It’s that time again and the moment we’ve been waiting for. The first month of the 2013 Toronto real estate market is under our belts and the numbers are out. Let’s take a look and see what went on in January:
- 4,375 sales reported, a slight decline when compared to 4,432 sales in January 2012
- Average sale price in the GTA was……$482,648, up 4.3% when compared to the same time last year
- Average sale price in the 416 area was….$507,859, up almost 2% when compared to January 2012
- Average selling price for a detached home in the 416 area was $765,049, up 2.7%
- Average selling price for a semi detached home in the 416 area was $586,080, up 12.5%
What does this all mean? Well TREB (Toronto Real Estate Board) President Ann Hannah had this to say:
“The January sales figures represent a good start to 2013. While the number of transactions was down slightly compared to last year, the rate of decline was much less than what was experienced in the second half of 2012.”
What does this all mean? Well this is what I have to say:
These numbers are indicating a lack of listings in downtown Toronto, especially in the semi detached sector, a favourable choice for young families looking to upgrade for more space, because of the affordability factor when compared to fully detached homes in Toronto. It looks like a) there was no 25% decrease in home values as predicated by the media at the end of 2012 and b) we are already starting to see tight market conditions while the weather in Toronto tries to make up it’s mind whether it’s winter or spring. Yes, sellers can’t expect those astronomical prices buyers were paying during the first half of 2012, but what they can expect is a relatively quick sale, due to almost no competition. Also if priced at market value and I mean true market value sellers, who knows what can happen. Buyers and sellers alike both need a bit if compromising, it’s the market we are in right now. Don’t think the spring market is a great time to list and hold off your decision, as most people are thinking the same which equals more competition. Get it on the market now! I’ve seen stale listings from the end of last year being re-listed now and selling for great prices in a matter of days. The market is finicky and that’s why you need a good Realtor who is well informed and knows what they are doing! Remember a lot of buyers that took a step back last year because of the new mortgage rules, are back at it again right now and they are serious about purchasing.
Stop sitting on the sidelines waiting for a) the Toronto market to crash, because it ain’t happening b) get in there before everyone and their mother does. This will only lead to tighter competition for you. What I AM saying is get out there, start hitting the pavement with a Realtor who knows what’s going on and be agressive! Make sure you are pre qualified and have all your ducks in a row, because once you find the home of your dreams, you gotta move fast. Don’t second guess yourself as you will be sadly disappointed, I’ve seen it happen. At the end of the day you always need a place to live so look at your purchase from 2 angles….1) A home 2) An investment. Your property value will go up, especially if you’re purchasing in Toronto. Toronto is just a baby , still has a lot of growing up to do and land is scarce, single family homes are coveted and will continue to be so as families evolve and grow. So don’t wait to get priced out!
Here’s a quick video analysis as to what happened in the January Toronto real estate market and the overall outlook for 2013
What are your thoughts?
Are you thinking of buying or selling and need some help navtigating through the Toronto real estate market? I’m always here to help, just drop me a line below!