A strong start
January home sale prices were up – more than 9% over last year. The price increase was felt throughout the GTA. Detached homes under the greatest upward pressure in the City of Toronto, while other home styles and condos went up higher in the 905 area.
Actual transaction volumes were down slightly from last year, while the number of new listings was down significantly. As TREB’s president Dianne Usher commented, “it’s possible that strong price growth, and therefore an increase in home equity, will act as a trigger for more households to list their homes for sale.”
The rest of the year
The current strong demand for homes is a continuation of the busy fall market in 2013. There’s clearly a demand from buyers for all kinds of affordable properties, which will fuel price increases this spring and summer.
In 2013, the year’s activity started slowly, and the overall price increase for the year was “only” 5.18%, The average yearly increase of the past fifteen years is 5.90%. Our “projected” line in the chart is based on likely behaviour in 2014 and does not show the actual average price for January 2014, which was $526,528. (Once we have some February data we’ll add an “actual” line.)
In an environment where most of the attractive homes are subject to bidding wars, the way to win is clear… Know what the homes are likely to sell for, and know yourself. Winning isn’t about paying more than someone else, it’s about getting the best value in a home that you can afford.
Good agents protect their buyer clients from the craziness of bidding wars. They provide the context and objectivity to help buyers “win” on their own terms. On the flip side, a good agent knows how to list a home so that buyers will want to pay top dollar. In this market, an agent’s experience and market knowledge are going to add value for all clients, whether buying or selling.
If you’re thinking of selling your home this year…
…this is the right time to contact us! You can email us, or call James and Joanne at 416-483-8000. You’ll get the best hands-on guidance and service, from two experienced agents!