Recently newspaper headlines reported that compared to March 2012 the current real estate market is up 3.8% in price and down 17% in sales. In some cases clients may interpret these numbers as absolute and then turn around and apply them to property values across the board. But if we take a closer look at the actual numbers and their breakdown we see that there are some major differences between increases and decreases among varying property types and property locations. For example, while the value of condominium apartments located outside the city of Toronto has had a moderate average increase of 1.3%, townhouses sold in the city of Toronto have increased by 7.5%.
Furthermore, although it is true that the market is not as robust as it was last year, I personally witnessed a few transactions with multiple offers just this past week. One of them, a property in the Lawrence Park area, attracted twenty two offers and sold for 30% above the asking price. Based on the current real estate market conditions I am certainly not advocating a “hot” market. I just want to keep my clients well informed by providing the most current market data so that they can make intelligent decisions on how to best optimize their real estate investments.