Tag Archives: semidetached homes

What’s driving the demand?

Toronto home prices 2016

Each new year tends to mark a fresh beginning in real estate, but 2016 is clearly something special. Take a look at the chart above, and you’ll see how the gap in year-over-year prices started widening in March and April, 2015. Since then, double-digit increases have been reported in various categories of the market, both in the 416 and 905 areas.

Which kinds are going up the most?

By 2015, price increases outside the City of Toronto started to be steeper than those within the city. And as of the first half of this month, it’s clear that the greatest percentage increases are in the most affordable categories. In the 416, the average townhouse is 22% up over this time last year. In 905, semi-detached homes are up 15%, and detached homes are up 19%. These are all categories where first-time buyers can hope to purchase a home on the ground, in the broad range of $500,000 to $800,000.

Condo apartments are somewhat different. The mix is changing to include more new units, often smaller than the older ones. Even so, lower prices are drawing more buyers to condos in parts of the 905, with the result that average apartment prices are now rising four times faster in the suburbs, compared to the 416.

In this context, the price increases for detached homes would appear to be levelling off. There are parts of the city, however, which are experiencing the most explosive price increases ever in 2016. Inner suburbs like Don Mills, with bungalows built on large lots in the 50s and 60s, are seeing price increases of over 20% this year. Meanwhile, a shortage of resale homes in the core neighbourhoods of the old city has guaranteed bidding wars on just about any listing.

You need a plan

Whether you’re in the market for a house or a condo, you need a smart team to plan and execute a winning strategy. We’re available to talk… If you’re ready to start a conversation you can email us, or ask for James and Joanne at 416-483-8000.

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The Millennials are coming

2015 - the first six weeks

To see the new year kicking it up a notch is pretty standard in Toronto real estate. So the 10% price jump in the past six weeks is not big news in itself. What’s more interesting is the evolution of supply and demand in the GTA.

According to our Board’s figures, 18.4% more detached homes were sold in early February, compared with a year earlier. At the same time, the number of new listings in the system was also up, but only by 3.5%. There were similar results for semi-detached houses, townhouses, and (in some areas) condos.

The sales tell only part of the story. So far this year, we’ve taken part in multiple offers across the City and also in various 905 communities. One downtown sale this week involved “only” seven offers, while a Sage listing three weeks ago attracted 27 bids. In Mississauga and Milton, we spoke with brokers who are getting used to multiple bids on the first night of a listing… they’re starting to resort to setting a date for offers, just like downtown.

With the number of new listings increasing, the figures show us that sellers are not holding back from the market. The real story is that a new generation is entering its home ownership years. Millennials have sometimes confounded the experts. They haven’t bought as many cars as they were supposed to. But home ownership make sense to them, and they know what they want.

Shifts in demand

The strongest demand for homes in Toronto is in the older central neighbourhoods. These are  highly walkable communities that are rich in social infrastructure. Until recently, they were priced below the Toronto average. Now they are the pace-setters in Toronto real estate: Roncesvalles, Leslieville, Dovercourt, Danforth Village, and others like them.

The result is high prices all round, and locational adjustments. In Toronto, the average price for a semi is $700,000, and the average detached is over $1 million. In the 905 belt, the average price for detached homes is less than for a narrow semi downtown. At the same time, average prices in York, Peel, Halton, and Durham are all moving up, in apparent lockstep with Toronto.

House vs. car

The trade-off for many new buyers is in transportation. The $600 a month it costs to operate a basic car can also pay a significant chunk of mortgage. Buyers are making choices today. Many are opting to be closer in: making a choice to pay more for housing, and less for transport.

And significantly, an increasing number of the 905ers who commute are using transit. Only one in four commuters now drives a car, while 80% of the rest rely on GO Transit.

The right time to sell

Those early bidding wars point to a continuing sellers’ market in 2015. Do you know someone who may be ready to sell their home this year? We’d like to hear from you. With our expert marketing, that home will get sold quickly and for the highest price! You can email us, or call James and Joanne at 416-483-8000.

The spring market is up and running

Projected average monthly prices

Toronto home sales January 2015

January update

In Toronto, January home sales are often at the mercy of the weather. In 2015, January’s new listings were up, the number of sales was up, and average prices were up. During the month, the Bank of Canada lowered its prime lending rate, and chartered banks moved key mortgage rates lower. (Experts predict another downward move in rates, in March.)

Demand creates scarcity

The strong demand for houses in the old City of Toronto continued in January.  Some listings received 10 or 20 offers (one Sage listing received 27 bids.) While we in the business may describe it as a scarcity of listings, the truth is that an unprecedented number of people want to live in the central part of Toronto, including older areas with small homes that are rapidly being gentrified.

The average price for a semi-detached home in the City was $667,000 in January. In the 905 area, the average price for a semi-detached home was almost a third less… $455,000, but still up 9.4% compared with a year ago.

The right time to sell

Do you know someone who may be ready to sell their home this spring? We’d love to hear from you. Without a doubt, a properly marketed home will sell quickly and for the highest price in this market! You can email us, or call James and Joanne at 416-483-8000.

Price growth in the suburbs

Leslieville detached

Which price is rising faster? One of these…

Don Mills bungalow

Or this one?

Everyone knows how prices are going up in the trendy downtown areas. But here’s something to keep an eye on… This fall, prices in the suburban 905 area increased at a greater rate than in the central 416 area.

