Toronto Real Estate Market Update – November 2015

Two more market records were broken by the performance of the Toronto resale market in November. The first was the sales results for the month of November. Toronto area realtors were responsible for 7,385 property sales in November. This result represents the highest number of reported sales ever achieved for the month. By comparison only 6,476 sales were reported in November 2015, an increase of more than 14 per cent. This is an incredible achievement at a time normally associated with the beginning of the holiday season when buyers in particular are focused on matters other than real estate.

Secondly, and perhaps more importantly, by month end the Toronto Real Estate Board had reported 96,401 residential resales for 2015. This number shattered the previous annual record of 93,193 sales achieved back in 2007, with one more month to go before the greater Toronto’s sales totals are finally calculated. Last December there were 4,418 reported sales. If this December’s results are equal to last year’s, and the anticipation is that they will be higher, 2015 will close out with almost 101,000 sales. This would be a 5 per cent increase over the record year of 2007.

The growth in sales can be attributed to the increase in condominium apartment sales since 2007. Over the past eight years numerous condominium projects have reached the registration stage, and consequently have become available for resale. In November there were 1,198 detached and semi-detached properties reported sold in Toronto’s 416 districts. In the same month 1,351 condominium apartments were reported sold, almost 13 per cent more than the total amount of free-hold properties sold.

The average sale price for condominium apartments was $415,316, much lower than the average sale price for detached and semi-detached properties. In November the average price for a detached house in Toronto came in at $1,018,621. Semi-detached properties came in at $750,608. It is clear that for many buyers the only affordable alternatives are condominium apartments.The average sale price for all properties sold in the greater Toronto area was $632,685, almost 10 per cent higher than the $577,502 achieved in November 2014. The average sale price for 416 area sales came in at $654,221, about 4 per cent higher than the broader greater Toronto area market.

The number of listings coming to market has been increasing over the last few months, but still insufficiently to meet demand. In November 9,609 new properties came to market, a 10.2 per cent increase compared to the 8,716 properties that came to market last year. Notwithstanding this increase, at month end the Toronto market was still almost 9 per cent short of the number of listings it had in 2014. Last year there were 14,717 active listings at the end of November. This year we enter December with only 13,454 active listings.

In November 130 properties were reported sold having a sales price of $2 Million or more, a very healthy number for November. Aside from the high end market, as we near the end of the year the concern remains that Toronto’s average sale prices have reached levels that might not be sustainable. The historically and exceptionally low mortgage interest rates have been the primary reason for the record breaking sales that have taken place throughout this year. Fortunately there is no immediate risk of rates rising. The Canadian economy continues to be sluggish, particularly in Western Canada were less than $40 a barrel oil prices have crippled real estate sales. If average sale prices continue to rise at their recent double digit pace, any increase in mortgage interest rates will see sales stall and prices level off. Continued rising inventory levels will help ease this potentially dangerous situation from developing.

