Toronto Average Selling Price Dips
Toronto Real Estate Board President Paul Etherington announced that Greater Toronto Area REALTORS® reported 1,409 sales through the TorontoMLS system during the first 14 days of January 2015. This result was up by 9.8 per cent compared to the same period in 2014. Sales were up on a year-over-year basis for many of the low-rise home types and for condominium apartments as well.
“Despite the cold weather, home buyers remained quite active during the first two weeks of the New Year. Households continued to take advantage of the diversity of affordable housing options available throughout the Greater Toronto Area,” said Mr. Etherington.
The average selling price for January mid-month transactions, at $510,532, was down slightly in comparison to the same period last year.
“The slight dip in the average selling price reflects the fact that we saw a different mix of homes sold this year compared to last year during the first two weeks of January, as evidenced by a lower average listing price. The month-end MLS® HPI Composite Benchmark price and the average selling price will provide a clearer view on prices,” said Jason Mercer, TREB’s Director of Market Analysis.
Toronto Real Estate Market Report
GTA Realtors® Report Resale Housing Market Figures
Toronto Real Estate Board President Paul Etherington announced that Greater Toronto REALTORS® reported 92,867 residential sales through the Toronto MLS system in 2014, including 4,446 in December. The calendar year 2014 sales result represented a 6.7% increase over the 2013 sales figure of 87,049 and was just short of the record set in 2007.
"TREB's 2014 sales figures are a testament to the importance Greater Toronto Area households continue to place on home ownership. GTA households realize that home purchases have been a quality long-term investment. While home prices certainly increased substantially in 2014, the purchase of an average priced home remained affordable, in terms of the average household's ability to comfortably cover their monthly mortgage payments," said Mr. Etherington.
The average selling price continued to grow on a year-over-year basis in calendar year 2014, with an 8.4 per cent increase over calendar year 2013 to $566,726. This included a seven per cent increase in the December 2014 average selling price to $556,602. Throughout 2014, annual increases in the average selling price and the MLS® HPI Composite Benchmark were consistently reported on a monthly basis for most market segments, from detached homes through to condominium apartments.
"The strong price growth we experienced in 2014 can be explained with two words: listings shortage. The constrained supply of listings was especially evident for low-rise home types like singles, semis and town houses. The number of households looking to purchase these home types increased, while the number of homes from which they could choose decreased. This situation resulted in more competition between buyers and more aggressive offers," said Jason Mercer, TREB's Director of Market Analysis.
Satisfaction vs. Sentiment
Have you ever filled in one of those, ‘we value your feedback’ customer satisfaction surveys at the end of a meal or a service call? Businesses use them to determine how customers rate the services they provide. The theory being that satisfied customers are the end game. Deliver on expectations and people will surely come back — and send their friends.
In a world of infinite choices customer satisfaction is no longer the gold standard. It’s the minimum requirement, the ticket of entry, something we have come to expect. And most businesses want to deliver on expectations.
Satisfaction is the metric of business mechanics, the systems and processes, the operations and moving parts. But beyond that is sentiment — how do you feel about the how the business treated you? Sentiment is the pulse of business and a brands heart and soul. Satisfaction can be measured with tick boxes while sentiment is perceived and felt. The distinction is the difference between a service that works and one that we feel we couldn't live without.
As customers, we demand to be satisfied and if dissatisfied we know we can vote with our feet. But what we long for deep down is something that we can’t and don’t articulate. The unexpected. Surprise and delight, the feeling of experiencing something more than was anticipated. Something that can’t easily be measured.
At Select/Plan Real Estate customer/client satisfaction is important to us — so important that it determines how much you pay us. But we don’t just deal in expectations. We immerse clients in the process of selling their home to deliver unexpected experiences that change hearts, not minds.
The opportunity of a more rewarding sale of your home — both financially and emotionally — is open to you.
Average Toronto Home Price Up 8.4%
Toronto Real Estate Board President Paul Etherington announced that Greater Toronto Realtors® reported 6,519 residential transactions through the TorontoMLS system in November 2014. This result was up by 2.6 per cent compared to 6,354 sales reported in November 2013. Through the first 11 months of 2014, total sales amounted to 88,462 - up 6.6 per cent compared to the same period in 2013.
While the trend of year-over-year sales growth continued, the supply of listings remained constrained, with active listings at the end of November down in comparison to last year.
"Even with a constrained supply of homes for sale in many parts of the Greater Toronto Area, buyers continued to get deals done last month. Households remain upbeat about home ownership because monthly mortgage payments remain affordable relative to accepted lending standards. This is coupled with the fact that housing has proven to be a quality long-term investment," stated Mr. Etherington.
The average selling price for November transactions was up by 7.4 per cent year-over-year to $577,936. The year-to-date average price was up by 8.4 per cent to $567,198. The MLS® Home Price Index Composite Benchmark price for November was up by 7.7 per cent compared to a year earlier.
"The robust average price growth experienced throughout 2014 has been fundamentally sound, with demand high relative to supply. Strong competition between buyers has exerted upward pressure on selling prices. Barring a substantial shift in the relationship between sales and listings in the GTA, price growth is expected to continue through 2015," said Jason Mercer, TREB's Director of Market Analysis.
See the Toronto Real Estate Board's Market Watch Report »
Average Toronto Home Costs $579,834
Toronto Real Estate Board President Paul Etherington announced that Greater Toronto REALTORS® reported 3,350 sales through the TorontoMLS system during the first 14 days of November 2014. Compared to the same period in 2013, this result represented an increase of 8.3 per cent. Over the same period, new listings were also up, but by a lesser 2.2 per cent.
