Toronto Real Estate Market – May 2015
Although we are seeing an increase in new listings and the available inventory for buyers, there is still such a backlog of buyers that it just isn’t enough…there are still crazy bidding wars and record sales driving the average home price up 11% over this time last year.
Many potential sellers are of course nervous about selling before they buy – this is creating a catch-22 for inventory. So what strategies can you use to solve this?
We suggest selling but with a very long close date. This will give you an opportunity to find your next home and you’ll also have the confidence to shop knowing what you have to ‘play with’ in terms of what your home sold for. This will also allow you to take advantage of seasonality…selling at the market peak and buying during the quieter summer months when there isn’t so much competition from other buyer.
We also work closely with our buyers to find properties off-market. It is not uncommon to see our team driving around with clients picking specific homes that they would be interested in.
If you ever get a call or letter from the Mark Richards Team saying they have a client interested in your home, this is not a marketing ploy that has unfortunately been abused by others in our industry. This is a very serious inquiry from qualified buyers who are ready to put in an offer if your home works for them.
All of these market conditions and a hesitant weather pattern is pushing our busy season a bit later this year. Typically we would see May as our busiest month for staging and preparing listings but June is proving to be the busiest so far!
If you have considered selling this season, there is still time to take advantage of the market and determine strong plan for your next move. Call us at 416 699 9292 or firstname.lastname@example.org anytime.
With home prices up 11%, what is your home worth today? Click here to find out!
A New Sales Record for the Month of May
June 3, 2015 — Toronto Real Estate Board President Paul Etherington announced 11,706 sales reported by Greater Toronto REALTORS® in May 2015. This result was up by 6.3 per cent in comparison to 11,013 sales reported in May 2014. For the TREB market area as a whole, sales were up for all major housing types. However, in the City of Toronto, where the supply of low-rise listings has been constrained, sales were down for detached homes.
“During my tenure as TREB President over the past year, it is clear to me that ownership housing remains top of mind as a quality long-term investment for GTA households. This is why, despite a shortage of listings in some market segments, we experienced a record number of sales reported through TREB’s MLS® System for the month of May,” said Mr. Etherington.
Record May transactions, coupled with a dip in the number of homes available for sale, resulted in strong price growth. The MLS® Home Price Index (HPI) Composite Benchmark was up by 8.9 per cent year over year in May. The MLS® HPI uses benchmark homes to estimate price growth. This allows for an “apples to apples” comparison of price growth that is not affected by changes in the mix of sales activity.
The average selling price for all home types combined in May 2015 was up by 11 per cent annually to $649,599. The higher annual rate of average price growth compared to the MLS® HPI Composite Benchmark points to the fact that the proportion of high-end home sales continued to be greater compared to 2014.
“Tight market conditions, especially for singles, semis and town homes in the GTA, have resulted in strong price growth regardless of the price metric being considered. With no relief so far on the listings front, expect similar rates of price growth as we move through the remainder of 2015. At this point, a number of months where listings growth outstrips sales growth would be required to satisfy pent-up demand,” said Jason Mercer, TREB’s Director of Market Analysis.