SWITZER GROUP MARKET UPDATE - JANUARY 2012 

 

As 2011 progressed and the demand for houses never abated, we knew we were experiencing an above average year for real estate activity in Toronto. We were right!

 

The 4,718 homes sold in December brought the total sales in 2011 to 89,347, the second-best year in Toronto’s history. Prices continued to rise in 2011 and ended the year at an average of $465,412, an increase of 8% over 2010’s $431,276.

 

The boundaries of the Toronto Real Estate Board are made up of many smaller communities. Here are some average prices of a few of them.

 

City Of Toronto West $474,270 Aurora $527,065

City Of Toronto Central $566,589

City Of Toronto East $392,768

Vaughan $567,258

Richmond Hill $601,855

 

Even these smaller communities cover vast areas with varying prices and unique neighborhoods. City of Toronto Central covers an area from the Lake in the south to Steeles Ave in the north. That’s why it’s critical to deal with a full time agent who knows your particular neighborhood.

 

2011 also marked a new high of listings to sales ratios, as 89,347 of the 146,937 listed homes sold (61%). The list price to sale price remained high at 99% and the average home took 26 days to sell.

 

There are many predictions about the economy and real estate prices in 2012. TREB’s forecast for 2012 is for an average price of $485,000, a 4% price growth. These predictions remind me of the weather forecasts, as often wrong as right. Here are the facts as I see them:

• The economy is strong.
• Emigration continues at record levels.
• The cost of housing is affordable due to low interest rates.
• Builders are building smaller units to keep prices down and encourage sales.
• Rental rates are similar to cost of ownership
• The boomers’ little kids are almost all grown up. Members of Generation Y — a.k.a. the “millennials” or “echo boomers” born from 1977 to 1994 —numbered around 9.2 million in Canada in 2011. They are ready to buy!

 

These factors will continue to keep the real estate market active and prices will continue to rise. How much? Only the weatherman knows for sure!

 

Have a great January, and remember, we are never too busy for your referrals!

 

Your friends in Real Estate,

 

Michael and Steven Switzer