Toronto Market Watch
There is no question; Toronto’s real estate market has been on fire this spring. Take a look at some recent headlines that tell us we are in the midst of an exciting market.
These recent headlines all tell the same story of insane bidding wars, bully offers, buyer desperation and ecstatic sellers. I can say with confidence, these articles paint a very accurate picture of the current Toronto market. As an estimate, I believe that many pockets in my core area have gone up as much as 10% in the last 3 months alone.
This is especially frustrating for buyers, as their down payment is not increasing at the same rate as the market. I have taken the chart below from a timely Financial Post article, showing the increase in property values year over year. The average price for a detached house in April was $1,257,958. In one year, this 18.9% price jump of over $200,000, requires a buyer to have an addition $40,000 in down payment and their household income must now qualify for an addition $160,000 in mortgage!
On a whole this makes for a tough market. A good portion of my business comes from repeat business. Many of my would-be sellers would love to cash in, but at the same time can not afford to be move up buyers in this market.
This Seller’s market has been phenomenal for those wishing to sell their homes or investment properties and not buy back into the Toronto market. I have had a number of downsizers moving out of the city achieve record results for their properties. For client’s ready to downsize, but not wanting to leave Toronto, the condo market or leasing can be an attractive next step.
As always, I am available to discuss market and your specific goals. Please reach out if you need advice on your real estate next steps.