How’s the Market?

Five or ten years ago, the beginning of June signaled that the spring market was drawing to a close and people should start preparing for the sluggish summer market – fewer listings, fewer sales and lower prices. Things were pretty predictable. A few years ago, the spring market started extending into June and carrying on until July. That was only one small indication that the market was about to become much less predictable in many different ways.

If this year has shown us anything at all, it’s that it’s impossible to predict what’s going to happen in the market. Things were off the charts hot in January, February and March, which isn’t normally expected, but then the market started to show some signs of slowing down in April and May, when it would usually be taking off.

I wouldn’t say the market is slow now, but it certainly didn’t feel like a typical May. March felt like a typical May and May felt more like the end of June as the market started to balance itself out. We may have seen the peak of our spring market back in March and the start of the summer market in May, or we may see another burst of activity in June or July. Things are impossible to predict at the moment which makes it hard to figure out what to do if you’re thinking of buying or selling. (If you find yourself trying to figure this out, I’d suggest you read this for some help.)

Has anything really happened to change the market? I don’t think so, other than buyers’ perceptions of what may or may not happen. When buyers start hearing that the market may slow down and prices might fall, it’s not surprising for many of them to step back and pause. There are still tons of buyers out there, but a bunch of them are sitting on the fence waiting to see if prices do fall. I can’t blame them. I might do the same thing myself. But there’s no concrete reason for prices to fall other than that some buyers aren’t as motivated.

Current market conditions are based on buyers’ perceptions (that prices might fall) and emotions (fear of paying too much). When market conditions are based on perceptions and emotions instead of facts and reality, things become impossible to predict because how can one determine at what point perception becomes reality? Remember though, there’s one fact that never changes: people will always need a place to live. Eventually the buyers will climb off the fence and start buying again and the market will pick up. The question is when?

If you’d like to check out the numbers, take a look at the charts below.

Central Toronto – Market Overview

  Average Price % of List # of Sales Total Listings # of New Listings Average Days on Market
May ’16 $904,532 105% 2,283 3,530 3,519 19
Jun ’16 $874,834 104% 2,286 3,319 3,270 20
Jul ’16 $744,796 102% 1,755 2,904 2,489 21
Aug ’16 $737,422 101% 1,743 2,431 2,243 23
Sep ’16 $868,380 103% 1,747 2,584 2,795 21
Oct ’16 $857,596 103% 1,853 2,385 2,551 19
Nov ’16 $901,035 102% 1,740 1,874 1,986 19
Dec ’16 $790,734 101% 1,082 1,085 846 22
Jan ’17 $811,972 103% 963 1,235 1,533 21
Feb ’17 $986,604 107% 1,489 1,260 1,851 15
Mar ’17 $1,003,774 110% 2,166 1,507 2,951 11
Apr ’17 $1,080,388 110% 2,099 2,201 3,506 10
May ’17 $1,022,740 105% 1,958 2,889 4,037 12

 

Prices – John Wanless and Bedford Park Public School Neighbourhoods

There are five typical home styles in the neighbourhood north of Lawrence, east of Avenue Road, west of Mount Pleasant Road and south of Old Orchard Grove and Snowdon Avenue. Each typical home style is shown on the chart below. Please remember that factors such as house size, lot size and dimensions, condition and location, amongst others, affect selling prices.

Type of Home  No. of Sales Price Range  Ave. Price Date
  • 2 Bedroom
  • Bungalow
  • Mutual driveway
4 $1,318,000 – $1,623,000 $1,522,750 Jan ’17 – May ’17
  • 3 Bedroom
  • Semi-detached
  • No family room
10 $1,080,000 – $1,548,000 $1,327,500 Jan ’17 – May ’17
  • 3 Bedroom
  • 2 Storey Detached
  • No family room
6 $1,500,000 – $1,920,000 $1,754,000 Jan ’17 – May ’17
  • 3 Bedroom
  • 2 Storey Detached
  • Family Room
5 $1,653,000 – $2,041,000 $1,867,500 Jan ’17 – May ’17
  • Newer Construction
19 $2,418,000 – $3,030,000 $2,708,000 Jan ’17 – May ’17

 

Prices – John Ross Robertson, Lytton Park, Lawrence Park and Cricket Club Areas

JOHN ROSS ROBERTSON – Chudleigh Ave., Cheritan Ave., Chatsworth Dr., Glenview Ave., Glengrove Ave. W., Glencairn Ave.

LYTTON PARK – east and west of Avenue Road: Alexandra Blvd., Lytton Blvd., Strathallan Blvd., Cortleigh Blvd., Hillhurst Blvd. (almost all of these homes are on 50 foot wide lots)

LAWRENCE PARK – between Yonge St., Bayview Ave., Lawrence Ave. E., and Blythwood Rd. (almost all of these homes are on 50 foot wide lots)

CRICKET CLUB – between Avenue Rd., Yonge St., Wilson Ave., and Brooke Ave.

House Type John Ross Robertson  Lytton Park  Lawrence Park  Cricket Club 
  • 30 foot lot
  • 2 storey
  • 3 bedrooms
  • Private Drive
$2,000,000 – $2,500,000 Not found in this area  Not found in this area  $1,800,000 – $2,200,000
  • 30 or 40 foot lots
  • 4 bedrooms
  • Private Drive
 $2,200,000 – $3,200,000  Not found in this area  Not found in this area  $2,000,000 – $2,600,000
  • 50 foot lot
  • 4+ bedrooms
  • Private Drive
  • Solid Condition
  • Not Renovated
  • No family room
 $3,000,000 – $3,500,000   $2,600,000 – $3,000,000  $2,800,000 – $3,500,000 $2,400,000 – $2,800,000
  • 50 foot lot
  • 4+ bedrooms
  • Private Drive
  • Renovated
  • Family Room
 $3,500,000+   $3,000,000+   $3,500,000+  $3,000,000+
  • 50 foot lot
  • Land Value
 $3,000,000 – $3,500,000   $2,600,000 – $3,000,000 $2,800,000 – $3,500,000    $2,400,000 – $2,800,000

 

No comments yet.

Leave a Reply