Last week, the Toronto Real Estate Board released its February 2014 home sales figures for the Greater Toronto Area (GTA). We saw a moderate 2.1% up-tick in sales this past February despite the extreme weather and a pervasive shortage of listings in the low-rise segment. The pace of average price growth was extremely brisk year-over-year at 8.6% – well above the rate of inflation.
One of the key drivers of real estate price growth is the relationship between listings and sales – the economics of supply and demand. So one of the metrics we use in the Toronto real estate market is to look at months of inventory (MOI). To calculate this, we would look at active listings at the end of a given month and divide that by the sales that we saw during the month. Months of inventory gives us an idea of how long it would take to deplete the standing inventory given current market conditions. This February, the Toronto Real Estate Board saw MOI at 2.5 (down from the same period last year) – this firmly entrenches us in a Sellers market. At least 4 months of inventory is required to have a balanced market.
As inventory levels coming out of the 2008 recession have been lower than what we’ve been used to in years before, the Toronto real estate market continues to experience an upward pressure on selling prices and intense competition among buyers. Low-rise listings will remain constrained this year – so that will keep months of inventory low throughout 2014.
If property owners in this market are considering selling, now is definitely the time to capitalize on building equity from the sale of their property while investing in their future. If they are looking for exceptional market and investment knowledge, along with that element of professionalism and being catered to that comes from paying attention to every detail, I can help – please fill out the form below and I will connect with you shortly.
Your home may be worth a lot more than you think.
The equity in your Toronto home is like any other investment – it needs to be monitored. Homeowners should have their equity evaluated once a year. Now might be the perfect time. The Toronto real estate market is in the midst of an extremely strong seller’s market with no lack of demand and chronic, low inventory levels. It’s no surprise then, that it’s a good time to be selling.
Have a look at a recent listing of mine in North Toronto – at 7 Cardiff Road – sold 9% over ask in 6 days:
If you’d like to receive my monthly online newsletter with up-to-date market information on the Toronto real estate market, or would like some insight regarding your Toronto home, please fill out the form below and I will connect with you shortly.
While the media may have us believe that the sky is falling with respect to the Toronto condo resale market, the reality is that this “doom-and-gloom” scenario couldn’t be further from the truth. My experience indicates that the resale market for Toronto condos under a half-million is very strong, with prices averaging $500-600 per square foot, depending on the building location and finishes. For the past two years, condo rentals have outpaced sales but I expect this to reverse this year. Downtown Toronto freeholds are relatively expensive compared to downtown Toronto condos, not just in terms of overall price but also on a price per square foot basis.
Condos in the current Toronto real estate market that are well-priced and in the best showing condition possible will sell! Take this recent listing of mine – a stunning, sun-drenched, unobstructed Corktown District Phase 2 loft featuring 739 square feet of living space with 1 bedroom plus den, semi-ensuite 5-piece bath, ideal open concept layout, in addition to an east-facing 385 square foot terrace. This past November, it sold for 98% of the asking price in only 11 days.
“Marian made the potentially stressful experience of selling our condo into a very pleasant one. She was extremely organized, efficient, and professional. She answered all the questions we had and was extremely responsive. Very practical in her approach, she brought realistic expectations to us and was always upfront with us. With her help, our condo sold very quickly (noting that it was listed in November). We would love to have Marian represent us again!”
If you’d like to know how the downtown Toronto condo resale market is doing for your specific building, or if you’d like to receive my monthly online newsletter with up-to-date market information on the Toronto real estate market, please fill out the form below and I will connect with you shortly.