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Monthly Market Updates

Toronto Real Estate Market Report – November 2020

 

According to the calendar… this year is almost over. According to November’s market numbers, the craziness continues!

The Toronto Real Estate Market saw a drop in new listings, active listings and overall sales. It also took about 4 days longer (28 versus 24 days) for homes to sell in the city. But between a mid-month lockdown and the seasonality of the year – this didn’t really come as a big surprise. 

Average Price

The average price of a home in the city increased by 13% when compared to the same time last year, bringing us to an average price of $955,615. And for those keeping score… that’s a $116,000 increase since January of this year (not bad during a pandemic).

 

Every segment of the market saw a drop in sales for November. The detached market had the biggest decline with a 24% drop month over month. However on an annual basis, both detached and semi-detached saw great gains with an 18% and 36% increase for each. Price increases were also the strongest for these two segments up over 8.5% for each. 

Condo Activity

2020 was definitely NOT the year of the condo!  In November, sales were down by more than 4% month over month – and nearly unchanged year over year. Prices followed the same trend – down by 4% month over month and nearly 3% year over year (nearly $20,000 less than the same time last year).

… but it is in the condo market that we see the biggest opportunity. With prices down and supply up, buyers, especially in the downtown core, these next few months offer one of the greatest times to get into the market. A quick MLS search for 1 bedroom condos south of Bloor brought up nearly 150 listings – this time last year, that was practically unheard of!

Three Trends To Watch

  1. We’re optimistically hoping that vaccines and the current lockdown help bring down COVID-19 case numbers in the months ahead and a return to a new normal.
  2. New by-laws for AirBnB operators will be enforced in early 2021 – will this impact supplies in the condo market further
  3. Will those that left the city due to COVID-19 make it through a northern winter? And will that impact demand in 2021?

 

DETACHED HOUSES

993 sales took place
295 fewer homes than the previous month (24% decrease in sales)
145 more homes than the previous year (18% increase in sales)
The average price of a detached home was $1,477,226
An increase of $6,369 compared to the previous month (0.4% increase in price)
An increase of $116,980 compared to last year (8.6% increase in price)

 

SEMI-DETACHED HOUSES

336 sales took place

80 fewer homes than the previous month (19% decrease in sales)

89 more than the last year (36% increase in sales)

The average price was $1,160,911

An increase of $6,824 compared to the previous month (.59% increase in price)

An increase of $93,884 compared to last year (8.8% increase in price)

 

TOWNHOUSES

362 sales took place

47 fewer homes than the previous month (11.5% decrease in sales)

68 more homes than the previous year (23.13% increase in sales)

The average price was $819,752

decrease of $8,338 compared to the previous month (1% decrease in price)

An increase of $56,454 compared to the previous year (7.4% increase in price)

 

CONDOS

1,375 sales took place

63 fewer condos than the previous month 4.4% decrease in sales)

more condos than the previous year (.5% increase in sales)

The average price was $640,208

decrease of $27,953 compared to the previous month (4.2% decrease in price)

decrease of $19,647 compared to the previous year (3% decrease in price)

 

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Monthly Market Updates

Toronto Real Estate Market Report – October 2020

As we enter the third quarter of pandemic activity in the city, one thing is becoming abundantly clear – houses are in high demand… and condos, not so much!

The average price in the city hit a new all-time high of $968,318 – largely thanks to the surge of prices in both the detached and semi-detached house markets. Condos continued to trend down in price with an average price of $668,161 nearly unchanged from last year’s monthly average.  

As rent prices continue to decline for condos (down 15 – 20%), and supply continues to increase, buyers have ample options to choose from. With the holidays around the corner, we’ve advised many clients to hold off on plans to sell (if possible), and revisit listing in the second quarter of 2021.

Three Trends to Watch

  1. a second lockdown may be looming in the city, and with it could come a further hit to consumer confidence. Could this impact all housing styles?
  2. with rent continuing to decline, will condo prices continue to soften?
  3. What impact, if any, will this have on the pre-construction market?

DETACHED HOUSES

1,228 sales took place
67 more homes than the previous month (5.77% increase in sales)
194 more homes than the last year (18.76% increase in sales)
The average price of a detached home was $1,470,857
A decrease of $16,265 compared to the previous month (1.09% decrease in price)
An increase of $147,842 compared to last year (11.17% increase in price)

SEMI-DETACHED HOUSES

416 sales took place
5 fewer homes than the previous month (1.19% decrease in sales)
94 more than the last year (29.19% increase in sales)
The average price was $1,154,087
An increase of $8,528 compared to the previous month (.74% increase in price)
An increase of $54,285 compared to last year (4.94% increase in price)

TOWNHOUSES

409 sales took place
7 more homes than the previous month (1.74% increase in sales)
69 more homes than the previous year (20.29% increase in sales)
The average price was $828,090
A decrease of $39,915 compared to the previous month (4.60% decrease in price)
An increase of $32,975 compared to the previous year (4.15% increase in price)

CONDOS

1,438 sales took place
111 fewer condos than the previous month (7.17% decrease in sales)
137 fewer condos than the previous year (8.7% decrease in sales)
The average price was $668,161
A decrease of $18,030 compared to the previous month (2.63% decrease in price)
A decrease of $5,530 compared to the previous year (.83% decrease in price)

 

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Monthly Market Updates

Toronto Real Estate Market Report – July 2020

So much for a Summer slowdown!