Toronto Real Estate Market Update – September 2015

During a year in which numerous records have been established by the performance of the greater Toronto residential resale market, it is not surprising to discover that a new record was set in September. The 8,200 properties reported sold was a record number for properties sold for any September since the Toronto Real Estate Board has been maintaining statistics. September was just another month in a string of months in which Toronto area buyers remained determined either to buy for the first time or move up to a more expensive property. As a result, the cumulative total of reported property sales for the first 9 months of 2015 is 80,331. The record for sales, set in 2007 at 93,193, when the average sale price was only $376,236, is on the verge of falling.
If there is a concern with the Toronto resale market place it is available inventory. Notwithstanding that September was a record breaking month, the positive variance of reported sales as compared to September 2014 was only 2.5 percent, the lowest positive monthly variance in almost two years. There is simply not enough freehold, detached and semi-detached supply, to meet the constant demand for housing in Toronto.
It is the lack of supply that is primarily responsible for the constantly increasing price of housing in Toronto. It now costs more than $1 Million to buy the average detached home. In Toronto’s central districts the average price of a detached house is now almost $1.7 Million. There are districts in the west (Kingsway) and districts in the east (Riverdale and the Beach) where the average sale price for a detached house is also $1 Million or more.
Overall the average sale price for the greater Toronto area came in at $627,395, 9.2 percent higher than last September’s average sale price of $574,424. Toronto’s average sale price has practically doubled in the last 10 years. In 2005 the average sale price was a mere $335,907. No doubt these constantly rising prices have been motivating buyers to get into the market and become homeowners. That and the historically low interest rates.
Aside from rising prices, the market has changed in other ways since 2005. In September 2005 the market reported 7,326 property sales. At the time that was a record, as September 2015’s 8,200 sales established a new record. In 2005 it took almost 40 days for all properties to sell. This September the average days on the market was only 22, and that number was made higher by the large number of condominium apartments included in that statistic. In the last decade the manner in which buyers purchase properties has clearly changed. The slow, deliberate process no longer exists. Today buyers are more educated, by their realtors and by information in the public domain (realtor.ca). They now know what they want, and when it becomes available, offers are submitted, which often result in multiple and pre-emptive offers. In some districts the average days on market can be calculated in single digits.
The other major change between 2005 and today is the price that buyers will pay for properties on the market. There were few instances where buyers paid asking or slightly higher in 2005, and when they did it was not with the consistency in the overall market that we witness today. In September all detached properties across the entire greater Toronto area sold for 100 percent of their asking price. In the city of Toronto it was 101 percent. All semi-detached properties sold for 102 percent of their asking prices. In the city of Toronto it was an eye-popping 105 percent, 107 percent in the eastern districts and 106 percent in the central districts, where the average sale price for a semidetached property came in at almost $1 Million.
Sales of properties were not restricted to the lower end of the market. There were 903 properties reported sold having a sale price in excess of $1 Million, 154 having a sale price of $2 Million or more. In September there were 32 properties reported sold having a sale price in excess of $3 Million, 28 percent more than the 25 properties sold in this category in September 2014. It would appear that the high end of real estate sales in Toronto now begins at $3 Million.
Going forward the concern is the shortage of inventory and the impact it will have on prices and ultimately on affordability. At the end of September there were 16,165 properties available for sale, 7.3 percent less than the 17,765 that were available at the same time last year. That translates into only 1.9 months of inventory in the greater Toronto area, and 2.2 months of inventory in the city of Toronto, the higher level of available inventory due primarily to the high concentration of condominium apartments. This shortage of inventory will continue to generate competition for detached and semi-detached properties that become available for sale, and sale prices will continue to escalate. Given the demand in Toronto, the only thing that will prevent October’s numbers from reaching new records is the lack of available properties for sale.

Toronto Real Estate Market Update – June 2015

Once again the Toronto residential resale market posted new records for market performance. The first was the 11,992 properties reported sold, the highest number of properties reported sold for the month of June since the Toronto Real Estate Board began tracking Toronto area sales. June’s reported sales were 18.4 percent greater than the 10,132 properties reported sold in June 2014.

There is no doubt that historically low mortgage interest rates continue to be the driver of Toronto’s residential resale market place. Low interest rates and tight inventories, particularly in the City of Toronto have been responsible for many of the records that have been established in 2015.

Despite the high volume of sales in June, a new record for the monthly average sale price was not established. The average sale price came in at $639,184. Although this monthly average sale price was more than 12 percent higher than the average sale price for June 2014, it did not exceed May’s average sale price of $ 649,800, which remains the record for the greater Toronto area. The average sale price for the City of Toronto came in at $682,264, almost 7 percent higher than the average sale price for the greater Toronto area. This number would have been substantially higher if it did not include the numerous condominium apartment sales which form the bulk of properties sold in the City of Toronto. Condominium apartments (see below) are selling at prices 38 percent lower than the average sale price for all properties sold in the City of Toronto.

In June all properties (on average) sold in 19 days. Last year it took 22 days for all properties to be reported sold. Interestingly properties sold faster in May. In May it took only 18 days for all sales to take place. Nonetheless 19 days remains a blistering pace, especially when it is considered that these sales include 2,700 condominium apartments, which are selling at a less robust pace than freehold properties. As we have seen in previous months in 2015, the pace of sales varies depending on trading district and housing type. As has been the case all year, the eastern districts remain the most robust. In June all detached properties in the eastern districts sold in 11 days at sales prices averaging 104 percent of their asking prices. Semi-detached sales were even faster. All semi-detached properties in the eastern districts, and there were 189 of them, sold in an eye-popping 8 days and for sale prices averaging 106 percent of the asking prices. These are unprecedented numbers.

Although not as frothy, sales of detached and semi-detached homes in the City of Toronto’s central districts were also dramatic. In central Toronto the average price for a detached house came in at $1,664,694. For the City of Toronto the average price was $1,051,912, both numbers establishing new benchmarks for detached property sales. Not only were these average sale prices unprecedented, but sales took place in 19 and 16 days respectively, and for sale prices 101 and 102 percent of their asking prices. It is clear that notwithstanding the steep rise of prices for detached and semi-detached homes in the central districts, Toronto buyers have an insatiable appetite for these housing forms.

