Louisa Baumander's Toronto Real Estate Market Update

December 11, 2014

Hello again. Lechyd da! Bottoms up! Salamati! L’chaim! Salud!

As we approach the Holiday Season, hopefully the pace of life in the big city can slow down a bit and give us all a chance to reflect on the past year, and an opportunity to plan for the year ahead of us.

Thank you so much for your continued support. I sincerely acknowledge how fortunate I am to have the clients I do. Wishing you the happiest of seasons and a coming year filled with all the best there is in life to enjoy: the love that surrounds you and good health!

On to my newsletter: the last of 2014.

I was fortunate to attend the CMHC’s yearly Toronto Housing Outlook Conference.

A few highlights:

• We are not seeing much speculation. From Land Registry, we are seeing only 3-5% foreign investors. Builders are not overbuilding. There is no anticipated rise in mortgage rates, no increase in bond yields or bond prices. The market is not considered to be overheated. There will be no decrease in prices. Price increases will slow but not decline. Because of price increases in single dwellings there will be a strong demand for condos.
• The Ontario economy is expected to grow, and for the first time in over a decade, it will outpace western Canada, causing inter province migration.
• Our exports are expected to continue to grow, full time work will reach pre-recession levels but earnings will grow only moderately.
• Housing starts will remain below demographic demand.
• Windsor is the least expensive of Ontario towns, Toronto the most expensive. The price gap between singles and apartments will narrow.

Click here for November’s Home Price Index

I compiled a few average prices of my own for the month of November. Please let me know if there’s an area of specific interest to you.

Freehold: (all average numbers)

C02: Wychwood: 4 detached homes sold. Average price $1,097,000. 103% of asking,14 days on market
C03: Yonge/Eglinton: 3 detached homes sold. Average price $1,178,333. 108% of asking. 22 days on market.
C04: Bedford: 23 detached homes sold. Average price: $1,704,227. 97%of asking. 25 days on market.
C09: Rosedale: 4 detached homes sold. Average price $1,941,250. 95% of asking. 44 days on market.
C10: Mt. Pleasant East: 8 semis sold. Average Sale price: $827,500. 105% of asking. 9 days on market.
E01: N. Riverdale: 3 X 3 bedroom 2 storey detached sold. Sale price: $1,105,667. 122% of asking, 14 days on market.
E02: Woodbine Corridor: 4 X 2 storey semis sold. Average price: $721,750. 116% of asking. 4 days on market.
W01: High Park: 3 X4 bedroom detached 2 storey; Average price: $1,252,000. 105% of asking. 12 days on market.
W02: Junction 4 X 2 storey semis sold. Average price: $688,000 103% of asking. 16 days on market.
York: Royal Orchard 2 X 4 bedroom detached homes sold. Average price $704,000. 93% of asking. 43 days on market.

Condos:

C01: Waterfront: 1 bed+ 1 bathroom+ 1 parking: 17 sold. Average price $375,572. 97% of asking. 38 days on market.
C02: Yonge/St.Clair:3 X 2 bedroom, 2 bathroom + parking. 3 sold. Average price $802,333. 102% of asking. 15 days on market.
C07: Willowdale West: 7 X 2 bedroom 2 bathroom + parking. 7 sold. Average price: $397,571. 97% of asking. 22 days on market.
C10: Mt. Pleasant. 14 X 2 bed, 2 bathroom + parking sold. Average price: $562,757. 99% of asking. 24 days on market.
W06: Mimico. 5 X 2beds+ den sold. Average price: $480,700. 97% of asking. 31 days on market.
York- Vaughan-Crestwood/SpringFarm 5 X 2 beds 2 baths. Average price: $437,600. 97% of asking. 43 days on market.

The increase in prices has changed the way people view their homes, and a home now represents a growing share of the wealth. This means that there is a greater risk in having all ones eggs in the real estate basket..

Market Update for November

6519 home sold across the GTA in November. This is an increase of 2.6% when compared to the 6,354 homes that sold November 2013. Year over year, sales are up by 6.6%. November prices are up by 7.4% to $577,936. Year over year prices are up by 8.4% to $567,198. Obviously a great deal higher in “demand” areas.

Demand areas are so-called because of the area schools, easy access to the TTC, access to places of worship, access to green areas and areas where personal crime is low..an area where we might feel safe. What springs to mind are North Riverdale, Davisville Village, Chaplin Estates, Yonge Lawrence, St Andrews Windfields, Willowdale, Armour Heights, Swansea/High Park, Bloor West. "The robust average price growth experienced throughout 2014 has been fundamentally sound, with demand high relative to supply. Strong competition between buyers has exerted upward pressure on selling prices. Barring a substantial shift in the relationship between sales and listings in the GTA, price growth is expected to continue through 2015," said Jason Mercer, TREB's Director of Market Analysis.

In the news today, more bumbling by the Provincial Liberals. More tax payers’ money squandered. Apparently, a cost-benefit analysis was not carried out prior to cabinet approving the Smart Meter program for hydro.

The purpose of the Smart Meter was to reduce the demand for hydro at peak times. The projected net benefit was projected after the roll-out at $6,000,000. Apparently this was overstated by a whopping $512,000....pretty scandalous, isn’t it? And we are paying. Click here for Hydro One’s Cost Calculator. To cover the cost of this incompetency, our bills are expected to increase monthly by a minimum of $2.00.

Windows can be a major source of wasted energy. Does Jack Frost come to your house on a cold winter’s night and leave his finger print in the form of beautiful icy filigrees? These intricate designs are caused by condensing moisture inside the home coming into contact with the freezing surface of the window and turning to ice.

The best way to combat this is by reducing the moisture levels in the house. Turn down humidifiers; make sure your dryer vents properly; use exhaust fans when cooking; and when the air gets a little stale in the house, open a window now and then.

Weather stripping can help, as can opening curtains and blinds to let the warm interior air hit the windows. Plastic sheeting taped across a window can be a huge if somewhat unattractive solution.

And dream of summer. Sometimes on those sweltering hot July days, I will think of the cold depths of February and feel a little better.

Kind regards,

Louisa