Happy 2014! I hope that this year is all you hope for. If you are looking to buy a house I wish you even more luck. It’s going to feel like Groundhog Day (er, or Groundhog Year…). Just like the classic 1993 movie with Bill Murray, the 2014 real estate market will feel identical to the 2013 market, as I expect this year to be just as difficult if not harder to secure a home. I expect that houses will be in short supply and the few homes that come out on the market won’t be the best property options in the city. People are holding their homes for longer at this state due to the double land transfer taxes and that their options to move up are so limited, that the difference in a semi detached and a detached value are no longer far apart. Semi values have skyrocketed over the years. Here’s the latest market report:
JANUARY MARKET REPORT
4,078 residential transactions through the TorontoMLS system in December 2013 – up by almost 14 per cent compared to 3,582 sales reported in December 2012. New listings entered into the TorontoMLS system were down by almost four per cent over the same period.
Total sales for calendar year 2013, at 87,111, were up by approximately two per cent compared to 85,496 transactions in calendar year 2012.
“After a slow start to the year, sales growth accelerated to a brisk pace in the second half of 2013. Despite the inclement weather in December, we finished the year with a respectable gain in transactions compared to 2012. Looking forward, I believe that home ownership in the GTA will remain affordable as borrowing costs stay low. The result could be a further increase in sales in 2014,” said Toronto Real Estate Board President Dianne Usher.
“The average selling price will be up again in 2014 and by more than the rate of inflation. The seller’s market conditions that drove price growth in the second half of 2013 will remain in place in many parts of the GTA. Some neighbourhoods, especially those characterized by low-rise home types like singles, semis and townhomes, will continue to have less than two months of inventory,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
The average selling price for December 2013 sales was $520,398 – up by 8.9 per cent compared to the average of $477,756 in December 2012.
The average selling price for 2013 as a whole was $523,036, which represented an increase of 5.2 per cent compared to the calendar year 2012 average of $497,130.