Looking back on 2012
Toronto home buyers, sellers and realtors had a busy year in 2012. A total of 85,731 homes changed hands – a number that was exceeded only three times in the past (in 2007, 2009 and 2011.) The 2012 sales volume was 3.7% less than in 2011.
The average price of a resale home rose to $497,298, an increase of 6.85% over 2011. Over the past 16 years, the average price increase in the GTA has worked out to around 6% annually.
Over the medium to longer term, certain trends have emerged in the Toronto market. Values in central areas of the city have increased dramatically during the past two decades. In general, price increases have been higher for houses than for condos. Neighbourhoods throughout the GTA have all increased in value, but not all at the same time, or at the same rate.
Average house prices in parts of Mississauga, Vaughan and Markham are often competitive with some City neighbourhoods. Economic growth in the GTA means that employment and commuting patterns have become more complex.
Prediction for 2013
Buyers are already poised to purchase homes in the first six months of 2013. Mortgage rates are still at record lows. The year is starting with very little inventory available – sellers typically wait for warmer weather before listing. Expect to hear stories about some old-fashioned bidding wars in the next six weeks, as frustrated buyers move in on attractively-priced new listings.
The fundamental drivers in Toronto real estate tend to be employment and immigration, both of which are positive trends. This fall. while economists were debating the effect of tightened mortgage qualification rules, Royal Bank CEO Gord Nixon exclaimed that Toronto “is absolutely going gangbusters.” That’s probably the best predictor of which way the market will go in 2013.
If you’re considering a move we’d be glad to help you plan out your options. You can email us, or feel free to call James and Joanne at 416-483-8000.