Condominium apartment sales established a record of their own. Condominium apartment sales were up an amazing 21.3 percent compared to June of 2014. In June 1,906 apartments were reported sold in the City of Toronto (416 area). These sales represented 43 percent of all sales in the City of Toronto for the month of June. Although the volume of sales was up dramatically, it was not matched by the increase in the average sale price. The average sale price for condominium apartments came in at $418,599, up 7 percent compared to June 2014, but is still considerably lower than average sale prices for freehold properties.

Although more condominium apartments are selling and at higher prices, they are not selling as fast as detached and semi-detached homes, nor are they selling for prices exceeding list prices. In June all condominium apartments in the City of Toronto sold in 27 days, 8 days slower than freehold properties. In addition all apartments sold for only 98 percent of their asking prices. As was mentioned earlier, inventory levels continue to be a problem for buyers. In June 17,746 new listing became available in the greater Toronto area. This was an increase of 6.7 percent compared to the 16,633 that became available in 2014. Notwithstanding this increase, entering July there are 13.1 percent fewer available properties for buyers to purchase than there were last year at this time. Last year there were 20,686 available properties, this year there are only 17,972. Translated into months of inventory we see that there are 2.0 months of inventory for the greater Toronto area and 2.2 months for the City of Toronto, The 5,208 condominium apartments for sale account for the slightly higher months of inventory in the city of Toronto. In both cases, however, 2.0 and 2.2 months of inventory reflect strong seller markets. Looking forward I anticipate a small pull back in the market in July. This is consistent with historical seasonal cycles. Last July the market retracted by about 10 percent compared to June. Expect a similar retraction when July’s numbers are reported. One thing is clear, the annual record for most reported sales is well on its way to being shattered in 2015.

Collingwood/Southern Georgian Bay Real Estate Market Update – June 2015

SOUTHERN GEORGIAN BAY HOME SALES SET NEW ALL TIME RECORD!

Residential sales recorded through the MLS® System of the Southern Georgian Bay Association of REALTORS® came in well above year-ago levels in June 2015.

The Southern Georgian Bay Association of REALTORS® comprises two distinctive markets. We are reporting on activity for the Western Region which includes Wasaga Beach, Collingwood, Clearview Township, The Blue Mountains, Municipality of Meaford and Grey Highlands.

The total number of sales for June 2015 is 275, up a strong 22% 2014 (225 sales). The total number of sales YTD is 1145 units, showing a 20% increase from 2014 (952 sales). The total sales dollar volume for June 2015 was $89,117,146 up 23% from 2014 ($72,196,799). The total sales dollar volume YTD was $384,477,410 up 27% from 2014 ($303,610,407). Dollar volumes reached new all-time records in June!

The average price of a residential home sold in the Western District was $323,467 in June. This was an increase of 1.2 per cent from a year earlier.

The number of new residential listings in June 2015 was 442 units, falling 9% per cent from a year earlier (485 for 2014). The total number of listings YTD is 2516, down by 14% from 2014 (2917).

As an overview …. Here are some interesting highlights from the recent CMHC Housing Market Outlook for Ontario for 2015/16, with regard to resale homes;

• Demand for resale homes will hold up better versus new construction demand over the forecast horizon.

• Modest wage growth and eroding affordability will support demand for less expensive resale homes.

• Demand for single detached homes will ease as mortgage carrying costs continue to rise.

• Ontario existing home sales could be closer to the higher end of range if employment grows faster than expected.

• Alternatively, sales could be closer to the lower end of the range should affordability erode faster than expected.

CMHC has this to say on Economic Forecasts for Ontario 2015/16;

• After a period of modest growth during the post-recession period, Ontario’s economy will gain momentum and outpace growth in the rest of Canada for 2015 and 2016.

In closing, as we enjoy a stable, low risk real estate environment, the Southern Georgian Bay communities are poised for a great summer! There is an abundance of special events, theatre, outdoor activities, festivals, farmer’s markets, hiking trails, beach visits and so much more to enjoy!

Prince Edward County Real Estate Market Update – June 2015

As we finally move into the warmer months and watch the picturesque landscape of Prince Edward County (“the County”) come to life with the fields, orchards and vineyards beginning to show signs of the bounty for which the area is renown, the Quinte & District Association of REALTORS® (“the Quinte Board”) has produced its statistics for the month of June, confirming that the real estate market in the County this year is playing out very much as it did last year at midpoint in the season, with remarkably consistent buying and selling behaviour as well as property listing and inventory trends. Generally speaking sales are proceeding at a pace that is both strong and steady, reflective of a solid and enduring market that is neither volatile nor fickle, but rather rooted in excellent and established fundamentals of value associated with the area.

