The Etobicoke real estate market continues to evolve to uncharted territories. For many years, Etobicoke’s house market out-performed the condo market. In fact, it wasn’t too long ago that many predicted that there would be a crash in the condo market due to overbuilding. Well, guess what? That market is now outperforming the housing market in our Etobicoke neighborhoods. Here’s what we saw in August:
Detached Houses:
- Since July 2016: prices down 4%
- Since April 2017: prices down 16 %, or over $175,000 for the average priced detached house
Condos:
- Since Sept. 2016: prices up 17% or over $65,000
- Since March 2017: prices down 6% or almost $30,000
The charts below give you an overview of how the sales prices and volumes have been trending over the past year:
Average Sales Price of Homes and Condos
August 2016 – August 2017
Sales Volume of Homes and Condos Sold
August 2016 – August 2017
What Do the Numbers Mean?
The effect on house prices since the Wynne government introduced changes in April has been severe. However, condo prices seem to be holding, despite a lower volume of sales.
The house market is now considered to be a Buyer’s Market, where Buyers wield most of the power. The condo market, on the other hand, is still firmly in Seller Market territory.
So what does this mean? This might be an awesome time to sell a condo and upsize to a house! It has been a long time since a Toronto Buyer/Seller was able to take advantage of the market and be in control during both a sale and a buy.
Why Is the Condo Market Doing So Well?
There’s definitely no sign of the condo bubble bursting any time soon. So why is the condo market doing so well, in spite of all the changes happening? Well, there are a few reasons:
- Affordability: The condo market started to heat up last fall. Rapidly rising house prices caused more people to move from the house market into the condo market. What we’re seeing is a continuation of that trend.
- Investors: Investing in the Etobicoke real estate market continues to be a popular option for both residents and non-residents. We have a red-hot rental market and there are relatively few options for better ROI.
- Location, location, location: Torontonians continue to want to live near where they work and play, and there’s no denying that many of Etobicoke’s condos are in prime locations with easy access to downtown.
The one thing that’s for sure is that the market will continue to evolve. However, no one can really predict which direction it will take. At the end of the day, it’s best to move where and when it makes most sense for you and your family, rather than try to time the market.
If you’re thinking of buying or selling this fall, we’re here to help. Get in touch with us today!
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