With Super Bowl 2016 and Valentines Day quickly approaching, I thought it fitting to also celebrate the exciting results of the first month of 2016 for the Housing market in the Greater Toronto Area! And yes, it was another stellar month!
Sales AND average sale prices soared!..8.2% and 14% respectively. But the takeaway from that is not that your home is automatically worth 14% more than last January. In this case, it was because so many more luxury priced homes sold in January than is customary. These properties are usually “parked” and listed later in the Spring when the buying public is more motivated. However, due to total listings being DOWN by 14% this year, buyers decided to get out there while the going was good and before prices went up even more for these homes!
A better metric to use to assess current values is called the “Benchmark”. That is a number which reflects the appreciation of a home that has sold and then resold over 4-5 years….and that number is 11%.
The bulk of these sales took place in the 905 area code, as has been the trend for the past several months…63% to be accurate. And that is because Toronto proper has so little to offer in terms of freehold homes to buy. We do have some condos to satisfy demand, however, and so sales of condos have risen 12% and the average sale prices also increased by a whopping 9% to $416K!!
So, no bubble or major issues on the Toronto Real Estate horizon at the moment. Rates are not likely to change for the foreseeable future, though we are all “on alert” as far as affordability is concerned. We take nothing for granted here; however, the other pillars of our economy seem to be strong (looney notwithstanding!). But even the weak looney acts as a “magnet” for foreign buyers who see Canada and Toronto particularly as a great place to invest!
Toronto prices continue to rise. Do you know what your home is currently worth? Don’t you think you should? You should call me. I’m happy to share my expertise!
If you know anyone who’s looking for a Realtor who cares MORE about focusing on you, your concerns, goals and the successful sale of YOUR individual home, than they care about their volume of transactions and awards, please let me know the best way for me to connect with them because I’d love to offer them my personal service. Contrary to what many may think, this IS business and it IS personal! And, please, I encourage you to ask me any questions you may have about this post. I value your input and appreciate the time you took to read it.