2013 Real Estate in Review
December’s 4,078 residential transactions represents an almost 14% increase compared to the 3,582 sales in December 2012. The total 2013 sales for the year was 87,111, up about 2% over 2012’s 85,496. New listings were down by almost 4% over the same period.
Due to negative speculation about real estate values in the media, the sales in the first half of 2013 were sluggish as consumers became wary about purchasing, and sales were down compared to the same period in 2012. The second half of 2013 was marked by brisk sales, as consumers realized that prices and demand had continued and that as Roosevelt said in his 1933 inaugural address, “there was nothing to fear but fear itself!”
The average selling price for 2013 as a whole was $523,036, which represented an increase of 5.2% compared to the calendar year 2012 average of $497,130.
The average selling price will increase again in 2014 by more than the rate of inflation, probably 4%-7%, as the seller’s market conditions that drove price growth in the second half of 2013 will remain in place in many parts of the GTA. Neighborhoods of low-rise home types like singles, semis and town-homes will continue to be in demand as they are in great demand by buyers.
Continued immigration, the good economy, a positive outlook about the future and low interest rates, all will continue to drive the real estate market in 2014, and the future looks great for home ownership. Condominium sales will continue to be strong in 2014 as investors and young people continue to snap up condominiums in prime downtown locations. A strong rental market assures investors of great returns and high demand as Toronto continues to grow.
All in all it’s a great time to buy Toronto Real Estate. If you are considering a purchase in 2014, let me encourage you to do it now. The harsh weather discourages buyers from looking now, and represents a great opportunity while there is less competition!
If you have any questions, or know of someone who could use my expertise, please give me a call, I would be happy to help.