Etobicoke Real Estate Market Update – March 2018

Spring has sprung in the Etobicoke Real Estate Market. In March, more buyers pulled the trigger and bought a home. Sales volume for both detached homes and condos were up over January and February figures.

The average number days on the market decreased for detached homes and condos. This may have been partially driven by buyers who had been pre-approved for a mortgage under the 2017 rules and wanted to buy before their pre-approval expired.

Prices in the two markets went in different directions, but it’s not what you may have expected. The hot condo market, where we have seen prices climb month over month, took a breather and prices actually decreased from where they were in February. Prices in the detached home market increased slightly in March.

The ratio of the inventory of homes for sale versus the number of homes sold is an important indicator of supply and demand. A ratio of anything less than 4  typically means that we’re in a sellers market. A ratio of 4-5  is a balanced market. A ratio above 5 is a buyers market. In March, the ratios were 1.68 in the detached home market and 1.19 for the condo market.

This was the first time this year that we saw this ratio dip below 2 in the detached home market which means the supply of homes is tight. In the condo market, the ratio of homes for sale versus the number of homes sold was very low.

Detached Home Market Trends

• In terms of what sold, the volume of homes sold in March was up 31% over February figures (higher demand).
• The number of listings on the market increased slightly in March (increased supply).
• Well-priced homes in popular neighbourhoods are selling with multiple offers over the asking price. One of our recent two-bedroom bungalows in the Queensway sold within six hours of hitting MLS!
• When it comes to prices, overall, the average price was up slightly in March over February. However, this really is neighbourhood specific. Some neighbourhoods are down and others are up.

Condo Market Trends

• The volume of condos sold  was up in March. Prices slid down a bit after many months of consecutive increases.
• The ratio of condos for sale versus condos sold is very low, which means there’s more demand than there is supply. This typically means we are in a sellers market and prices will continue to climb. It’s beginning to feel like the market we saw for detached homes in the first quarter of 2017.
• With the new mortgage rules in place and detached home prices being simply too high for some buyers, condos often end up being the best option.
• Bidding wars are now more commonplace in the condo market. Be prepared!

The charts below give you a look at the trends in volumes and sales prices over the past year:

Etobicoke Average Sales Price of Homes and Condos

March  2017 – March 2018

Etobicoke Sales Volume of Homes and Condos Sold

March 2017 – March 2018

Detached Home Neighbourhood Average Prices March 2018

Condo Neighbourhood Average Prices March 2018

Our Tips for Buying and Selling This Spring

So what does this mean if you’re thinking of buying or selling. We’ve got some tips to help you decide what to do.

1. Thinking of selling your home soon?

Many sellers have been holding off putting their home on the market in the hopes that prices will increase. The inventory of properties continues to be very low. If you’re thinking of selling, it’s good to list when the inventory is low as it means you have less competition.

There are buyers out there ready to purchase, but they don’t want to buy an overpriced home. You need to price your home right for the current market. It also needs to be staged to look its best and requires maximum exposure so that all potential buyers see it.

2. Are you looking to upgrade from a condo to a detached home?

Don’t wait, the time is now! You don’t want to look back in six months and think If only I’d made the move back in the spring.  You have a property that has appreciated in value more than the one you’re looking to buy. Based on March, we can see that the delta has narrowed. Condo prices decreased and detached home prices increased for the first time in six months. You’ll still get more bang for your buck than you would have this time last year. It really is still an ideal time to make a move.

The one potential downside of today’s market is that the inventory of both detached homes and condos for sale in Etobicoke is low. There are still many overpriced homes on the market where sellers are hoping to get the prices of one year ago. It’s advisable to work with an agent who knows the market to help you with the transition and avoid overpaying.

3. Are you a first-time buyer and wondering where to start?

If you’re beginning your search, one of the first things to do is to get pre-approved for your mortgage. This way, you’ll know exactly how much you can afford and avoid disappointment. The best time for you to buy is yesterday and the second best is today. Don’t wait.

4. Are you deciding whether to buy or sell first?

We delved into this topic in a recent blog post, but in general, it’s a good idea to sell first. You’ll know how much you have to spend and you won’t have to settle for a lower price if it ends up taking a long time. If you do buy first, you could consider adding the sale of your home as a condition in your offer. Unconditional offers were the norm for a while but sellers are more open to considering offers with these types of condition in today’s market.

If you’re thinking about buying or selling in the near or far future, we’re here to help. Get in touch with us today!