A recap of May 2019
Here we are – it’s June already, and we’re halfway through 2019! When did that happen? I hope you’ve got some great plans for the warm months ahead. We’ve certainly waited long enough for them.
We had a sluggish start to the year, but that’s changing pretty dramatically – the last two months have seen a pretty big spike in the number of sales. April sales were up 16.8% from April 2018, with active listings down 1%. That intensified in May, with an 18.9% year-over-year change, and active listings down 4.3%.
With this trend in increased sales and fewer listings, we’re going to see even more pressure on prices. May saw the average house price go up 3.6% over the same time last year. That’s moderate, but we will probably be seeing greater increases in the months ahead.
Freehold sales are now driving the market
For the first time since 2017, the surge in sales and price growth is led by the freehold market – detached, semis and towns – and not condos. However, the condo market continues to do well, of course, with prices up 6.6% over last year.
Inventory is dropping
However, as the market tightens and availability plummets, people are reluctant to list their homes for fear of not being able to find a new one – which reduces inventory even more. In this kind of market, it’s definitely better to buy first, but not everyone has the means to do that. So lots of people are simply staying put.
I’d be interested in seeing how many house sales end up being estate sales over the next few years. People are staying in their homes longer because they can’t find something smaller. I’ve actually worked with several buyers who were interested in downsizing, but when they saw what was out there, they decided against it – the classic “Love It or List It” scenario.
The Toronto market is still going strong
Market factors in the GTA remain robust. Population growth continues. Interest rates remain low, and the employment rate is good. As a result, people want homes in the city, and that’s not going to change anytime soon. Plus, with our basketball team so high profile lately (GO RAPTORS!) Toronto is really on the world stage, with tons of positive press about the city – including a fun spot on Jimmy Kimmel. Showing people how great Toronto is definitely won’t hurt the real estate market.
Two exciting new developments: The Well and The Crosstown
There are a couple of big developments we’re pretty excited about right now – they’re both poised to infuse some much-needed residential square footage into the local housing market. The Well, by Tridel/Riocan, is being built on the old Globe & Mail site at Front and Spadina. Phase1 is launching at the end of June with three towers, 700+ units and over 500,000 square feet of retail. Prices are around $1,300/sf.
Another development we have our eye on is The Crosstown by Aspen. It’s going up at Don Mills and Eglinton on the old Celestica site (which is massive), with plans that include nine towers, 3,800 residential suites, retail space and an underground connection to the LRT. It promises to bring a decidedly urban vibe to an area that has always been the epitome of urban sprawl.
If you’re interested in getting in on one of these developments, give us a call. And, of course, if you have any questions neighbourhoods, market trends, investment options or anything else real estate related – we’re happy to talk.
Got questions about neighbourhoods, market trends, investment options or anything else real estate related? Let’s talk.
