Current Market Trends

Real Estate Market Report - May 24, 2013

Friday, May 24, 2013

It's been a wild ride in the Toronto real estate market over the past few months. After steep monthly declines in sales from August to December 2012 despite continued rising prices, and the accompanying drumbeat of doom from the financial and real estate press - like this article in Canadian Business that asks "how low will house prices go?" - we were concerned that we might continue to see a downward trend into the new year.

However, according to the Toronto Real Estate Board, that doesn't seem to be the case. Instead, sales were down so little as to be nearly statistically insignificant (4,375 sales in January 2013 as opposed to 4,432 in January 2012) and average prices were up by 4.3%, with the MLS Home Price Index Composite Benchmark price up 3.8%. This points to a housing market that has experienced a bump, but not a crash, and is on its way to long-term health and stability.

That said, these figures are averages only. If you're buying or selling, pay attention to your micromarket, not the market as a whole. A micromarket is a piece of the market that has its own specific real estate trend; it can be a particular neighbourhood, a particular school district, even a particular price point. Any way you can slice the statistics can be considered a micromarket. And really, every home is part of a micromarket - or more than one.

The Toronto real estate market statistics we see in the newspapers are based on the market as an aggregate whole, not individual neighbourhoods or price points. If you are planning on buying or selling a home, instead of looking at the average numbers, it's important to work with a real estate agent who understands the micromarket that your house occupies. And that's where I come in. Please feel free to give me a call or send me an email at any time. I'd be happy to help!

{encode="paul@iknowluxuryhomes.com" title="Paul Sarradet"}
Sales Representative
Harvey Kalles Real Estate Ltd., Brokerage
2145 Avenue Road | Toronto, ON M5M 4B2
Client Line: 416.841.5432
Office: 416.441.2888 ext. 313
Fax: 416.441.9926

 

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"Trustworthy and professional, Paul Sarradet (read his warm personality) knows how to make you feel comfortable while he takes the time to understand
you - and your needs. Paul truly cares about his clients and also knows how to put them at ease, making it really easy to work with him."
~ Marjorie, Toronto