2006 at a glance…
In the City of Toronto, 34,404 sales were recorded while the resale market was at its most active, up one percent over 2005. The average price rose five percent from $335,907 to $351,941.
What does this mean for you?
If you’re waiting to get into the market until the economy slows down and prices drop then you’ll be waiting quite a while, not to mention losing valuable equity and growth in your property value in the meantime.
If you own real estate, congratulations – you are most likely benefiting from the average 5% increase in value in your home.
For years now many people have been saying the market was going to slow down. In general terms, this could be the case. But for a growing city whose real estate is undervalued, values keep increasing.
Here is a snapshot of the average cost of a home in North American cities in 2006:
NOTES: Median sale price for 2,200 sq. ft. residence in low-crime neighbourhood. Specifics: 3+ bedroom, 2½+ bath, attached 2-car garage, 2,200 square foot (190 square metre) residence, on at least a 6,500 square foot (604 square metre) lot.
Los Angeles $1,187,500
New York $1,599,300
San Francisco $1,635,200
Source: Economic Research Institute, The Geographic Reference Report 2006
Toronto, compared to other major metropolitan cities and financial centres, is significantly undervalued and affordable. This trend continues if you look at other major cities throughout the world.
Like any economy, there will be valleys and peaks. But historical value increases show that in the long term, it is still better to be in the market than out:
Year – Average Price of Single Family Home
1975 – $57,581
1980 – $75,694
1985 – $109,094
1990 – $255,020
1995 – $203,028
2000 – $243,255
2005 – $335,907
2006 – $351,941
Source: Toronto Real Estate Board MarketWatch – December 2006
What is in store for 2007?
The year ahead should prove to be a busy on if steady activity and value increases of five percent from 2005 to 2006 continue.
TREB president Dorothy Mason states, “This means that prices continue to outpace inflation, making home-ownership a sound investment in today’s economy and invariably in the long term.”
If you know anyone who is not currently in the market, I hope you’ll share this information with them.
Best wishes for a happy and successful 2007!
Don’t forget to check out the blog below, “What’s Hot and What’s Not in Homes for 2007!”
Check out the following areas to see average prices from December 2006 in your neighbourhood.
E02 -The Beach
(coxwell, danforth, victoria park)
E03 – Danforth (north)
(DVP, victoria park, danforth)
E01 – Danforth (south) Riverdale
(DVP, danforth, coxwell)
Days on market: 17
% of list: 101%
C04 – Bedford West & Lytton Park
(allen, 401, yonge, eglinton)
C09 – Rosedale (yonge, st.clair, bayview, bloor)
Days on market: 31
% of list: 97%
C03 – Forest Hill
(allen, eglinton, yonge, st.clair)
C12- Lawrence Park/Bedford East
(yonge, 401, leslie, eglinton)
Source: Toronto Real Estate Board December 2006 MarketWatch – for the full report, click here.