The first thing to keep in mind is the benchmark price which is the point of reference from which the 2019 measurement is being made . That being said, the average house price the year before, 2018, was 819,700 and in December 2019 was 837,788. That’s an increase of 11.9% compared to 2018.
Then we have the average price per type of home, and we see how all types of homes experimented and increase last year. Detached homes by 11.6%, semis 6.5%, townhouses 7.8% and condos 10.4%.
Important considerations:
- The number of sales increased in the past year by around 17%. So even though we had less new listings there were more properties sold from what was available in the market.
- Average Days On Market (DOM), that is the number of days a property lasts in the market be fore it gets sold, was 29. That represented a decrease of 6.5% which means properties sold faster than the year before.
- The number of new listings (That means number of properties that came into the market) was 3,531, a decrease of 18.1%.
- And the number of active listings these are the properties that haven’t sold, was 7,406, that’s 35.2% less than the year before.
What does all this mean:
- For one, it means that we remain in a seller’s market mainly due to the lack of inventory. On the buyer’s side that also means less leverage for negotiating price or conditions for the buyers and more competition when looking for a home, especially in areas with higher demand.
- The restricted availability of inventory has also translated in that average price increase that we experimented in the past 12 months.
- It’s also interesting to note how the increase in the average price of houses continues to put pressure on the condo market as larger homes become less affordable.
- And what to expect for 2020? Well, we think that as long as the inventory continues to be low, the pressure on price will continue considering there’s a larger demand. There are more buyers out there than good properties for sale.
- If you’re buying do not get discouraged though, you might just have to be more patient but with the right advice at hand (and our hand), you will succeed. If you’re selling, then you’re in for a good reward, you will still need the right advice and exposure to get the best out of this market. We’re here to help you.
Remember that these numbers include all Toronto Districts, so if you’re interested in knowing what your neighbourhood statistics are (or the one you want to move in) or how much your home is worth in today’s market, feel free to reach out at clientcare@castillopardo.com and we’ll be more than happy to help.