, however, were up 7% in sales and a ROBUST 12% in price!
The most staggering aspect for me was that only 19% of the GTA sales in freehold product took place in the city. Fully 81% of January sales, so far, have taken place in 905
When it comes to condos, though, 66% of sales take place in the city and the lion’s share of those sales take place in the downtown core.
Who wants to predict along with CMHC and TREB when this market will ‘temper’…I’d love to hear your thoughts. Oh, and if you’re thinking of selling, please let me know now. I’m ready to help you get what you want AND so richly deserve!