Sales in the city were red hot in July – with a record-setting 11,000 + sales recorded for the month. We haven’t seen that much activity since April 2017. The average price of real estate in the city followed a similar trend hitting a new high (second month in a row) of $943,000. This represents an increase of nearly 17% compared to the same time last year… in a pandemic (crazy, I know).

You can thank the detached housing market for the increase in prices and sales – with a 2020 high of $1,540,000 up 1.3% from June and a whopping 25% from July 2019!

The price of semi-detached homes came down from last month’s high $1,287,000 to $1,181,000 – still up an impressive 20% from last year’s average of $981,000.

Condominium apartments had a lot more activity in July, with a 31% spike in activity than June. However, the increase in activity didn’t translate into much of a price jump, with average prices up only 1.5% compared to the previous month. Year over year, condos saw an 8.7%, which may sound good on its own – but was significantly less than the double-digit appreciation semis and detached houses recorded.

Demand for low rises (detached and semis) seems to be the trend during COVID. We suspect lower interest rates and backyards being the most significant driver to those looking to make a move.

DETACHED HOUSES

1,102 sales took place

208 more homes than the previous month (23% increase in sales)

236 more homes than the last year (27% increase in sales)

The average price of a detached home was $1,541,000

An increase of $17,000 compared to the previous month (1% increase in price)

An increase of $314,000 compared to last year (25% increase in price)

SEMI-DETACHED HOUSES

372 sales took place

109 more homes than the previous month (44% increase in sales)

96 more than the last year (34% increase in sales)

The average price was $1,181,000

A decrease of $106,000 compared to the previous month (8% decrease in price)

An increase of $199,000 compared to last year (20% increase in price)

TOWNHOUSES

393 sales took place

29 more homes than the previous month (8% increase in sales)

65 more homes than the previous year (20% increase in sales)

The average price was $852,000

A decrease of $3,000 compared to the previous month (.3% decrease in price)

An increase of $96,000 compared to the previous year (12% increase in price)

CONDOS

1,689 sales took place

402 more condos than the previous month (31% increase in sales)

72 more condos than the previous year (4% increase in sales)

The average price was $682,999

An increase of $10,500 compared to the previous month (1.6% increase in price)

An increase of $55,000 compared to the previous year (8.8% increase in price)

TRENDS TO WATCH

  1. July saw a lot more activity in the condo market, however, prices continued to hold near levels seen in late 2019/early 2020. If you’re a buyer, this is a great time to be looking at condos as competition is way down.

  2. With most universities and colleges offering online classes only, and out of country students not returning for the September semester, we’ll be watching the impact this has on the already hampered rental market. 

  3. Semis and detached continue to be the most desirable styles of housing in this post COVID world. We’re not seeing this change any time soon!
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Monthly Market Updates

Toronto Real Estate Market Report – June 2020

I think the crystal ball is broken!?!

At the beginning of 2020, all predictions pointed towards a record-setting year. Then COVID happened, and opinions reversed. The lockdowns in April severely skewed the numbers and it wasn’t until the middle of May that we started to see a return to (a new) normal.

June took that momentum and shattered several records for the month! We recorded a historic high for average prices in the city at $930,000 – beating the 2017 record of $920,000. We also saw sales double in June (compared to the month prior) and on average saw properties sell 18% quicker than last month.

The highs continued for the Detached, Semi-Detached and Townhome markets, all recording record-breaking prices for the month. Semi’s and Townhomes hit all-time highs of $1,287,832 and $855,399 respectively.  In the detached market, we hit a new year high, and return to 2017 prices with an average price of $1,523,770.

Condos didn’t fare as well as the other housing segments. We did see a 77% increase in sales for condos in June, but the average price was nearly identical to May with an average price of $672,000 – which takes us back to the numbers we were seeing at the start of the year.

It’s important to remember, we’re still very much in the midst of a global pandemic. One promising month in June does mean the worse is behind us. I think a lot of the growth we saw last month can be attributed to the lack of activity we saw in months prior. I’m most curious to see what the employment landscape looks like in the Fall, and how business can adapt in months ahead.

