May Days in Toronto Real Estate
Here are the facts for sales in May for the Toronto Real Estate Board.
10,182 homes sold, bringing the year total to 37,224. 43.15% of the annual sales occur by May 31, so it appears that we will have over 86,000 sales by the end of 2013, making it a more active year than 2010 and 2012, (89,000 sales in 2011).
The average selling price for May 2013 sales was $542,174 – up by 5.4 per cent in comparison to $514,567 in May 2012, and the average sale price for the year rose to $521,418.
While the demand for homes remains strong, there is a slight adjustment occurring, from a Sellers Market to a Buyers Market. A Sellers Market exists when there are fewer homes available for sale than buyers. Prices rise steeply as buyers compete to buy a home. In a Buyers Market there are more homes available for sale than buyers. Buyers have several homes that they can buy and can negotiate at leisure to get the home that they like. HOWEVER, well priced homes, within 5% of the market value will sell quickly and with multiple offers. (If a property is for sale longer than 18 days we know it is overpriced by at least 5%!)
It is still a great time to buy real estate. Prices are expected to continue to rise. With the recent tightening of mortgage rules, rental properties will benefit as some individuals will continue to rent instead of buying. With low interest rates, it’s a great time to buy an investment property or upgrade your personal residence.
The market is changing; you probably have many questions. Please feel free to call one of our full-time, experienced real estate agents to get the real scoop on the market. No obligation!
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