Year 2014 was a good year in real estate with 92,867 residential sales through the TorontoMLS system, including 4,446 in December. The calendar year 2014 sales result represented a 6.7 per cent increase over the 2013 sales figure of 87,049 and was just short of the record set in 2007. The average selling price continued to grow on a year-over-year basis in calendar year 2014, with an 8.4 per cent increase over calendar year 2013 to $566,726.
Here are some interesting facts about the GTA real estate market in 2014 that caught my attention, I thought you might be too.
1. January was the only month in 2014 when number of sales are lower than the numbers recorded in the same period in 2013. 4103 transactions were recorded in January 2014.
Like previous years, April to July and October are the busiest months in the real estate market.
2. In 2014, the average sales price in October was the highest at $588,018. In 2013, the highest average sale price was recorded in May with October the second highest.
3. According to the Toronto Real Estate Board Market Watch Report Issue December 2014, there were 21 detached homes were sold for under $100,000, 243 under $200,000 and 1711 under $300,000 in 2014. So where are these homes?
I could only find 13 “detached homes” in the “Greater Toronto Area” which were sold under $100,000 in 2014. Most homes are 2 bedroom, 1 bath bungalows found in the municipality of Clarington, in the community of Newcastle or Bowmanville. Some of these are vacation cabins and were sold without land. There was a century-old 2 bedroom home in Brock which was a bank sale.
I performed a search on the MLS for detached home sold for $100,000 to $200,000 in the “GTA” and got more than 200 results, most of these homes are 2 to 3 bedroom, 1 to 2 bath bungalow over 50 years of age (with the majority looking like century-home). You are most likely to find these homes in Brock, Clarington, Georgina and Oshawa. I found 3 homes with good size lots, ready for a complete tear down in Ajax sold for just under $200,000 and those 3 were the closest we can get to Toronto.
Your choices won’t improve a lot with a budget of mid $200,000 but with close to $300,000 you can have a choice of complete renovated, move-in condition older (40 years or more) bungalow or smaller 2-storey in Ajax, Brampton, Uxbridge, Whitby, with a few homes in the corners of City of Toronto. Let’s look into this in a later post. Stay tuned!
4. Using the MLS Home Price Index, the area (in city of Toronto) or municipality (outside the city of Toronto) which recorded the highest year over year increase was Toronto W09 area, which record a 13.24% increase followed by the municipality of Whitchurch-Stouffville, 13.04% increase. Toronto W09 district is the general area of north of Eglinton, South of Hwy 401 between Royal York and Martin Grove. Whitchurch-Stouffville in York Region is the municipality east of Hwy 404, north of 19th Avenue, south of Davis Drive and west of York-Durham Line.
5. Using the MLS Home Price Index, Townhouse in Toronto W05 recorded a decline of 8.78% in benchmark prices in 2014. The MLS W05 district is the general area between Dufferin and Weston, North of 401 and South of Steeles, with Jane and Finch being the center of the district.
What do you think would happen in the real estate market in 2015? With strong reported sales in January 2015 of 4355 MLS transactions recorded in the GTA, a 6.1 per cent increase over January 2014, and the low mortgage rate and the tumbling Canadian dollar, 2015 is definitely going to be a breakthrough year in the Toronto residential real estate market.