The media would like to have people believe that Toronto’s real estate market is in a post apocalyptic state. This is not so. There are Buyers and there are Sellers. Michael Manley, owner of Prudential Properties Plus in Toronto, has written an interesting article on the situation and current status of the market in downtown Toronto. Here it is.
Written by: Mike Manley, Owner of Prudential Properties Plus: Real Estate Brokerage.
Sunday October 19, 2008.
Market update October 19, 2008
TREB released sales statistics for the first 2 weeks of October and did a terrible job of explaining the statistics and so these were our local press headlines over the week-end.
Toronto Star. “Sun sets on real estate prices” …Toronto’s average resale price tumbles 15% in first ½ of October.
National Post “Toronto house prices plunge 15% “market is dead”
CTV local news at 6PM Friday. Toronto Sales down 21% Prices down 15%.
The impression the media gives is that all prices of all product types in all markets have dropped dramatically when this is just NOT the case.
What TREB failed to explain is that: yes sales were down but were down more in the higher price ranges than in the lower price ranges and so this skewed the average statistics lower. Also considering the financial market melt down we went through sales held up quite well.
Last year the over $500,000 market represented 17.9% of all sales. This year the over $500,000 market represented only 14.4% of all sales. This is a 20% reduction in price influence.
Last year the over $750,000 market represented 6.3% of all sales. This year this market represented only 3.9% of all sales, a 38% decline in influence.
The decline in sales and prices at the upper end of the market had more influence on the average price decline that the actual sales of the vast majority of properties. To figure out if declines are really taking place in each market segment in each market area you must look at each market and market segment in more detail.
Here are some more detailed examples of average and median prices for some of our Toronto markets.
This year’s figures are for the first 17 days of October while last years figures are for all of October.
C09 Rosedale detached: In 2007 the average price was $2,156,642, this year it is $1,466,250 down 32%. Last years sales 24, this year to the 17th 4. This shows the devastating effect of the upper market slowdown on both prices and sales.
CO1 Condoland: prices were up from $333,351 last year to $344,028. Town houses rose 17% in price from $319,340 to $373,785. Semi detached rose 16% from $624,918 to $727,000.
C08 Cabbagetown Condo Apt: average price in 2007 $326,466. Average so far in October 2008, $331,009, up 7%.
E01 Riverdale: The median price for Semi detached home rose form $416,000 to $432,750, up 4% and the condo median prices rose from $379,050 to $408,000, up 8%.
E02 Beaches detached: Average price in 2007 $670,473, in 2008 so far $696,333 up 4%. Condo average prices were up 36% from $356,143 to $486,875.
E03 East York: Condo prices increased from $154,654 to $194,273 up 26%.
These figures show that you can not lump all product types and all markets into an overall average.
Doing so does no justice to the reality of our market place.
In general the lower priced market is doing very well. The higher the price though, the tougher the market.
There are still lots of sales to be made. There are bargains in some market segments where the inventory is very high in relation to sales …look for those who have to sell and show no mercy.
