As you can see, according to TREB, the 2015 real estate market has seen a year over year growth as compared to 2014. The figure given was about 14percent increase year over year. Now this number might describe to us one of two things. 1) The market is growing, and we as Canadians can feel comfortable with a steady growth ahead. 2) Home owners are leaving their properties to cash in on the equity they’ve earned thus far, in vision of a possible future inability to satisfy large mortgage payments. As a result, we see the price of detached/semi-detached homes rising by about 9-12% depending on the region of the GTA (South vs North). Furthermore, with the increase of Detached/Semi-Detached sales in Toronto, we see Condo sales increasing mainly within the 200K – 550K price point. It seems as if the market is slowly but surely switching out of the detached/semi-detached market and favouring the condo freehold instead; we see that the inflated price in the detached market should regulate in the future, to reflect the increasing demand for condos and the increasing sales in detached/semi-detached homes. According to the Toronto Real Estate Board, by Nov 2015 we were currently seeing condo sale quantities at 23,277 units year-to-date, with total detached sales at 46,543 units. The average price of a condo being $379,925 and a detached home being $805,942.
I believe that parents born between the mid 40’s to mid 60’s (Baby Boomers) are seeing the youngest of their children go off to school or to rent with friends, or better yet to become a home/condo owner (likely not a detached home). This leaves our parents with an empty nest syndrome, which means they miss their little birds but of course, the nest begins to feel much too big. Mere speculation tells me that detached sales will eventually regulate, as the younger equity lacking generations begin to reach out for their own detached homes. Further speculation tells me that the price of condo apartments will rise as the price of detached homes declines.
Always sell while the market is hot, we can help you figure it all out.