Posted 12.5.13 @ 8:21
Last month CREA and CREB warned that home and condo sales would hit a slump and prices would begin to slow their ascendance – but prices were up 11.3% and sales rose about 14% year over year compared with November 2012, and that’s a big jump! Even with all the steps that Ottowa and the Toronto Real Estate Board have taken to try and make the market cool down, it’s all been in vain.
So what does this all mean? This means that your home’s value may have gone up by 12% this year, and it could also mean that you’ll be able to sell your home a little bit easier now than you did last winter. If you’re looking to buy a home
Homes Gain $4k on Average Since October
In October 2013 the average home price was $534k, and now it’s at $538k – compare that all with the average home price in November 2012 when the average home price was $484k. That’s a big leap.
The Canadian MLS Home Price Index Benchmark uses algorithms to wheedle out any rushes on homes (like at the end of a good season for example) to avoid skewing the numbers, the rise in home prices and sales year over year actually drops to 5%, which is still a lot more than they were expecting.
But what does this mean? If you had an average home you decided not to sell in the GTA worth $484k last year, then this year its worth could have gone up to $538k. That’s an amazing leap – and with so many homes that were on the market now off the market, your home could be worth even more now.
Fewer Homes for Sale
Another reason home prices are climbing is demand – many of the homes that came on the market last year during the Boomer Gold Rush of 2011 and 2012 have been sold, and many buyers are still out there on the market, roaming around, trying to find their dream home.
So that means home prices go up, sales go up in traditionally dormant months for Canadian real estate (sales between November and February are normally extremely low, resurging with the first big thaw) and people are paying good money just to have a chance to buy.
So fewer homes for sale means the homes that are on the market (most importantly, the desirable ones) will cost more and may face fiercer competition.
Condo Sales Up by 13-14%
Condo-geddon was supposed to spark this year, but it still isn’t there quite yet. Condo sales were up in the suburbs by 13% and up in the cities by 14%. Next year it’s estimated 18,000 to 43,000 new condos will come onto the market.
If you’re looking for a condo or a new home, give us a call. The Goodale Miller Team (that’s us) has been buying and selling homes with our clients in Oakville for years. Why do it on your own when we can help?