What a wild start to 2014! There have been several high profile sales that has caught the media’s attention. In Toronto, single family homes going $100,000 over-asking has become a normal occurrence. Many people are asking why this is happening, and who are buying these homes. The first part is simple: lack of inventory. There are simply not enough quality homes being brought to the market, and when they are – people are lining up to snatch these properties. The second part of who is buying these homes and where they are getting the money to do so is interesting. Many people are moving up, and cashing in on the huge gains in their home’s equity over a relatively short period of time. The other demographic is first-time home buyers who are combining their incomes to get a foothold in the Toronto real estate market.
The average home price in the GTA in January has climbed to $526,528. This is an increase of 9.2 percent over January of last year. Sales volumes were down about 5.5 percent due to the lack of inventory I mentioned in the previous paragraph.
If you have any questions after reading this update, I’d be happy to elaborate on any of the data and insights in this report or provide you with neighborhood-specific figures. Just send me an email or give me a call at 416-690-2181 to discuss.
The graph below shows a running tally of month-by-month averages prices in 2013 and 2014:
The chart below illustrates the actual figures for supply (active listings) and demand (sales):
|Supply vs. Demand|
|Jan 2013||Jan 2014|
The next chart outlines the average prices by housing types (detached, semi-detached, etc.). January 2014 and Year-to-Date (YTD) cumulative totals.
|Overall Toronto Average Prices by Type|
Thanks for reading my market update. As always, if you have questions, looking to make a move or know someone that is, let me know – I’m happy to help!