Toronto Market Recovery
Tuesday Oct 10th, 2017Share
The Ontario government created several policies in an effort to control the real estate “heated” market. This did in fact slow down the market over the past several months while these changes were implemented. Sales volumes decreased, prices were impacted, bidding wars and bully offers weren’t required anymore, and some deals were negatively impacted and have gone to litigation.
Buyers have stood back for a long time now, contemplating with their hard-working Agents, “When is it a good time to get back in the market?” I always tell my clients that the search should never end.
Toronto’s Market Recovery
The average detached home in Toronto sold for $1.36 million in September. Although less than the peak price of $1.58 million in April, the market has recovered by 13.8% in September when compared to August. Year-over-year, prices are still up.
What we’re seeing in Toronto is nearly identical to Vancouver's market. The B.C. government implemented similar measures in August 2016, including a new foreign-buyer's tax, and average house prices dropped five months later in January 2017. The In April when we saw similar measures implemented in Ontario, prices possibly fell to its lowest in August, only four months later.
I suspect Toronto will see prices rising at a steady pace. Vancouver has already recovered with prices rising again in May this year.
The condominium market has had excellent growth in both Ontario and B.C. Condo prices in Toronto are up 2.5% in September compared with August. B.C. reports indicate that prices for condos are up 22 per cent in September compared with the same month last year.
Yonge Street Condominium Apartments
A one-bedroom unit at Yonge and Finch sold for $390,000 in March 2017 within one day on the market. The maintenance fee was only $389/month, which is impressive considering the area. Overall, not bad, and even has potential to cash flow as an investor.
One month later, a similar unit in the same building sold for $438,000 within five days on the market. This is higher than the average of $422,000 in that area over the last several months.
A comparable unit in the same building originally listed at $438,000, went through a price change to $420,000 and finally sold for $425,000 after 53 days on the market.
“But that’s Yonge Street”, you say. So, let’s take a look at another area.
Scarborough Condominium Apartments
Have you seen the Tridel buildings at Kennedy and 401? A one-bedroom unit sold for $315,000 after two days on the market. Rewind to December 2016, and you would’ve seen the same unit sell for about $265,000.
Now consider the new housing rules, foreign investor taxes, vacancy taxes, strict mortgage rules and rent controls, which is where we are today. The same unit is still able to sell for $326,000 in today’s market.