Further to this, according to the Enhanced Statistics Statistical Query Report prepared by the Quinte Board for the month of June, 71 properties sold across the County, 2 more than last June when 69 properties were reported as sold, constituting a moderate 3% increase. As indicated year to date sales are closely mirroring those of last year at this point with 268 so far compared to 271 last year at the half way mark, a virtual dead heat. The Quinte Board generally, however, which covers a much broader area including Belleville, Brighton, Trenton, Madoc and Marmora amongst other centres continues to report more significant gains over last year’s numbers, reporting a 35% increase in sales Board wide with 448 reported sales this past June compared to 332 the year previous. Year to date numbers also reflect a substantial year over year increase of 20% with 1784 sales thus far compared to 1484 in the first half of 2014. The higher price point in the County may have something to do with this differential as well as the particular economic and demographic trends in the respective areas.

Continuing on with the overall story of stability, listings too are remarkably consistent with last year. According to the Enhanced Statistics prepared by the Quinte Board, 145 new listings came onto the market in the County in June, only one fewer than in June of last year. The year to date picture is no different with a grand total of 920 new properties being listed compared to 918 last year at this time. Not surprisingly then the inventory is virtually the same as it was last year at the end of June with 714 active listings on the market compared to 716 last year, truly a negligible difference. As for the Quinte Board generally, the June report indicated a 3% increase in listings over last year with 765 new properties coming out across the Board compared to 746 last year, with year to date figures reflecting a similar trend and a 4% gain (4423 as compared to 4258 in 2014).

The steady and solid performance of the real estate market in the County is further shored up by a 6% increase in average sale price across the region. In June, the average sale price of a property sold in the County was reported as being $261,556 compared to $245,707 the year previous.

Finally the particular cross-section of properties that sold across the County were sold on average in 97 days which based on this particular sampling is 40% longer than last year when calculations for the month of June established an average of 69 days on the market for properties before selling.

Overall, based on the performance of the property market in the County for the first half of the year, the remainder of the year is likely to play out in similar fashion with no indication of interest rate hikes anywhere on the horizon and general market conditions for the surrounding areas looking relatively stable. The main qualifier appears to be the broader economic climate with some significant ripples being experienced in international markets, particularly in Europe with the Greek monetary crisis, and in China’s equity markets. The extent to which all of this will affect the broader performance of the Canadian economy is still unclear. Global factors aside recent reports continue to show that Canada still has a way to go before its economy is back firing on all cylinders and trade figures are consistently more positive.

Toronto Real Estate Market Update – June 2015

Once again the Toronto residential resale market posted new records for market performance. The first was the 11,992 properties reported sold, the highest number of properties reported sold for the month of June since the Toronto Real Estate Board began tracking Toronto area sales. June’s reported sales were 18.4 percent greater than the 10,132 properties reported sold in June 2014.

There is no doubt that historically low mortgage interest rates continue to be the driver of Toronto’s residential resale market place. Low interest rates and tight inventories, particularly in the City of Toronto have been responsible for many of the records that have been established in 2015.

Despite the high volume of sales in June, a new record for the monthly average sale price was not established. The average sale price came in at $639,184. Although this monthly average sale price was more than 12 percent higher than the average sale price for June 2014, it did not exceed May’s average sale price of $ 649,800, which remains the record for the greater Toronto area. The average sale price for the City of Toronto came in at $682,264, almost 7 percent higher than the average sale price for the greater Toronto area. This number would have been substantially higher if it did not include the numerous condominium apartment sales which form the bulk of properties sold in the City of Toronto. Condominium apartments (see below) are selling at prices 38 percent lower than the average sale price for all properties sold in the City of Toronto.

In June all properties (on average) sold in 19 days. Last year it took 22 days for all properties to be reported sold. Interestingly properties sold faster in May. In May it took only 18 days for all sales to take place. Nonetheless 19 days remains a blistering pace, especially when it is considered that these sales include 2,700 condominium apartments, which are selling at a less robust pace than freehold properties. As we have seen in previous months in 2015, the pace of sales varies depending on trading district and housing type. As has been the case all year, the eastern districts remain the most robust. In June all detached properties in the eastern districts sold in 11 days at sales prices averaging 104 percent of their asking prices. Semi-detached sales were even faster. All semi-detached properties in the eastern districts, and there were 189 of them, sold in an eye-popping 8 days and for sale prices averaging 106 percent of the asking prices. These are unprecedented numbers.

Although not as frothy, sales of detached and semi-detached homes in the City of Toronto’s central districts were also dramatic. In central Toronto the average price for a detached house came in at $1,664,694. For the City of Toronto the average price was $1,051,912, both numbers establishing new benchmarks for detached property sales. Not only were these average sale prices unprecedented, but sales took place in 19 and 16 days respectively, and for sale prices 101 and 102 percent of their asking prices. It is clear that notwithstanding the steep rise of prices for detached and semi-detached homes in the central districts, Toronto buyers have an insatiable appetite for these housing forms.

