November 2020

The market has been extraordinary, in particular over the last 4 months with many multiple offer sales occurring right through to the end of November. 

There's no question that the mood and traffic has improved with the news of the coming vaccine.  Also many bond/GIC investors have moved maturing proceeds into real estate to improve on the current low yields in the bond market.

The average price of a detached 2 storey home was $1,782,000 up 25% from a year ago and 7% from October.  The number of sales was up 30% year over year and the ultra-luxury segment was strong  (homes > $3MM)

Bungalow sales prices and volumes remained flat with an average sale price of $1,140,000.   Sidesplits and backsplits sold on average for $1,342,000 up 38% from 2019.  There were 10 sales, same as last year. Like bungalow properties, many of those were purchased for their generous lot sizes and redevelopment.  Condo apartments were up 8% to $610,000 with about the same number of sale.  Freehold and Condo townhomes were each up 15% with average selling prices of $882,000 and $721,000 respectively while semi-detached homes jump 22% to $954,000.

The rental market was relatively active for this time of the year with 149 leases up from 130 ranging in lease price from $1,650/mth to $12,000/mth.  Tenants also pay the utilities.

At the moment there are 416 homes and condos for sale, down from 600 last month.  Stay tuned to see what unfolds early next year!

October 2020

As expected the hot market continued during October.

171 detached 2-storey homes sold during the month at an average price of $1667000 up 20% from October 2019's $1390000 average selling price, while sales volumes were up 40%.

The rental market activity was consistent with September 2020 with 29 properties renting.

Financing is slightly more attractive with 5 year mortgage money available at 1.79% and variable at 1.80%.  No wonder the market is so active.

Covid-19 has caused some apartment dwellers to return to lower density alternatives for added safety.

At the moment there are almost 600 homes and condo's on the market for sale giving buyer's a little more choice.

The majority of sales take less than 3 weeks, but as always, there are more than a few that languish and take months to sell.

It seems that this November will out perform last year's numbers.

 

September 2020

The real estate market is still sizzling and those homeowners who have decided to sell now continue to do extremely well.

The number of detached 2-storey home sales volume was up 37% (third quarter over third quarter) with 459 sales transactions.  The average detached 2-storey home sale price was up 15% from August '20 to $1948800. WOW!  The ultra luxury sector has contributed greatly to this extraordinary increase.

And of course homes continue to sell quickly, many in just a few days and with multiple bids. 

Mortgage financing remains very attractive and at historical lows with 5 year mortgage money and variable mortgages both available at 1.85%. 

Rental activity was quiet compared to other years with just 31 transactions during the month. The cheapest was $1500/mth for a basement apartment in Falgarwood.  The most expensive was $4900 for an executive home in Glen Abbey.

I think this activity will continue this month and will start to wind down in November.

The housing market is proving to be a good place to park your cash for many investors given the low yielding financial market product alternatives.

August 2020

The buying frenzy continued with many homes receiving multiple Offers, and sales volumes are way up year over year.  With of all of these multiple bids the time it takes to sell is approximately 21/2 weeks or, 18 days. That's pretty quick when you factor in that Offers with conditions take about a week to satisfy.

163 detached 2-storey homes sold during the month at an average price of $1693900. That's 67 more sales and a 14% sales price increase.  Essential almost $1.7 million compared to almost $1.5 million ($1480200 in 2019).  This August also saw a big jump from July 2020's $1455700 average price.

The rental market was softer with 30 transactions compared to 71 in August 2019.  Likely some tenants have decided to take the plunge and make a purchase rather than continue to rent.

Definitely the busiest August in my 24 years.  I expect this activity to continue this Fall.

July 2020

The average price of a detached 2-storey home was up just over a point to $1,455,700.  So prices really haven'y moved that much.  Sales volumes moved in concert with sales prices with 11 more  this July than July '2019's 141 2-storey home sales. A slight increase.

A number of homes have attracted multiple bids, selling quickly and above their asking prices.  These properties tend to be priced below $1,300,000.

The majority of homes priced above the $2,000,000 tend to languish on the market before finding a buyer and usually experience a few price reductions before finally selling.  A few though have sold quickly.

The average time it takes to sell a home is 24 days.  The market has been very busy for this time of the year (normally vacation time) with a lot of buyer's out looking.  We will see if this activity continues through August.

2nd Quarter 2020

Sales volumes continue to be a drag on the market.

For those that did have to sell, the market sure has been positive.  Although sales volumes were less than half 2019 at 184 sales compared to 400 for all types of housing, the average sale price for a detached 2-storey home was up 15% during the quarter to $1,559,000.  The time it took to sell a home was about the same as last year at less than 30 days.

In particular, June's activity was very busy with several properties receiving multiple bids.  The average price for a detached 2-storey home increased a whopping 16% to $1,717,000 compared to June 2019's $1,470,000.

Among those sales 30 homes sold over $2,000,000 and a dozen of those sold above $3,000,000.

The cold Spring did keep many buyer's and seller's on the sidelines well into the second quarter and the somewhat improved COVID-19 environment has also contributed to the added excitement in the market with families deciding to go ahead with their plans.  Foreign investment is also helping out these increases.

We will likely see this hot market continue over the first half of July and then soften until the Fall.

May 2020

Sales volumes were up 15% over April and there seems to be more activity in the market with more homes and apartments being shown.   This trend is likely to continue.
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The average sale price for a detached 2-storey home was $1,505,000.  This is down 6.5% from April 2020 and up 14% from a year ago.