DETACHED HOUSES

  • 894 sales took place
  • 462 more homes than the previous month (107% increase in sales)
  • 101 fewer homes than the previous year (10% decline in sales)
  • The average price of a detached home was $1,523,770
  • An increase of $101,497 compared to the previous month (7% increase in price)
  • An increase of $191,131 compared to the previous year (14% increase in price)

SEMI-DETACHED HOUSES

  • 263 sales took place
  • 99 more homes than the previous month (60% increase in sales)
  • 70 fewer homes than the previous year (21% decline in sales)

  • The average price was $1,287,832
  • An increase of $144,510 compared to the previous month (12% increase in price)
  • An increase of $232,409 compared to the previous year (22% increase in price)

TOWNHOUSES

  • 364 sales took place
  • 200 more homes than the previous month (121% increase in sales)
  • 8 more homes than the previous year (2% increase in sales)
  • The average price was $855,339
  • An increase of $60,713 compared to the previous month (7% increase in price)
  • An increase of $45,300 compared to the previous year (5% increase in price)

CONDOS

  • 1,287 sales took place
  • 560 more condos than the previous month (77% increase in sales)
  • 210 fewer condos than the previous year (14% decline in sales)
  • The average price was $672,465
  • A decrease of $1,563 compared to the previous month (.23% decrease in price)
  • An increase of $35,859 compared to the previous year (5% increase in price)

TRENDS TO WATCH

  1. Condo prices are starting to level off. I’ve been seeing less bidding wars for them and more supply in the market. We’ll be watching to see what happens to values in July and if they continue to remain the same.

  2. Rents continue to plummet, especially in the condo market. Long gone are the days of multiple offers for rentals. As many AirBnB owners shift to the longer-term market, supply has dramatically increased pushing prices down.

  3. Were the record-setting prices a result of pent-up of demand? Will prices cool off in the traditionally slow summer months? With fewer people travelling, it’ll be interesting to see the impact this has on the Real Estate Market in Toronto.
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Monthly Market Updates

Toronto Real Estate Market Report – May 2020

May traditionally marks the busiest month for real estate in Toronto… this year – not so much. Self-isolation,  social distancing, and the overall uncertainty of the future reduced much of the activity we typically see in May. However, activity did start to pick up towards the end of the month!

April marked the first month of full lockdown, and really set the benchmark for comparison purposes. It’s important to distinguish market activity with pre and post COVID-19 numbers to get an accurate pulse of where the market is heading.

In May – sales, listings, active listings and prices posted much higher numbers than in April. Sales and new listings doubled (over 50%), month over month, and the average price increased to $863,000 (an increase of more than 5%). Speaking from my own experience, I also witnessed a huge uptick in emails, calls and showings on my listings. 

Because context is important, now more than ever, it has to be said that May typically records the highest numbers of the year… but not so in 2020. 

On a year-over-year (YOY) basis: sales were down by over 75% and new listings by 54%. We also saw a 68% increase in days properties sat on the market – a clear indication of a much cooler May. Prices did see a small gain of nearly 3% compared to May 2019, but still much less than the double-digit appreciation we saw in Q1 (January, February and March) of this year!

Detatched Houses

  • 432 sales took place during the month of May
  • 119 more homes than the previous month (38% increase in sales)
  • 748 fewer homes than the previous year (63% decline in sales)

  • The average price of a detached home was $1,422,273
  • Up $172,543 compared to the previous month (13% increase in price)
  • Up $37,280 compared to the previous year (2.7% increase in price)

Semi Detached Houses

  • 164 sales took place during the month of May
  • 38 more homes than the previous month (30% increase in sales)
  • 244 fewer homes than the previous year (59% decline in sales)

  • The average price of a Semi-Detached home was $1,143,322
  • Up $46,000 compared to the previous month (4% increase in price)
  • Up $92,790 compared to the previous year (8% increase)

Town Houses

  • 164 sales took place during the month of May
  • 56 more homes than the previous month (51% increase in sales)
  • 202 fewer homes than the previous year (55% decline in sales)

  • The average price of a Town House was $794,626
  • Up $9,727 compared to the previous month (1% increase in price)
  • Down $1,463 compared to the previous year (0.18% decrease in price)

Condos

  • 727 sales took place during the month of May
  • 245 more sales than the previous month (50% increase in sales)
  • 1,102 fewer condos than the previous year (58% decline in sales)

  • The average price of a Condo was $674,028
  • Up $61,728 compared to the previous month (10% increase in price)
  • Up $31,137 compared to the previous year (4% increase in price)

TRENDS TO WATCH

  1. In April, the Government put a ban on short-term rental services (think AirBnB). As a result, we saw a lot more rental units come to market in the condo sector.  With an oversupply of available units, we saw rent prices come down significantly. The government has lifted its short-term restriction, so we’ll see the impact this may have on the supply of condo rentals.
  2. Canada Mortgage and Housing Corporation (CMHC) is in the process of announcing stricter lending criteria for anyone purchasing with less than 20% down. This could create a mini push for buyers into the market before the new rules take effect.
  3. Bidding wars are back. I’ve seen several houses sell way over asking (and market value) in the last few weeks. Much of this can probably be attributed to the pent up demand from months prior – curious to see if this continues into the traditionally quieter summer months!
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Monthly Market Updates

How Did the Toronto Real Estate Market Perform in 2018?

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