Condominium apartment sales established a record of their own. Condominium apartment sales were up an amazing 21.3 percent compared to June of 2014. In June 1,906 apartments were reported sold in the City of Toronto (416 area). These sales represented 43 percent of all sales in the City of Toronto for the month of June. Although the volume of sales was up dramatically, it was not matched by the increase in the average sale price. The average sale price for condominium apartments came in at $418,599, up 7 percent compared to June 2014, but is still considerably lower than average sale prices for freehold properties.

Although more condominium apartments are selling and at higher prices, they are not selling as fast as detached and semi-detached homes, nor are they selling for prices exceeding list prices. In June all condominium apartments in the City of Toronto sold in 27 days, 8 days slower than freehold properties. In addition all apartments sold for only 98 percent of their asking prices. As was mentioned earlier, inventory levels continue to be a problem for buyers. In June 17,746 new listing became available in the greater Toronto area. This was an increase of 6.7 percent compared to the 16,633 that became available in 2014. Notwithstanding this increase, entering July there are 13.1 percent fewer available properties for buyers to purchase than there were last year at this time. Last year there were 20,686 available properties, this year there are only 17,972. Translated into months of inventory we see that there are 2.0 months of inventory for the greater Toronto area and 2.2 months for the City of Toronto, The 5,208 condominium apartments for sale account for the slightly higher months of inventory in the city of Toronto. In both cases, however, 2.0 and 2.2 months of inventory reflect strong seller markets. Looking forward I anticipate a small pull back in the market in July. This is consistent with historical seasonal cycles. Last July the market retracted by about 10 percent compared to June. Expect a similar retraction when July’s numbers are reported. One thing is clear, the annual record for most reported sales is well on its way to being shattered in 2015.

Report prepared by Chestnut Park’s CEO Chris Kapches

Prince Edward County Real Estate Market Report – June 2015

As we finally move into the warmer months and watch the picturesque landscape of Prince Edward County (“the County”) come to life with the fields, orchards and vineyards beginning to show signs of the bounty for which the area is renown, the Quinte & District Association of REALTORS® (“the Quinte Board”) has produced its statistics for the month of June, confirming that the real estate market in the County this year is playing out very much as it did last year at midpoint in the season, with remarkably consistent buying and selling behaviour as well as property listing and inventory trends. Generally speaking sales are proceeding at a pace that is both strong and steady, reflective of a solid and enduring market that is neither volatile nor fickle, but rather rooted in excellent and established fundamentals of value associated with the area.

Further to this, according to the Enhanced Statistics Statistical Query Report prepared by the Quinte Board for the month of June, 71 properties sold across the County, 2 more than last June when 69 properties were reported as sold, constituting a moderate 3% increase. As indicated year to date sales are closely mirroring those of last year at this point with 268 so far compared to 271 last year at the half way mark, a virtual dead heat. The Quinte Board generally, however, which covers a much broader area including Belleville, Brighton, Trenton, Madoc and Marmora amongst other centres continues to report more significant gains over last year’s numbers, reporting a 35% increase in sales Board wide with 448 reported sales this past June compared to 332 the year previous. Year to date numbers also reflect a substantial year over year increase of 20% with 1784 sales thus far compared to 1484 in the first half of 2014. The higher price point in the County may have something to do with this differential as well as the particular economic and demographic trends in the respective areas.

Continuing on with the overall story of stability, listings too are remarkably consistent with last year. According to the Enhanced Statistics prepared by the Quinte Board, 145 new listings came onto the market in the County in June, only one fewer than in June of last year. The year to date picture is no different with a grand total of 920 new properties being listed compared to 918 last year at this time. Not surprisingly then the inventory is virtually the same as it was last year at the end of June with 714 active listings on the market compared to 716 last year, truly a negligible difference. As for the Quinte Board generally, the June report indicated a 3% increase in listings over last year with 765 new properties coming out across the Board compared to 746 last year, with year to date figures reflecting a similar trend and a 4% gain (4423 as compared to 4258 in 2014).

The steady and solid performance of the real estate market in the County is further shored up by a 6% increase in average sale price across the region. In June, the average sale price of a property sold in the County was reported as being $261,556 compared to $245,707 the year previous.

Finally the particular cross-section of properties that sold across the County were sold on average in 97 days which based on this particular sampling is 40% longer than last year when calculations for the month of June established an average of 69 days on the market for properties before selling.

