January 2019 Dear Friend,
The Toronto Real Estate Board finished off 2018 with 3,780 sales, a little bit less than the 4,500 I predicted, and that was accompanied by 31.5% fewer new listings than December 2017, a sign that tight market conditions will continue in many neighbourhoods.
The Toronto market remains price segregated, with luxury properties, those over $1,500,000, being the most impacted by the new mortgage and foreign buyer rules the government implemented in 2017. While that segment is very slow, more affordable properties and condominium apartments continued to be a hot commodity and increased in price.
Keep in mind, all of the above statistics are averages, and do not reflect reality, and that’s where the problems occur. For example, if only one house sold in a month for $2 million, the average price for that month was $2 million. If another home had sold that month for $500,000, then the average price would have been $1,250,000, not an accurate representation of what occurred.
The media is doing a disservice to the public sensationalizing these averages. Areas of the GTA continue to be in high demand with multiple offers and prices continuing to increase. Other areas are slower, with prices dropping.
This is not the time for averages, nor the time to sit on the sidelines. Excellent opportunities exist in today’s real estate market, depending on the individual's needs! This is an opportune time to trade up. For example, Condominium apartments have increased in price at a higher rate than townhouses. Now it’s possible to get more space at a smaller price differential than ever before.
Other such opportunities exist. It’s critical to have an experienced, full time professional, like me, on your side, highlighting those opportunities. If you have some questions on the market or have a friend who does, please give me a call and let me put my experience to work for you.
Have a great January!
Your Friend in Real Estate.
P.S. I am never too busy for your referrals