“Both first-time buyers and existing homeowners who decided to change their housing situation continued to make deals on ownership housing across the GTA in the first half of November. This points to the fact that home ownership remains affordable and that buyers remain confident in ownership housing as a quality long-term investment,” said Mr. Etherington.
The average selling price for sales during the first two weeks of November was $579,834, which was up by 7.6 per cent compared to the average of $538,755 reported for the same time frame in 2013. The detached market segment led the way in terms of year-over-year price growth, both in the City of Toronto and surrounding regions.
“Sellers’ market conditions continued to be experienced for low-rise home types during the first 14 days of November. In many neighbourhoods across the GTA, there are a number of buyers competing for a constrained supply of singles, semis and townhouses. This is why, more often than not, annual average rates of price growth for these home types have been in the high single digits or low double digits this year,” said Jason Mercer, TREB’s Director of Market Analysis.
Toronto Prices Up 8.9% in October
Toronto Real Estate Board President Paul Etherington announced that Greater Toronto Area REALTORS® reported 8,552 sales through the TorontoMLS system in October 2014. This result represented an increase of 7.7 per cent compared to October 2013. New listings were also up on a year-over-year basis, but by a lesser 3.4 per cent.
“Strong growth in sales was evident across all major home types during the first full month of fall. This suggests that there are a lot of households across the Greater Toronto Area who remain upbeat about the benefits of home ownership over the long term, whether we’re talking about first-time buyers or existing home owners looking to change their housing situation,” said Mr. Etherington.
The average selling price for October 2014 transactions was $587,505 – up 8.9 per cent compared to the average of $539,286 reported for October 2013. The MLS® HPI composite benchmark price was up by 8.3 per cent over the same period. Low-rise home types, including singles, semis and town houses, continued to be the driver of year-over-year growth in the average price and the MLS® HPI composite benchmark.
“While sales growth has tracked strongly so far this fall, many would-be home buyers have continued to have difficulties finding a home due to the constrained supply of listings in some parts of the Greater Toronto Area, particularly where low-rise home types are concerned. The resulting sellers’ market conditions are forecast to drive strong price growth through the remainder of 2014 and indeed into 2015 as well,” said Jason Mercer, TREB’s Director of Market Analysis.
See the Toronto Real Estate Board's Market Watch Report for October »
Average GTA Sale Price Up 8.8%
Toronto Real Estate Board President Paul Etherington announced that residential sales reported through the TorontoMLS system during the first 14 days of October were up by 12.2 per cent compared to the same period in 2013. Over the same period, new listings entered into Toronto MLS® were up by a lesser 5.9 per cent.
“We have seen a strong hand-off from the third quarter into the fourth quarter, as sales for all major home types were up. This suggests that a great diversity of home buyers remain active in today’s market, from first-time buyers looking for affordable home ownership options through to high income households looking to purchase a luxury property,” said Mr. Etherington.
The average selling price for sales during the first two weeks of October was $583,719 – up by 8.8 per cent compared to the same period in 2013. Overall price growth continued to be driven by the low-rise market segments, including detached and semi-detached houses and townhouses.
“Strong annual rates of price growth for low-rise home types were sustained, as sales growth continued to outpace growth in new listings. Sellers’ market conditions are expected to remain in place for the remainder of 2014 and into 2015 as well. This means that high single-digit rates of price growth for singles, semis and townhouses will likely remain the norm over the next few months,” said Jason Mercer, TREB’s Director of Market Analysis.
How MLS® Works
Thousands of Realtors® - Hundreds of Real Estate Companies One Common Marketing Platform - the Multiple Listing Service
The Multiple Listing Service® (MLS®) is a cooperative marketing system which allows licensed Realtors® from all member real estate companies (also called brokerages), to share information about residential real estate that is for sale. Regardless of which brokerage an agent works for, he or she accesses the same database through their real estate board.
Toronto Real Estate Board (TREB) is the MLS® service provider in the GTA region from Clarington, to Georgina to Orangeville to Oakville.
After a Realtor® has listed a property, they are required to enter the listing into the MLS® database for all other Realtors® to view and consider. Therefore, when you list your home with a Realtor® on the MLS® system, you have immediately employed an army of salespeople to aid in the sale of your home.
In the Toronto area, the vast majority of MLS® transactions involve two Realtors®, the listing agent and a buyer's agent. The Toronto Real Estate Board is a cooperative association representing approximately 40,000 Realtors®.
Most, but not all, home buyers are represented by a Realtor® and if you want those Realtors® to show your property, you need to give them an incentive to do so. The amount of cooperation you receive from those Realtors® will depend, in part, on the amount of buyer's agent commission you offer. The most common buyer's agent commission offered in the Toronto area 2.5% of sale price (+HST).
While this may be the most common commission offered buyer agents, you may attract Realtors® to your home by offering less. Remember, many Realtors® may be left with no other option than to show your home. Their client may be insisting on seeing the property, and rather than losing the client and earning nothing, they will show your home.
So why do homeowners often pay thousands of dollars in commission to sell their property through the MLS® System? Because it works! Without rival, the MLS® System is the most powerful and effective marketing tool available to sell homes. Now, more than ever, the MLS® System is available to all types of home sellers.
You can search the residential properties listed on the Toronto Real Estate Board's MLS® system here »
October 9, 2014 | Permalink