Overall, based on the performance of the property market in the County for the first half of the year, the remainder of the year is likely to play out in similar fashion with no indication of interest rate hikes anywhere on the horizon and general market conditions for the surrounding areas looking relatively stable. The main qualifier appears to be the broader economic climate with some significant ripples being experienced in international markets, particularly in Europe with the Greek monetary crisis, and in China’s equity markets. The extent to which all of this will affect the broader performance of the Canadian economy is still unclear. Global factors aside recent reports continue to show that Canada still has a way to go before its economy is back firing on all cylinders and trade figures are consistently more positive.

Prepared by: Richard Stewart, Vice-President & Legal Counsel, Chestnut Park Real Estate Limited, Brokerage

Toronto Real Estate Market Update – May 2015

The Toronto residential resale market posted new records for sales in May, as it has in previous months this year. Historically low mortgage interest rates, extremely low inventory levels, especially for detached and semi-detached properties, are the dominant drivers of the market. At the end of May there were 18,858 properties available for sale, more than 10 percent less than the 20,679 that were available at the end of May 2014. As of the date of preparation of this Market Update buyers can secure a 5 year fixed term mortgage with an interest rate of 2.54 percent, with even lesser rates available for shorter terms. With little likelihood that new listings will increase over the next few months, and mortgage rates holding firm with increases unlikely for the remainder of 2015, expect this market to remain a seller’s market for the foreseeable future.

In May 11,706 residential properties were reported sold for the greater Toronto area. This compares to 11,013 that were reported sold last year, a 6.3 percent increase, and a record month for the greater Toronto area. In April there was a 17 percent increase compared to April 2014. Although there was a pullback from the highs of April, the 11,706 properties sold in May is still very impressive, especially for a market place that has already produced over 30,000 sales in just the first four months of the year.

Last month I reported that the speed at which these properties were selling was unprecedented. In May sales took place at an even faster pace. All properties (on average) sold after only 18 days on market. In April all properties sold in 20 days. Last May all properties were reported sold in 21 days.

In some trading districts the pace of sales can only be described as blistering. For example all properties in the eastern trading districts sold in only 13 days. That represents 1,132 properties. It is difficult to find superlatives for this market. In Toronto’s central districts all detached properties, 490 of them, sold in just 13 days, and for an eye-popping average sale price of $1,731,998, and 102 percent of the asking price.

Sales of semi-detached homes in the central districts were even faster. All semi-detached properties sold in just 10 days at an average sale price of $966,948, and for prices that were 106 percent of their list price. Breathtaking results. In the eastern districts, because of lower price points and even fewer properties available for sale, sales for detached and semi-detached properties were even faster.

It will be of no surprise to anyone following these market statistics that average sale prices continue to rise. In May the greater Toronto area market place established a new record for monthly average sale prices, coming in at $649,599, and eclipsing the previous record of $635,899 which was only achieved in April. May’s average sale price of $649,599 was more than 11 percent higher than the average sale price of $584,946 that we saw in May 2014. Ironically, at that time, it was also a record average sale price for the greater Toronto area. The average sale price for homes in the City of Toronto (416 area) is even higher, coming in at $718,350. Currently Toronto’s least expensive area to live in is the eastern districts. The average sale priced there is only $584,567, but a buyer will have to go quite a ways east to find the average priced home. The eastern districts closer to the city’s central core are averaging over $800,000.  As I have indicated in previous reports, these numbers would be even higher if condominium apartment statistics are not included. As the market progresses we are seeing even condominium prices also increasing, and fairly dramatically.

In the City of Toronto, where most condominium apartments are located, condominium apartment sales increased by almost 13 percent compared to May of 2014. This 13 percent increase represented 1,762 sales, which in turn represents 42 percent of all sales that took place in Toronto. Not only were volumes up, but so were average prices. In May the average sale price for condominium apartments came in at $422,947. It was only a few months ago that the $400,000 threshold was exceeded. In Toronto’s central core the average price for a condominium apartment is rapidly approaching $500,000. In May the average sale price came in at $492,100.

It should be noted that notwithstanding rising volumes and sale prices for condominium apartments, the pace of sales, though improving, lags behind freehold sales. In May it took 27 days for all condominium apartments to sell in Toronto, 15 days slower than detached properties and an incredible 18 days longer than semi-detached properties. Unlike detached and semi-detached homes condominium apartments are not selling for more than their asking prices. In May condominium apartments on average sold for only 98 percent of their list price.

Properties selling with a sale price of $1 Million or more are now becoming the norm in Toronto. In May 1,412 properties having a sale price of $1 Million or more were reported sold. Million dollar plus property sales now represent more than 12 percent of the overall market place. It should be noted that 240 properties were reported sold having sale prices exceeding $2 Million.

