In this episode of Market Watch we’re going to talk stats and how these stats can help you. The Toronto Real Estate Board (TREB) released their market watch report for 2016, and we’ve seen a significant change in the market. The first important piece of information they reported was that 2016 showed a 11.8% increase in sales in comparison to 2015. This is a rapid growth when looking back at the market activity from previous years.
The strongest growth has been seen in the condominium apartment sector followed by detached homes. The number of new listings entering the market had been rapidly increased since last year, however by the end of 2016 new listings were down by 4%l.
In December 2016 alone the number of sales were 5338, which is a 8.6% increase from December 2015, and a 20% increase for the average sales price throughout the year.
As shown in the graph above, 2016 has shown significant improvement in the percentage of sold listings, with a record high of 86% for the month of December.
The average selling price in 2016 was result of a 17.3% climb from 2015, ending with an average of $729,922.
For those who are unaware or need a refresher as to what months of inventory are, it refers to the time it would take to sell all current listings with no new listings being added. As seen in the graph above, 2016 has had the lowest inventory we’ve seen in the past 5 years.
In Mississauga, the average day on market (DOM) was approximately 19 days, with 1.1 months of inventory. For the City of Toronto the DOM was 21 days with 1.4 months of inventory.
So what’s the point of all this information? As a buyer or a seller it’s important to understand the different steps to take when making a transaction this year. The main point to emphasize here is that the growth of sales has overtaken the growth of new listings. This is good news to sellers who can be confident in putting and selling your property on the market since such a high demand exists. For buyers, it means you have to act fast!
However, for both parties it is important to choose the right agent; For sellers: choose someone who can help you receive the full value of your property without leaving money on the table, and for buyers: find someone who knows to strike when the iron’s hot. The latter is especially important since many potential buyers were disappointed with the lack of listings available to them.
Steven Ho is the ideal realtor for any client, and here’s why: In a townhouse complex, Steven sold 30% of the 9 listings available, whilst 6 separate agents sold the remaining 6 listings. The average DOM for the 6 listings was 14 days, whilst for Steven’s listings the average DOM was only 9 days.
In terms of sold prices, the 6 other agents sold for roughly $489,000 while Steven Ho sold for $533,000, a difference of $44,000! A significant margin that is potentially lost with other realtors which could go to the payment of your next home. Here’s another reason to go with Steven: The other agents sold their listings for 102% of the asking price, which is a fair amount to gain no doubt. However Steven outperformed the other agents once again by selling his listings for 106% of the asking price. An additional 4% on a $500,000 home is $20,000!
People think all agents are the same, but different agents yield different results; picking Steven Ho will help you get the best results.