JULY 2014 Market Report
July’s resale market performance was one of the strongest on record for the greater Toronto area, even though it was the third monthly drop in reported sales. In May 11,034 sales were reported, 10,158 in June and July 9,198. The monthly decline is consistent with seasonal patterns. The strongest month is usually May, with sales dropping during the summer months as both buyers and sellers focus on vacations and enjoying our limited, but warmer weather. A further drop in sales in August is also a part of the typical selling pattern.
Having said that the 9,198 residential re-sales achieved in July now has the greater Toronto market on track to post the strongest year in the history of statistics-keeping by the Toronto Real Estate Board. In 2007, the year before the recession, which started in the fall of 2008, 93,193 properties were reported sold.
On no occasion have sales ever topped 90,000 except for 2007. The second best year on record is 2011 with 89,096 residential properties reported sold. To date 57,910 properties have been reported sold in 2014. At this pace the year should achieve 94,000 to 94,500 sales making 2014 the best year on record.
Strong prices invariably follow strong sales markets. In July the average sale price came in at $550,700, 7.5 percent higher than the $512,286 recorded in 2013. The highest monthly sale price on record was achieved in May of this year. It came in at $585,037. It is not uncommon for the average sale price to decline in June and July. Expect the average sale price to come in at approximately $550,000 in August, before jumping to $ 575,000 or more in September. It is unlikely that the record average sale price of $585,037 will be exceeded during the remainder of this year.
In July all properties sold (on average) in 24 days. Although slower than June’s pace at 21 days, 24 days is exceptionally fast for July. For example last July it took 28 days for all properties to sell. In some trading areas days on the market were even faster. The east end neighborhoods close to the central core of the city remain frenzied. In neighborhoods like Riverdale, Leslieville, and the Beach the pace of sales taking place was on average a little over 13 days. As has been reported before, condominium apartment sales are not as quick as sales of detached and semi-detached properties.
Oakville continues to be the most expensive area to live in the greater Toronto area. The average sale price for all properties sold in Oakville in July was $771,535. In the City of Toronto central properties (excluding condominium apartments) were the most expensive for buyers to purchase. Detached homes sold, on average for $ 1,360,816. Semi-detached homes sold for $751,287. Not only did they sell for these strong prices, but sold quickly, in only 21 and 14 days respectively. All semi-detached homes in the central districts sold for 103 percent of the initial asking price.
Condominium apartment sales in the City of Toronto are continuing to accelerate. In July condominium apartment sales were up 13.4 percent compared to the same month last year. In June sales were up 21.4 percent compared to June 2013. The 13.4 percent increase in July was the largest of any housing type. Second were townhouse sales, which increased by 8.3 percent.
With average sale prices continuing to rise, condominium apartments may be the last refuge for some buyers, especially first time buyers. The average sale price for condominium apartments in July was $ 379,002, up 4.7 percent over July 2013. Compared to the average sale price for all other properties ($550,700), condominium apartment prices are approximately 45 percent less expensive. If interest rates were to rise, condominium apartments will become even more attractive.
Low inventory levels continue to be responsible, at lease in part, for the strong sales achieved this year. In July 15,187 new properties came to market. Although this number was 8.2 percent greater than new listing that were placed on the market in July 2013, at the beginning of August there were still fewer available properties for buyers to purchase than last year. Last year there were 20,514 properties available for sale. This year there are only 19,549, 4.7 percent fewer. Until the number of new listings coming to market outpaces sales over a period of months, sales will continue at their brisk pace and average sale prices will continue to rise by about 6 to 8 percent higher than the same month last year. Fortunately historically low interest rates are continuing to keep home ownership within the grasp of most buyers. A family with gross family income of just over $ 80,000 and a modest down payment still qualifies to purchase an average priced condominium apartment in the City of Toronto.
Of the 9,198 reported sales for July only 3,315 were in the City of Toronto. The other 5,883 sales representing 64 percent of all property sales were in the 905 region. It may be time and descriptively more accurate for the Toronto Real Estate Board to change its name to the Greater Toronto Real Estate Board.
prepared by: Chris Kapches, LLB, President and CEO, Broker
Chestnut Park Real Estate Limited, Brokerage | chestnutpark.com
Curb Appeal – Even At Night: Outdoor Landscape Lighting Will Make Your Property Shine
Whether you’re preparing your current home for sale, you’ve just moved into a new home, or you’re simply looking to give your beloved property a little face lift, well-placed outdoor lighting is one way to get that wow-factor you’re looking for. Although most homeowners overlook outdoor landscape lighting, or relegate it to the bottom of that very long home priority list, you’d be amazed at the impact even a small investment in lighting can have. Following are just a few tips to get you started.
There are 3 main lighting categories determined by function; overall lighting, which provides light to a large space; task lighting, which is used for a specific purpose like lighting a doorway at night; and accent lighting, which is used to call attention to a specific area for an aesthetic function.
Light bulbs come in a variety of colours based on the light intensity that their emit. The range of white light is on a scale from reddish tones to more intense bluish-white tones. Check bulb packaging to ensure your desired lighting colour.
There are a few options when it comes to what type of bulb to use. Incandescent bulbs have been most popular to date as they emit a pleasantly soft light, however they are known to consume relatively larger amounts of electricity and have a shorter lifespan. Halogen bulbs are a great alternative to incandescents as they produce a similar light with less energy consumption. Fluorescents, which have gained a reputation for their association with bad office lighting have improved in colour over the years and require less energy than Incandescents or Halogens. And finally, LED bulbs, while the most expensive option, have surged in popularity in recent years due to their extremely long life and extremely low consumption. There are also a variety of solar powered bulbs available on the market now, which of course do not consume any electricity, but can tend to be more temperamental based on your geographic location.
Keeping in mind the basics of outdoor lighting; overall, task, and accent, your lighting scheme is completely up to you. Walk around your property to determine which areas may require lighting for safety purposes, and which areas you’d like to highlight for aesthetic purposes. A few of the most common areas to light are:
– Pathways leading to the front, back, or side doors of your home welcome visitors and provide a safe entrance to your home.
– Doorways should be lit on either side or directly above, fulfilling all 3 functions of overall, task, and accent lighting.
– Stairways should be lit at night for safety purposes both for your own family and for visitors.
– Driveways, especially those in more rural areas without street lamps should be lit along the edges.
– Patios should have a mix of overall lighting for general use, and task lighting for cooking and/or barbecuing.
– Pools should be lit up at night both for ambiance and for safety.
– Gardens can mingle nicely with the right lighting, this is an area where you can get creative and showcase a prized rose bush or light up a flowering tree.
– Architectural features can be illuminated with accent lighting such as up lights to call attention to an interesting feature of your home, for example; original entrance columns, or a beautiful vine growing along a trellis.
Chip’s Recommendation: In the Greater Toronto Area, call
Outdoor Lighting Perspectives http://canada.outdoorlights.com/
Address: 15 Romina Dr., Concord, ON L4K 4Z9, Phone: (416) 931-1950
I have used Outdoor Lighting Perspectives and was delighted with the results. Pamela Vanston’s team provided stellar service and their product is the best quality. They asked for our input and then suggested a design that would show our property to its best, while keeping the budget at the forefront. Varied lighting fixtures were chosen for both function and aesthetics For only about 10% of our landscaping budget, our house is always well-lit and welcoming.