In June we set a new record price for home prices in Toronto, as well as a return to the 2017 highs we saw in…
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How Did the Toronto Real Estate Market Perform in 2018?
2018 wasn’t much of a record-shattering year, and I don’t think anyone should be very surprised by the outcome! As we forecasted at the start of it, 2017 hit new heights in the city – and keeping on pace in 2018 would be nearly impossible. But that doesn’t make 2018 a disaster either. In fact, 2018 was a more balanced and easier to navigate market than in years past… so with that being said, let’s take a closer look at what happened!
Average Prices in Toronto for 2018
The average price of real estate in Toronto for 2018 was $783,082! There was a two-way tie for the highest average price with June and October both clearing $807,000. $736,783 marked the lowest average price and was set in January. Compared to 2017, the overall average price in Toronto declined by 2.85% or $23,000.
Total Number of Listings In Toronto for 2018
The busiest month of 2018 was May with more than 19,000 properties coming to market. As impressive as the number sounds, we were still 6,000 properties short of the 25,000 listings reached in May 2017. The slowest month for new listings was December with only 4,300 coming to market and was expected with the seasonal slowdown during the holidays.
Total Number of Sales
In total, we had 77,909 sales in 2018. That represented a sharp drop of 15,249 fewer sales (16%) compared to the 93,158 sales in 2017.
Days On Market In Toronto for 2018
It took 25 days (on average) for properties to sell in Toronto. From March to June that number went down to just 20 days, and in January and December, it went up to 30 days.
A Summary of 2018
To better understand 2018, we have to start back in 2017!
2017 was a pivotal year in the city, reaching historical highs for both prices and the number of properties sold. The driving source of the price appreciation in the market was the soaring prices for detached homes throughout the first part of the year. At its height, detached homes were selling for more than $1,500,000. Affordability coupled with buyer fatigue, government intervention and changes to mortgage lending resulted in a swift cool down from May to August. We saw prices start to pick back up from September to year end, but never quite reaching the highs we saw earlier in the year.
At the beginning of 2018, we cautioned that the media would focus solely on “Year over Year” comparisons. We also forecasted that the numbers wouldn’t be as strong as in 2017, and to expect sharp contrasts between the two years. It’s hard to get a real sense of where the market is at if you’re only comparing against a record-breaking year (and the same is true if we were to compare it with a less than stellar year). For this reason, we also added analysis of the three-month trend for each segment and gained a more accurate look at the direction of the market!
Prices of detached homes proved to be a double-edged sword. As they cut through the headlines of 2017 and boosted the monthly averages – they did the opposite in 2018, performing like more of an anchor bringing prices and overall averages down.
Detached homes experienced the biggest price decline in 2018. Prices were down by $76,000 on average (a 5.5% decrease year over year) to just $1,307,604.
On the other side of the scale, condo prices helped the market maintain its pace and took the top awards in several categories.
Condos represented the best-performing segment of the year – up 9.4% (from January-December 2018), they had the highest year over year appreciation – up 9% (or $49,900) and also recorded the highest number of sales at 16,348!
Townhouses started off strong, nearly tieing the 2017 record-setting price of $793,129 by recording a high of $792,180 in April of 2018. But from there on out, prices started shifting down with prices ending the year at $714,456.
In 2018, the Semi-Detached market caught our attention the most… and we think they’re going to continue to be the segment to watch in 2019! From January to November, prices have gone up by over 13% (even higher than condos). There are two main reasons for the sharp appreciation: Price Point and Housing style.
1. Price Point – semis have been hovering around the million dollar mark throughout the year. In many parts of the city, you can still buy a semi for less than a million dollars. This gives buyers the flexibility to purchase with less than 20% down (something that can’t be done with houses priced over a million). Even at the million dollar mark, semi’s represent a housing style (with land and a backyard) for much less than the detached average of $1.3 million!