New records are being created monthly. At this pace the record for the most sales in a year is very likely to be shattered. In 2007 93,193 properties were reported sold. At that time the average sale price was only $379,347, 73 percent less than it is today. Short of an economic catastrophe, 2015 will end with reported sales exceeding 100,000 properties.

Toronto Real Estate Market Update – April 2015

The Toronto residential resale market continues to strengthen as we move into the spring buying and selling season. Month after month the greater Toronto market reaches new milestones. All home types, including condominium apartments, saw both price growth and growth in the volume of properties sold.

In April 11,303 properties were reported sold in the greater Toronto area. This compares to only 9,660 sales in 2014, an increase of 17 percent. The increase of 17 percent is the highest year-over-year increase in sales on a monthly basis since before the 2008 recession. Although an increase of 17 percent pales in comparison to some of the recent increases experienced by the Vancouver market, by historical comparison a 17 percent increase is dramatic and unprecedented. For example, last month saw an increase of 10 percent compared to March 2014. That was the first double digit increase in years.

Not only did we see unprecedented sales volume, but all properties sold in record breaking time. All 11,303 properties reported sold (on average) sold in just 18 days. Last April, which was also a very fast sales month, all properties sold in 20 days. Certain housing types in various Toronto trading areas sold even faster. All detached properties in Toronto’s central core sold in just 15 days. They sold for 103 percent of their asking price. The average sale price for these properties? A record $1,591,721. Although prices were dramatically lower in the eastern trading areas, all detached homes in these districts sold in just 11 days at 105 percent of their asking price. The average sale price of these eastern district homes was $746,110, a record price, almost 16 percent more than what detached homes in the eastern districts sold for last year.

Given the high volume of sales and the speed with which they took place it is not surprising to see that the average sale price for all properties sold in the greater Toronto area also set a new monthly record. The average sale price for all properties sold came in at $635,932, a 10 percent increase compared to April 2014’s average sale price of $578,354. April marks the third consecutive month establishing a new record high for average sale prices in the greater Toronto area.

In the city of Toronto the average sale price was even higher. It came in at $690,261. This is a remarkable number when one considers that it includes the 1,706 condominium apartments that were reported sold. If condominium apartment sales are removed, the combined average sale price for detached and semi-detached homes in Toronto would be about $900,000, and dramatically more in some of the more sought-after neighborhoods.

The continually rising average sale price for Toronto properties is redefining the meaning of “luxury”. In April 1275 properties having a sale price that exceeded $1 Million were sold, another record. That represents a 54 percent increase compared to the 828 that sold in the same category last year. There were 195 properties sold that had an average sale price of more than $2 Million. Last year only 135 sold in this category. The “high end” of the market continues to grow every month. In April the 1275 reported sales over $1 Million represent more than 11 percent of the overall market. It is humourous to note that in the midst of these high end sales there were 6 properties that sold having a sale price less than $100,000.

Inventory levels continue to be a problem, contributing to rising prices and the pace of sales. In April 17,248 new properties came to market. Unfortunately this was 5 percent less than the 18,177 that became available to buyers in 2014. The cumulative effect of the monthly shortages is that the Toronto market enters May with only 17,182 properties available for sale, more than 10 percent fewer than the 19,118 that were available to buyers last year. These inventory shortages account for the growing phenomenon of multiple buyers bidding for the same property. This auction-like environment also contributes to the rapidly rising average sale price for properties in Toronto.

For first-time buyers condominium apartments are their only housing refuge, and the numbers indicated that that’s where first time buyers are flocking. In April 1,706 condominium apartments were reported sold, an increase of almost 14 percent compared to last year. These sales represented more than 22 percent of all reported sales. In the city of Toronto condominium apartment sales represented 42 percent of all reported sales.

Prices of condominium apartments are beginning to creep up. For the first time, the average sale price for condominium apartment sales in the city of Toronto exceeded $400,000 ($407,612). In central Toronto, where most apartment sales take place, the average sale price came in at $465,143, another record. Without the financial help of parents, even condominium apartments would be beyond the reach of many first-time buyers.

As we move into May we are firmly on pace to break the 2007 record of 93,193 sales for the entire year. With 30,854 sales already reported in the first four months of 2015, we can anticipate yearend sales exceeding 100,000 properties.

Collingwood/Southern Georgian Bar Real Estate Market Update – April 2015

As a REALTOR® it is to be expected that when you are out and about in the community and engaged in conversation whether it be at a local coffee shop, the grocery store, arena or golf course that at some point someone will say “How’s the market?” Quite simply put when asked about the month of April and the first four months of 2015 collectively it is hard not to reply with simple words like solid, robust and even hot. Especially, when these simple words are backed up with statistical evidence.

