Real Estate Recap: 2015, The Year of The House, by Michael Loewith
As our city prepares for another busy season in real estate, the increase in property sales and average home prices point to the positive evolution of Toronto’s housing market. There are many pieces that put together the puzzle of our city’s real estate market. In this past year we have noticed a few factors that have propelled Toronto’s communities forward in terms of value: limited inventory, high demand (partially due to relatively low mortgage interest rates), and a much higher quality home.
City dwellers have become increasingly sophisticated when it comes to real estate. We know it’s more financially beneficial to own as opposed to renting, we know when to say no so as not to bite off more than we can chew, and we have access to information which we are using, constantly, to our benefit. This year’s market had something for everyone; buyers had very favourable interest rates, sellers had competition over their listings, and us agents got to work with clients and professionals who understand the market, understand what needs to be done to sell a house, and are willing and eager to invest time, money, and effort in order to buy with intelligence and sell with transparency and accountability.
During the busy spring months of March-April-May the GTA saw an increase of 9.5% from 2014 in the amount of houses sold. C02 and C03 saw an increase of 12% and 18% respectively. In addition to the increase in units sold, we also saw an increase in the average sale price and the average list price vs. sale price differential. The average detached house in C02 sold for $1,828,155 while the average detached house in C03 sold for $1,626,746. These increases in prices not only benefit the seller, but they also represent a shift in the market in terms of the product we are seeing.
The sellers that we’ve had the opportunity to work with this year have put their money in the right places. Making smart choices when it comes to investing in the sale of their home; small and effective improvements to freshen and better clarify their spaces to help appeal to an everyman market. Sellers are working with qualified professionals and high-quality materials leading to a better product, and the confidence to have full disclosure and clarity when they’re ready to sell.
As for our buyers, we’re equally lucky to have worked with families who are active and engaged in not only the purchase of their house but in forming the future communities of our city. The buyers we’ve seen this year have arrived at the table with confident buying power—money is cheap and real estate is as much a financial investment as it is an investment in your family and community’s future. Buyers are interested in neighborhoods that have something to offer; they want flair, connections with their neighbours, and local businesses they can feel proud to support. 2015 buyers have shown a clear understanding that although the prices of houses are increasing, so is the value of the home they are buying and the community they are building.
Michael Loewith is a Realtor and active supporter of the St. Clair West community for well over 15 years. www.loewithgreenberg.com