Etobicoke Real Estate Market Update – May 2018

May was a very active month for Etobicoke real estate. The average sales price for both detached houses and condos increased in May over the prior month. Both houses and condos reached a new high average price for the year in May. This is the second consecutive month where we’ve seen both markets reach new highs.

The average detached home price increased by 2%. The increase is due to a combination of prices going up and more expensive homes on average selling in the month of May.  The average price of a condo was up more than 10% from the prior month. Again, this increase can be attributed to a combination of general price increases and the more expensive condos selling in the month of May.

The number of detached homes and condos sold was up compared to the prior month. The sales volumes of both condos and detached homes was the highest that it’s been in 2018. Buyers seem to be ready to pull the trigger and make their purchase.

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 May, the ratios were 2.29 in the detached home market and 1.82 for the condo market. This means the supply of both detached homes and condos is still tight.

Detached Home Market Trends

• There was an increase in sales volume (higher demand).
• The number of listings on the market increased slightly in May (increased supply).
• Well-priced homes in popular neighbourhoods are selling with multiple offers over the asking price. A beautiful century home in Mimico was snatched up in days.
• Home price trends are really neighbourhood specific with some neighbourhoods increasing faster than others.

Condo Market Trends

• The volume of condos sold was up in May.
• Prices reached an all time yearly high.
• The ratio of condos for sale versus condos sold is very low, which means there’s more demand than there is supply. However, the number of condos currently on the market is up substantially. This is perhaps a sign that prices will start to level out.
• 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

May  2017 – May 2018

Etobicoke Sales Volume of Homes and Condos Sold

May 2017 – May 2018

Detached Home Neighbourhood Average Prices May 2018

Condo Neighbourhood Average Prices May 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’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!