Despite an unusually cold, and snowy March, 7,765 homes were sold through the Toronto Real Estate Board. (Does not include builders' sales of preconstruction homes and condominiums). This brings the total sales for 2013 to 17,678 - down from the 20,626 sales at the same time last year.
The average price for the first quarter was $508,066, an increase of $10,920 (3.2%) since December 2012. The unexpected price increase over the cold winter months, plus a short selling time, (24 days to sell the average home), is a good indication that the demand for houses remains strong. With no "bust of the real estate bubble" evident, home sales and prices will continue to heat up over the next three months as we enter Toronto's Spring market.
Economically nothing has changed for the GTA. We are stable, interest rates are low and affordable and massive immigration and the resulting demand for homes has not diminished. In other words, real estate demand continues and prices are expected to rise again in 2013.
The challenge with "averages" is that while they give you an idea of trends, they don't show the complete picture. For example:
If one house sells in 1 day and another house sells in 47 days, the average time to sell a house is 24 days. If 1 house sells for $500,000 and next door, the identical house sells for $560,000, then the average selling price is $530,000. In these cases, (which happen every day!) averages are not satisfying at all.
These drastic differences occur as a direct result of the real estate agent and company one chooses. Bigger companies spend more in promotion, websites, and advertising as well as training and supervising their agents. Better agents are more talented, conscientious and committed than most. If you needed a heart transplant, would you go to any doctor, or would you find the best? With a home being the most expensive asset people will ever own, I know that different agents get different results! While any home will sell, the price, terms, conditions and ultimate satisfaction of the buyers and sellers needs and desires are not met by all agents. (In 2012, over 8,000 agents did not sell 1 house!)
If you need some real estate advice, or know of a friend who is thinking of buying or selling, please feel free to give me a call.