THE TORONTO REAL ESTATE MARKET
2005 VS 2015
It’s been 26 years since I sold my first house. So much has changed since then. You only have to go back a decade to see that today’s market is a brand new ball game. How so? I’m glad you asked…
- One of the biggest changes is the manner in which properties are purchased. The slow, deliberate process is no longer viable. Today’s buyers are more educated and informed than ever before. They speak with realtors and learn from real estate websites. They know how to recognize good value and seize market opportunities.
- The other major difference is the price that buyers will pay for properties on the market. In 2005, buyers could offer the asking price (or slightly higher) and buy a house. In 2015, the asking price is losing its relevance. Price is actually determined by the highly competitive market forces, otherwise known as bidding wars.
WHAT I’M FORECASTING FOR THE LAST QUARTER
- As we move into 2016, the major concern is the shortage of inventory. The low number of houses on the market could have a significant impact on prices, and ultimately on affordability. At the end of September there were 16,165 properties available for sale. This figure represents 7.3 percent fewer houses (17,765) than last year. This discrepancy translates into only 1.9 months of inventory in the GTA; and 2.2 months of inventory in the City of Toronto (due to the high concentration of condominium apartments). These low level of inventory will continue to generate competition for detached and semi-detached properties, and sale prices will continue to rise. Given the demand in Toronto, the only thing that will prevent October’s numbers from reaching new records is the lack of available properties on the market.
- September sales were not restricted to the lower end of the market. There were 903 properties reported sold for more than $1 Million, and 154 exceeded the $2 Million mark. In September, there were 32 properties sold for more than $3 Million – 28 percent more than in September 2014. It would appear that real estate’s new high end begins at $3 Million.