These price increases are showing up in detached homes and semis, and also with condo apartments. Specifically, the average price for detached homes in the 905 area was up 10.6% in October 2014, compared to last October. That same stat for detached homes in the 416 area was 8.7%.

Similarly, the average price for semi-detached homes in the 905 area was up 8.3% in October 2014, while the same price increase in the 416 area was 5.4%. For condos, the 905 increase was 4.6%, while in the 416 it was 1.5%.

Affordability
Why are buyers pushing up suburban prices, even when there are few bidding wars? The reason is affordability. At this point, the average price for a detached home is 30% lower in the 905 than in the 416. And the average condo price in 905 is more than 20% lower than in 416. Those price differentials make a compelling argument.

We’re used to talking about how home prices are always going up in Toronto, and we usually focus on the older neighbourhoods – the ones with homes built before World War 2. But there is a finite number of detached homes and semis in old City neighbourhoods. Buyers are looking for alternatives that fit their budgets. This can mean different locations, or different styles of housing.

Plan ahead
If you’re thinking of buying, it’s good to bring your agent into the process early on… You can email us, or call James and Joanne at 416-483-8000. We have broad experience in central Toronto and many parts of the GTA. We’ll help you develop your strategy and get you into a home that’s right for you!

Toronto Market Update – Nov. 5, 2014

November 2014 Toronto Home Prices

As our chart shows, fall home prices are moving sharply upwards in the GTA, in the typical year-over-year pattern. The average selling price for October 2014 transactions was $587,505 – up 8.9% compared to the average of $539,286 reported for October 2013 (and up 11.6% from the monthly average in January 2014, the lowest point of the year.) The trend in recent years has been for two equivalent price peaks each year, typically in May and October.

A new trend?
We’re used to seeing the strongest price growth in low-rise homes, and a more moderate increase in condo apartments. But here’s something to keep an eye on… This fall, prices in the 905 area have increased more than in the 416. This is happening with detached homes and semis, and also with condo apartments. The likely cause — affordability. At this point, the average price for a detached home is 30% lower in the 905 than in the 416. And the average condo price in 905 is more than 20% lower than in 416.

Where demand is strongest
There is a finite number of detached homes and semis in old City neighbourhoods. Buyers are looking for alternatives that fit their budgets. This can mean different locations, or different styles of housing.

“While sales growth has tracked strongly so far this fall, many would-be home buyers have continued to have difficulties finding a home due to the constrained supply of listings in some parts of the Greater Toronto Area, particularly where low-rise home types are concerned,” said Jason Mercer, TREB’s Director of Market Analysis. “The resulting sellers’ market conditions are forecast to drive strong price growth through the remainder of 2014 and indeed into 2015 as well.”

Plan ahead
If you’re thinking of selling, it’s good to bring your agent into the process early on… You can email us, or call James and Joanne at 416-483-8000. We have broad experience in central Toronto and many parts of the GTA. We’ll help you with your plans and create a strategic marketing plan that works for you.

Toronto Market Update – Aug. 12, 2014

Toronto Home Sales 2014
The average selling price for homes in the GTA was up “only” 7.5% in July, compared to July 2013. Condo apartment resale prices were up 5.3%, while the average price of a detached house in the City of Toronto was up 11%. About 10% more properties were sold during this month than in July 2013.

These figures pretty much resemble those from previous months this year. The high demand for detached homes has had its spill-over effect on the price of more affordable semidetached homes and condo apartments.

Still a few weeks till fall!
In Toronto, the fall market usually picks up steam in the second week of September, and runs into early December. While not as long as the spring market, the fall usually produces comparable peak prices (see the chart above). For buyers, the last weeks of summer can be a pleasant time to search for good values!

Real estate is local
The ratio of bidding wars varies in different areas. It also typically shifts during the year. At this time, fewer downtown homes are selling over asking, compared to the spring or fall markets. In some other parts of Toronto, this ratio has stayed more or less constant during the summer weeks. We run charts on many areas in the GTA, to track the hyper-local trends!

If you’re thinking of buying or selling this year, this is the right time to contact us! You can email us, or call James and Joanne at 416-483-8000.

5 reasons to call your agent when planning a reno

Basement reno

As real estate agents we help our clients in many ways, apart from buying and selling. We’re always delighted when clients call us for advice! If you’re planning a home renovation, here are five powerful reasons to bring us in first…

  1. We know you, and have a good idea already of what your values and goals are.

  2. We’re familiar with lots of houses and different designs that have been tried in other people’s homes.

  3. We have experience with contractors (both good and bad!) and can help you make informed choices.

  4. We know the market and can advise on which reno ideas will add value to your home (just saying!)

  5. We have enough hands-on expertise that we can share practical tips about how to approach the project and what “unexpected” things to expect.

One subject that comes up with owners is whether to renovate or move. (More than one TV series has been built on this premise!) The quick answer can be summed up this way: For most homes, there is an expenditure ceiling, related to values in the neighbourhood. Do not over-improve your home.

A related question is, how much should I improve my home to help it sell? This is really a whole other topic. The best approach is to discuss it in the specific context of your home, its location, and the prevailing market conditions. (Yet another reason to call us!)

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. We know how to position your home so that you will achieve the best results in today’s market.