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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"When you’ve lived in the same home for over thirty years you think you know the area pretty well and the price your house is likely to fetch and that it’s just a matter of appointing an agent and putting it on the market. But I didn’t know how to go about choosing an agent (there are so many of them) and when Paul was recommended to me by another experienced real estate broker whose judgment I respected, I appointed Paul. It was a great choice. What Paul demonstrated to me in spades (or spadework) is that comprehensive research, extensive knowledge of the local market and superior judgment is involved in establishing the right price. He proved to me with his research and the statistics he provided, that his price (which was higher than my own judgment would have suggested), was indeed the right one. But that was just the beginning. Having done that, Paul worked hard on developing publicity for the house in the form of brochures, video, floor plans and other literature, using very professional people. As a result of the publicity, the overall impression of the house provided by the video and the brochures was superior and resulted in what I understand are very high numbers for the open houses and a large number of private showings. The third important step that Paul took was in talking to potential buyers, to stimulate interest in the property prior to the offer date and then spending a long evening negotiating as offers came in. Paul was outstanding. The result was multiple offers and a very successful sale. I was indeed well-pleased and also very impressed with the professionalism exhibited in the whole process. I had no idea what a difference it could, and did, make."
~ Margaret Robertson - 74 Bedford Park Avenue