2. Housing Style – Most people start the property ladder single, and in a condo. As they partner up and move up the ladder, a house is typically the next step. We think that as more condo owners trade up, demand for houses will increase (as we partially saw in 2017). The semi represents a more affordable option and smaller price gap when compared to a detached home. Most semi’s also come with 3 or more bedrooms. Bungalows (at times can be priced in the same range as semis) often times only offer 2 bedrooms. For those who want the space and style of a house but without the higher price found in the detached market – the semi is our pick best-appreciating segment in 2019!
Individual Market Performance by Segment
Detached Houses
Average Price: $1,307,604
Yearly Percent Change: -5.51%
Yearly Dollar Amount Change: -76,207.58
Yearly High: May $1,426,094
Yearly Low: December $1,145,892
Semi-Detached Houses
Average Price: $991,105
Yearly Percent Change: +1.75%
Yearly Dollar Amount Change: +$17,081.50
Yearly High: May $1,067,128
Yearly Low: August $891,208
Townhouses
Average Price: $738,458
Yearly Percent Change: +3.56%
Yearly Dollar Amount Change: +$25,407.17
Yearly High: April $792,180
Yearly Low: January $712,186
Condos
Average Price: $590,832
Yearly Percent Change: +9.03%
Yearly Dollar Amount Change: +$48,936.67
Yearly High: September $615,582
Yearly Low: January $543,279
In recent years, Toronto has seen a boom in modern home design. These modular structures stand out from many in the city with their unique appearance that usually features flat roofs, dark brick facades and expansive windows… but there is one modern home that truly stands out from all others, and that is Gordon Ridgelys final modern masterpiece – 7 Leander Court.
Gordon was born in Oshawa, Ontario on July 1938, and studied architecture at the University of Toronto. He graduated in 1965 with a passion for contemporary and modernist design. But at that time, there wasn’t much demand for such style and design – so he shifted his talents to creating Georgian styled homes. Over the years, that helped amass an impressive clientele list with the likes of Galen Weston and even Conrad Black… but his passion remained with modern design.
7 Leander Court was one of the final projects Mr. Ridgely worked on before his passing in 2013. The home marked a return to his passion for modern design and features much of exacting detail Gordon was known for… and now, for the first time ever, the home is being made available for purchase!
The home, located in the O’Conner and Woodbine part of town, measures in at over 3,600 sq.ft. (interior). It was designed to respects the principles of feng shui and is situated along the Taylor Creek Ravine on a private cul-de-sac. It features 4 bedrooms, including an incredible 3rd-floor retreat for the master. Expansive windows line that rear of the house and open up to the backyard where you’ll find a mini oasis in the city!
My colleague Rebecca Keyzer, who is representing the sellers for the sale of the home, shared some of the highlights from within:
This home was intentionally built to be low-tech due to the health concerns associated with technology. The house wiring was designed by an anti-electromagnetic consultant. Everywhere where your head will rest, the wires are coated in a stainless steel, industrial grade sheath to protect your body from any negative effects of electromagnetic radiation and bypass all sleeping areas.
The Details on 7 Leander Court
Address: 7 Leander Crt
Neighbourhood: O’Connor-Parkview Toronto
Price: $2,987,500
Bedrooms: 4
Bathrooms: 5
Parking Spaces: 3
Listed with: REBECCA KEYZER, Salesperson SAGE REAL ESTATE LIMITED, BROKERAGE
Photos: BirdHouseMediaca
For the second time this year, new guidelines are being introduced that will impact how Canadians get approved for a mortgage… and for the second time this year, a lot of people are confused by what these changes mean! I’ve put together a short video to better explain who IS and ISN’T affected by it, and what it all means.
10 Ways The New Changes May Impact You
- The new guidelines would introduce “STRESS TESTS” for all purchasers taking out a mortgage with MORE than 20% of a downpayment.
- If you’re putting LESS than 20% down, taking a VARIABLE mortgage, or a term of less than 5 years – you’re already subject to qualifying under a stress test. No change to this segment of the market.
- If you’re putting down MORE than 20% – you too will also be subject to the test.