Most properties on average took less than a month to sell.

The number of sales is still is still very low.  Volumes for both resale and rentals were down 60% compared to May 2019.  I expect to see an increase in supply with the warm weather. 

April 2020

The shadow of the Coronavirus has been felt in sales volumes.  The number of properties which sold or rented both fell 70% year over year.

The good news is for sale property selling prices have been holding and are up slightly from March 2020.  The average price for a detached 2-storey home edged up a 1/2 point to $1,604,000 and was up 12% from April 2019.  Seller's needed about 26 days to sell their properties which is pretty quick.

And surprisingly there were a few multiple Offer transactions!

The same hasn't been the case for rental properties.  With many tenants losing work and landlords losing income, the rental rates have been dropping.  And some tenants have been breaking their leases to acquire cheaper alternatives or, move to a better building locations/larger spaces closer to work.  Lease rates are off approximately 10% and may continue to fall further.  As a result of this we may see an influx of existing condo apartment rentals come to market for sale, as investors start to sell.

March 2020

The hot market which started earlier this year slowed just after the middle of March over concerns of the Coronavirus. And rightly so.  Real Estate has been deemed an essential service in Ontario so business continues albeit under strict showing protocol.

The Bank of Canada reduced the bank rate again however, chartered banks have not passed along any savings to their mortgage consumer clients.  It has also made it difficult for seniors many of whom invest in GICs.  Those investments earn very little at this time, and as higher yeilding GICs mature for rollover many seniors will feel the pinch.

The average price of a detached 2-storey home was a more than reeprctable $1597000 up almost 14% from the first quarter of 2019 and down about 6% from February 2020 extraordinary average. 
$1.6 million is a healthy average.  Volumes were down about 10%.  Again not too bad all things considered.

The rental market had light volumes and will likely stay that way until things get back to normal.  Most tenants contemplating a move will likely stay put unless it is absolutely necessary.  And of course many landlords will experience some defaults in payment due to job losses.

So business as usual for real estate for now unless further direction comes from the Government and Health Canada.

February 2020

The market is back!  Very hot and similar to the first quarter of 2017 with several multiple Offer sales transactions.

This February saw 20 sales greater than $2,000,000 with the highest sale going for $9.4 million! This of course inflates the average price for a detached 2-storey home to almost $1.7 million or, more specifically $1,696,000. That's up 25% from last February's $1,353,000 average sale price and this January's $1,350,000.  And the time it takes to sell a home has been cut in half to 16 days.

Sales volumes have increased dramatically as well to 300 from 196.  Up over 50%!  Mind you we had 1 extra day with February 2020 being a leap year.

It also looks like there may be a rate cut coming soon and it may be as much as 1/2 a point.  So that should spur on more activity.

So far the Coronavirus has not seemed to impact our Canadian housing market.  It has however, effected China's housing market and North American stock market indices.  This may likely cause a slow down in our real estate market if consumers portfolios continue to drop in value (on a paper basis) and decisions to move are shelved.  Will have to wait and see.

Boomers anticipating a lifestyle change move will likely go ahead with their plans.

January 2020

Welcome to a new decade!  Let's hope for things to improve.

Prices are essentially flat year over year.  Detached 2-storey homes for example sold for and average price of $1350000 down slightly from January 2019's $1356000.  2-storey selling prices had gone up to $1374000 during the 4th quarter of 2019 so there was positive price movement in 2019.  The average time it took to sell a home was up 3 days to 42.  Also not that many homes were (sold) closed this January compared to last January.  However, a number of homes sold during the month that will close over the next few months.  In many cases these homes were relisted at lower prices after being on the market for several months last year at a higher price and not selling.  So it is nice to see the new life in the market this year.  There were 56 pending detached 2-storey homes sold in January 2020.  51 sold over $1000000 and 14 sold over $2000000.

Volumes are still low, as is inventory/supply but we are starting to see more homes come to market.  Not surprisingly when a home that appeals to the masses comes along we see multiple Offers.

I expect the market to become more active with more listings and sales.  There are alot of buyers shopping around.  You see them when a new listing hits the market, when you are out showing a home and another agent is also showing the same home at the same time, and at open houses.  It looks like this Spring and the months leading up to it will be very busy.

On the rental side there were 97 sales closed in January compared to 174 a year ago, down 80%.  Given the overall low sales volumes that is still a healthy number.   In a few instances the owner was unable to sell a new luxury home and had to resort to renting it out until prices increase.

Interest rates are still very attractive and low.  Banks are offering 5 year rates not much higher than shorter term money (about 30 basis points) which tells you they are not foreseeing any immediate major increases to the prime lending rate and are looking to secure more longer term mortgages to increase their profit margins.

4th Quarter 2019

The average sale price for a detached 2-storey home was $1374000 and it took 39 days on average to sell a home during this quarter.  That is the lowest 4th quarter average selling price over the last 2 years when they sold for $1646000 and $1476000 in 2018 & 2017, respectively. Those average days on market were 37 and 30.

Condo apartment average selling price was $520514 which is down from last year's $535000 and up from 2017's $492000.  Similarly detached bungalows sold for $989571 down from $1018000 and $1268000 when compared to 2018 and 2017.

Sales volumes improve to 376 this quarter from last years 248, for all types of housing, but are still down from 2017's 549 sales.

The rental market has show some strength with 432 properties rented compared to 2018's 260.

Here's hoping the economy for 2020 will experience positive price growth with the continued low interest rate environment, a brand new decade to look forward to and the expected settling down of the political and economic policy.