There’s good news for anyone that’s looking to sell their home in Toronto – and perhaps a little bit of bad news for those that are looking to buy one. The Toronto Real Estate Board has issued their report for resale housing figures in the GTA and it shows that those selling their home in Toronto are getting 100% of the asking price; at least if it’s a single-family detached that they’re trying to unload.
The price of owning a home in Toronto has been going up for some time, and last month home sellers were realizing 99% of their asking price; most notably in areas such as old Toronto. Just a couple of weeks later, and now with the sale price at full asking, it’s leaving many wondering how they’re ever going to be able to afford a mortgage in the city; and let’s not forget that they’re already battling very high home prices, with the average price being around $500,000. But those who are looking to buy a home might be better off turning away from single-detached home and turning towards condos – a sector of the Toronto housing market that’s not as hot at the moment as detached homes, and aren’t as expensive.
Condo prices in Toronto in mid-March averaged $336,397 – more than $150,000 less than the average home! Even when looking at what some are calling “over-valued Toronto homes,” that’s practically a steal when compared with the rest of the market. And even though that percentage is still 4% higher than it was in February, it’s also 1.4% lower than it was in February, showing that the balancing act might be on its way and that properties might be returning to normal.
The reason for this, says one Toronto mortgage broker, is because builders and investors are starting to realize condos aren’t as hot as they once were, and now their owners or developers just want to get them off the market. Wojciech Pianka says, “I’m especially seeing it at the high-end, with developers offering very high Realtor commissions for properties that have sat on the market for quite a while. Some of those condos are also selling for less now than they did pre-construction, meaning investors are having to sell them for less than they paid.” And it’s no wonder that investors particularly want to unload their condos as they continue to sit on the market longer. In February, a home would sit on the market for only 24 days before being sold; whereas condos averaged 29 days on market before selling.