- The guidelines will require purchasers with more than 20% down to qualify at the Bank of Canada Rate OR the Contract Rate + 2% (which ever is higher)
- For Example: Say the banks are offering you a 3% fixed rate for 5 years. In order to be approved for it, you must actually qualify at 5% (3%+2%).
- Because purchasers are qualifying at a higher rate, many will see their max budget amount reduced by roughly 15-20%
- The new guideline ONLY apply to those lenders that are deemed a Federally Regulated Financial Institution (currently 85 in Canada).
- Those that don’t fall under Federal Regulations are not subject to the new guidelines. The most popular alternative is CREDIT UNIONS like Duca or Meridian… although there is some discussion that they may adopt similar measures to the B-20 Guidelines.
- Although many will see their MAX budget reduced – it’s important to remember that NOT EVERYONE wants to spend the max a lender can make available for them. I know of many clients who chooser to only spend 60, 70 or even 80% of their max budget on a purchase.
- Like all changes in the market, there will be an adjustment period of probably 4-6 months for people to adjust to the changes.
More Reading:
Final Revised Guideline B-20: Residential Mortgage Underwriting Practices and Procedures
Canada’s banking watchdog sets tougher rules for mortgage lending
What Do They Want to Build at 3140-3170 Dufferin Street and 60-68 Apex Road?
Add another application to the developing Dufferin St strip! In 2015, RioCan submitted an application to amend the Official Plan at 3140-3170 Dufferin Street and 60-68 Apex Road. Currently the site is home to TD Canada Trust, Staples, Tim Hortons and Swiss Chalet… but if all goes according to plan, 2 new condo towers will be built on the site.
The application is calling for two mixed-use buildings of 28 and 22 storeys separated by a new public road. The proposed redevelopment will include 578 residential units and 5,632 square metres (60,622 square feet) of at grade retail space. It will also include 878 parking spaces, 1135 bicycle parking spaces and even a new public park as part of the redevelopment. Below are some early drawings of what the development may look like:
According to the proposal, the building will look as follows:
Building One
Building One (or Block 1), will front on Dufferin Street, will include the development of a 22-storey mixed use building with 263 residential units and 4,848 square metres (52,183 square feet) of grade-related retail and service commercial space.The building will consist of a 5-storey podium along all street frontages, an 8-storey mid-rise component along Dufferin Street and a 17-storey tower component above the 5-storey podium. The podium transitions to a mid-rise component for Levels 6, 7 and 8 located along the Dufferin Street, providing an outdoor amenity area in the northwest quadrant of the 6th level.
A total of 263 units are provided within Block 1, including 92 one-bedroom units, 136 two-bedroom units, 27 three-bedroom units, and 8 live-work units. Amenity spaces are provided on Levels 6, 9, 14 and 18. In total, Block 1 includes 617 square metres of indoor amenity space and 1,869 square metres of outdoor amenity space.
The building includes two levels of underground parking and parking areas central to Levels 2-5, accommodating a total of 444 parking spaces. A total of 667 bicycle parking spaces are provided.
Building Two
Building Two (or Block 2)
Block 2, located West of Building One, will have a site area of 4,470 square metres (excluding the public park and half of the northsouth public road) and will include the development of a 28-storey mixed use building with 315 residential units and 784 square metres (8,442 square feet) of grade-related retail and service commercial space. The building will consist of a 6-storey podium and a 22-storey tower.
The ground floor includes two retail units, one along Apex Road and the other in the northeast corner of the building. The residential lobby has frontage on the proposed new public street located south of the retail unit. The ground floor also includes 10 townhouse units within the podium that front onto the proposed new public park and 6 live/work units within the podium that front the proposed new public street, between the residential lobby and retail unit. The interior of the ground floor is utilized for bicycle parking, waste facilities, elevators and stairs, all accessed by a central hallway. The remainder of the podium (Levels 2-6) is occupied by residential units along the perimeter and a double-height fitness area on Levels 2/3.
