The Toronto Real Estate Market continues to be a great investment as November’s average selling price jumped to $538,881, up 11.3% over last Novembers $484,208. This now brings the average price of a single family home in the GTA to $523,216, up over 5% from 2012.
The Toronto Real Estate Board reported 6,391 residential sales through the Toronto MLS system in November, representing a 13.9 per cent increase over the sales for November 2012. While pundits continue to offer their negative opinions about condominiums, almost 24% of Novembers sales (1,515) were condo apartments that sold at an average price of $354,864 up 9% from the same period last year.
As I had reported to you in previous months, the last 6 months of 2013 were expected to be extremely strong due to the pent up demand and a limited inventory of correctly priced homes on the market. Correctly priced is within 5% of market value. It seems like a very small difference, but homes even priced at 10% over market will languish without offers or activity until they come within that 5% value. Why? Simply put, agents have access to market data, as do buyers due to the Internet and access to information. Thus overpriced properties do not get the traffic required to get them sold and the average buyer is not prepared to play a long negotiation game with an unrealistic seller. Homes priced within 5% of market value, generally sold within 19 days and got a higher sale price than those homes that were overpriced to start.
December and the next 7-8 month period will continue to be stronger than 2013, as low mortgage rates continue to keep the monthly mortgage rates affordable. The affordability factor plus a limited number of homes on the market, inflation and the desire for home ownership will continue to raise prices. I expect the price of an average home to increase between 5%-6% in 2014. As the expression goes, “Have you bought your land yet? We are not making any more!”
I will be working over the holiday season, so if you have any questions, or know of someone interested in buying or selling, please let me know. I would love to help!
Best wishes to you and your family over the holiday season, and have a healthy and prosperous 2014.