Lawrence Park, Rosedale and North Toronto Real Estate Report December, 2015
2015 has been a record year for real estate sales in Toronto, surpassing the previous “peak” year of 2007. Demand continues to be greater than supply, driving up the year-over-year average price for a house or condominium by nearly 10%. More new listings were placed on the market than in 2014, but the number of homes and condos now available for sale has shrunk by over 8%, as compared with the same time last year. With the average number of days on market at less than one month, it’s not an exaggeration to say that homes in Toronto are flying off the shelves.
In an effort to cool both the Toronto and Vancouver real estate markets, Canada’s Finance Minister Bill Morneau recently announced an increase in the minimum down payment required by the Canadian Mortgage and Housing Corporation for mortgages insured by CMHC. Starting February 15, 2016, the CMHC will require a 10% deposit on the mortgage portion of a property purchase of more than $500,000 and less than $1,000,000. The minimum down payment for properties priced up to $500,000 will remain at 5%. This change in the rules will primarily affect Buyers of properties priced between the half-million and million mark.
In Lawrence Park, the average price of a detached house was $1.7 million. The sales-to-listing price ratio was 101.4%, indicating competition among Buyers. Houses in this area took only 16 days to sell. Condominiums in the same neighbourhood offered Buyers a slightly cooler market with an average price of $523,589. Their sales-to-listing ratio was 98.5%, and they took roughly 30 days to sell.
Buying a detached home in Rosedale cost Buyers an average of $2.5 million in 2015. The sales-to-listing ratio was 99.2%. The average number of days on market was a brisk 22. For Rosedale condo buyers, the average sticker price was $798,555. The properties took an average of 23 days to sell.
In 2015, Sellers in North Toronto received an average $1.5 million for their detached houses. They received on average, 99.9% of their asking price and sold after 18 days-on-market. Condo buyers paid roughly $570,720 per unit – about 98.9% of the list price. The timeline here was more relaxed than the city’s average (just over a month at 34 days).
In a market as lively as 2015’s, Buyers can get discouraged and Sellers may inflate their expectations. If a move is not imminent for you, these conditions are academic. If however, you want to either buy or sell, focus on your goal and take the appropriate action:
Buyers ought to set financial boundaries in advance and be prepared to walk away if the bidding process starts to work against them. Remember that “Houses are like streetcars. There is always another one coming along.”
Sellers should endeavor to fix an asking price that represents their home’s true value. Pricing too low will invite unqualified Buyers to bid; pricing too high will alienate the Buyers best qualified to make a clean and uncomplicated offer.