For the fourth consecutive month the real estate statistics as reported by the Southern Georgian Bay Association of REALTORS® (SGBAR) are strong. In several statistical categories the April figures for 2015 far outpace those reported a year ago both for the month of April and Year-To-Date (YTD) for 2014. In other categories April’s figures for this year are more in line with those reported at the end of May 2014 versus April 2014 giving further statistical merit to the strength of market year-to-date figures and the potential that 2015 could be a record breaking year statistically as it relates to real estate in the Southern Georgian Bay marketplace and more specifically the Western Region* if sales continue at the current pace.

As reported by SGBAR, sales for the Western Region for the month of April 2015 totalled 214 units, representing an 18% increase over the 182 unit sales reported for April 2014. YTD the total sales for the same region were reported at 631 units. This represented a 26% increase over the 502 unit sales reported for the first four months of 2014. This is further illustrated when the sales figures are broken out by price point for the Western Region.

The above chart clearly highlights two points. One, reasonable distribution of sales across all price points and secondly, positive percentage increases across all six price points including double digit percentage increases for five of the six price points.

The above statistics reflect price ranges across the region as a whole for all sales categories (residential, commercial, farm, vacant land etc.). However, in keeping with past reports the same positive picture is portrayed when we isolate the YTD single-family sales (from total sales) by sub-district within the Western Region. Specifically, the Town of Collingwood (22.5%), Clearview Township (25%), The Blue Mountains (25%) and the Town of Wasaga Beach (43.4%) all reported double-digit percentage increases for the total number of sales for the first four months of 2015 as compared to the same time period a year ago and both Grey Highlands and the Municipality of Meaford demonstrated modest growth with single digit growth at 9.5% and 2.7% respectfully. In addition, within these same six sub-districts each reported a positive percentage increase in the 12 month average sale price YTD. Grey Highlands leads the way with the largest YTD change over the same time last year with a 24.1% jump from $373,079.00 to $463,042.00. Of these six sub-districts The Blue Mountains has the highest 12 month average price at $577,327.00 up 3.8% from $556,131.00 for the same time a year ago. Again, all positive numbers across the board.

Although the above figures are impressive and together paint a positive picture as it relates to the market, the statistical numbers that jumped off the page this month were Total Sales Dollar Volume (TSDV) for the Month and YTD. As illustrated below the percentage increases for TSDV for the Month and YTD were impressive in their own right. However, what is more impressive is that the TSDV for the month of April ($72,094,774.00) is almost in line with the TSDV ($74,531,527.00) for the month of May 2014. Historically, the month of May and June have outpaced the month of April giving further statistical evidence that the spring market ahead is going to be even stronger than last year’s if current conditions persist.

Last month, we reported that March was the first month of 2015 to see an increase in new listings as compared to the same month a year earlier. April however, fell back in line with January and February of this year as we witnessed once again a decline in new listings as compared to the same month one year earlier. For the month of April 2015 there were 489 new listings a decline of 109 or -18% from the 598 new listings reported of the April 2014. YTD new listings for 2015 continue to lag behind those reported in 2014. For 2015 YTD there were a total of 1527 new listings down 248 listings or -14% from April 2014’s YTD reported number of 1775. Further the 1527 new listings reported YTD for 2015 are off by -21% as compared to the 1925 new listings reported YTD at the end of the first four months of 2013. At the end of April 2015 there were a total of 2489 active listings in the MLS® system for the Western Region up by 213 from the 2276 active listings reported at the end of March 2015.

Finally, when reviewing the Performance Record for the Western Region as provided by SGBAR, monthly sales to listings for April 2015 as a percentage was 43.76% as compared to 30.43% for April 2014. YTD the sales to listings ratio for 2015 was 41.32% compared to 28.28% for the same

time period in 2014. In previous months we have discussed and elaborated on the tightening of the market with a year over year decline in listings and year over year increase in sales. Perhaps no other statistic best demonstrates this point than this month’s YTD sales to listings ratio which at 41.32% handily surpasses the highest YTD ratio reported for 2014, which was in December at 36.89%.

As a postscript, Chestnut Park Real Estate Limited, Brokerage (“Chestnut Park”) is pleased to announce two milestones. First Chestnut Park has joined the REALTORS® Association Grey Bruce Owen Sound as a firm member and looks forward to serving the Grey Bruce marketplace. In addition, 2015 marks Chestnut Park’s 25th anniversary of service excellence within the real estate industry. Here’s to many more!

Prepared by: Keith Hull, Broker and Office Manager, Collingwood/Southern Georgian Bay & Richard Stewart, Vice-President & Legal Counsel at Chestnut Park Real Estate Limited, Brokerage