For this month’s episode of Market Watch we will be talking about how the month of March played out. The Toronto Real Estate Board (TREB) released their market watch report for last month, and we’re seeing how well the year is going.
Contrary to the previous months this year, new listings were actually up by 15.2% in the year-by-year comparison as seen on TREB. The strongest growth in new listings were seen in the detached homes and the condominium sectors. The biggest drop witnessed in March is once again, the decrease in the number of active listings at 35.2%.
As shown in the graph above, the month of March showed a sharp decrease in the percentage of sold listings with 70.8%, almost identical to the percentage from the previous year. The biggest yet predicted news this month is the increased average selling price, moving up from $875,983, to $916,567, a substantial 33.2% increase from March 2016. The increase in the average price is a result of high buyer competition.
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, the average inventory for the GTA area for March 2017 has plateaued since last month showing no change in the turnover of listings.
In Mississauga, the average day on market (DOM) has reduced to 8 days, while in the City of Toronto the DOM sits at 11 days. The former is stocked with 0.9 months of inventory while the latter has an increase of 1.2 months of inventory, the increase in the new listings can be attributed to Toronto’s condo craze.
In comparison to the previous two months we’re seeing a slight pattern change in the market: higher prices, but now with more listings. The asking prices we see in both Toronto and Mississauga have both increased 4% since February 2017 (112% and 111%respectively), changing the definition of asking price to more of a guideline.
For those considering to buy, take a moment to deconstruct your situation with your real estate agent. Are you financially ready to to negotiate against other offers in this market? If not, then stay put. Making a transaction you’re not fully on board with in this market will be an investment you will regret.
This is why it is so important to choose the right agent; Sellers must choose someone who can provide guidance in the current situation and understands what their expectations from this transaction. Buyers must find someone who can advise them, and knows when to push and when to hold back in this biased market.
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.
Source: All statistics are taken from the Toronto Real Estate Board 2017.