This is what the Toronto real estate market feels like right now.
The average sale price up up 8.9% over October 2013 and transactions were up 7.7% compared to this time last year.
That being said, there is no other way to say it…inventory is brutal right now. We have a plenty of buyers ready to put pen to paper but there is so little available that we are literally knocking on doors to find people willing to sell their home!
We know every real estate agent out there says this but really and truly, if you’re thinking of selling, let us know so we can connect you with our buyers.
Why is inventory so low? We know a lot of homeowners who would like to move but simply can’t justify the cost of the City of Toronto land transfer tax. According to the Toronto Real Estate Board, over 38,000 real estate transactions have been held back since 2008 due to the tax.
At first blush, the tax looks like a great source of revenue for the city. The city was $357 million dollars richer in 2013 to be exact. According to an article by the Business News Network however, “Since the tax was introduced in 2008, data from TREB collected shows a $2.3 billion decrease in economic activity. That has resulted in a GDP reduction of $1.2 billion, the loss of some 15,000 jobs, and $772 million in lost wages and salaries.”
Here is the latest data from October…
In the 416 Area:
Average price: $951,746
Year over year price increase: 8.7%
Average price: $678,937
Year over year price increase: 5.4%
In the Beach (E02):
Average price: $946,103
Average days on market: 16
Sale price to list price: 100%
Average price: $673,898
Average days on market: 11
Sale price to list price: 103%
Here is the October 2014 summary from the Toronto Real Estate Board… –
Click here for the full Market Watch
October 2014 Sales & Average Price Up Year-Over-Year
November 5, 2014 — Toronto REAL ESTATE Board President Paul Etherington announced that Greater Toronto Area REALTORS® reported 8,552 sales through the TorontoMLS system in October 2014. This result represented an increase of 7.7 per cent compared to October 2013. New listings were also up on a year-over-year basis, but by a lesser 3.4 per cent.
“Strong growth in sales was evident across all major home types during the first full month of fall. This suggests that there are a lot of households across the Greater Toronto Area who remain upbeat about the benefits of home ownership over the long term, whether we’re talking about first-time buyers or existing HOME OWNERS looking to change their housing situation,” said Mr. Etherington.
The average selling price for October 2014 transactions was $587,505 – up 8.9 per cent compared to the average of $539,286 reported for October 2013. The MLS® HPI composite benchmark price was up by 8.3 per cent over the same period. Low-rise home types, including singles, semis and town houses, continued to be the DRIVER of year-over-year growth in the average price and the MLS® HPI composite benchmark.
“While sales growth has tracked strongly so far this fall, many would-be HOME BUYERS have continued to have difficulties finding a home due to the constrained supply of listings in some parts of the Greater Toronto Area, particularly where low-rise home types are concerned. The resulting sellers’ market conditions are forecast to drive strong price growth through the remainder of 2014 and indeed into 2015 as well,” said Jason Mercer, TREB’s Director of Market Analysis.