Residential units within the podium are accessed by a central hallway connected to the centralized elevators and stairs. An outdoor amenity area is located on Level 4. Additional indoor and outdoor amenity space is provided on Level 9, 14 and 18. The top of the podium, at Level 7, is utilized for a green roof. The tower contains residential units accessed by a central hallway, which is connected to centralized elevators and stairways. The proposed height to the top of the 28th floor is 89.0 metres, with a height of 95.0 metres to the top of the elevator overrun/rooftop mechanical.
A total of 315 units are provided within Block 2, including 8 bachelor units, 99 one-bedroom units, 149 two-bedroom units, 53 three-bedroom units, and 6 live-work units. Amenity spaces are provided on Levels 2, 4, 9, 14, and 18. In total, Block 2 includes 1,309 square metres of indoor amenity space and 1,012 square metres of outdoor amenity space.
My Thoughts on the Proposal
The success of the Treviso development is proof that Dufferin, North of Lawrence is ripe for development! The west side of Dufferin has much larger lots than the East, and I think utilizing the lands make most sense. The retail at grade helps keep business in the area, and the towers above can add to the shortage of housing options in both the city – and the Dufferin and Lawrence neighbourhood. In the City report, there were a lot of items that needed addressing, but my hopes is that they all get sorted out and the Dufferin strip continues to develop!
An application has been submitted to the city to build an 8 storey midrise, with 105 suites and Dufferin and Lawrence. Take a look at…
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The Problem
With the winter winds rolling in, the time had come to do some maintenance at my rental property. All I had to do was turn off the outside water off from in the home – a fairly standard job that I do every year. As luck would have it, the valve wouldn’t close. So I did what any stubborn male would do… I tightened it until I broke it. My one problem quickly became three: The water line wasn’t closed, the valve was broken, and I had no time to master the art plumbing.
The Solution – Jiffy on Demand
JiffyOnDemand is a new Toronto based app that makes home maintenance a breeze! They connect homeowners with professionals in a variety of trades – from small jobs like furniture assembly and lawn maintenance, to larger jobs like electrical and duct cleaning… they even have professionals on call for seasonal jobs like BBQ cleaning, and Christmas light installation!
Above is a small sample the services JiffyOnDemand offers
The “Jiffy” concept is to connect homeowners for jobs that need same day attention – but you’re also able to schedule jobs for future dates.
I needed a plumber – and fast! After downloading the app, I typed in “plumbing”, filled in a few details about the job, and was instantly connected with a plumbing professional. Within minutes I received a phone call from Mike Ginglo from Momentum Mechanical Contractors (so refreshing to actually speak with the person carrying out the work). I loved that they were able to give an exact timing for when the work would start (instead of a 8 hour window that most trades offer). On the day scheduled for work, Mike followed up with another call to reconfirm the time – I’m a stickler for detail, and was so impressed with how organized he was!
The JiffyOnDemand app displayed the minimum price and first hour rate of the job as well as a break down of what additional time would cost. This in itself was a huge timesaver as I didn’t have time to wait for a call back to confirm price. As part of the signup process, you provide them with your credit card number, and they bill you once the job is complete.
Mike and his assistant showed up on time, and got right to work. The job required replacing the old pipe, valve and hose bib with new parts. Within the hour they had everything done! I’m one of those eager beavers who likes watching the job get done so I can learn for next time. Mike went the extra mile by explaining what was wrong with the old valve and the benefits of the new one. He even answered my follow up questions via email and offered a few tips for winterizing the house for future seasons – this gave me complete assurance in his expertise and the job preformed!
The Verdict
Had I decided to fix the pipe my self – it would have easily turned into a month long project! From my first few taps with JiffyOnDemand to the overall experience with Mike and Momentum Mechanical – I give them: 4.95 plumber wrenches out of 5 … the only minor improvement would be with communicating the cost of materials. Jiffy can only display prices for the labour, as the cost of materials vary based on the job! I was charged fairly for the materials, it just would have been helpful to have a rough estimate at the start of the job.
We've compiled some of the best storage bed solutions for small spaces in Toronto.
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