The Stern Report
The freehold real estate market has not behaved in a traditional manner this year. Usually the spring market gears up in February and by mid May it starts to wind down for the summer. Instead, this year, the spring market got into high gear a little later than usual and surprisingly is still active even in July. It is less frantic than it was in the spring, though, so this summer is a good time for buyers to consider getting into the market before the heightened activity that starts up again in September.
# Of Houses Sold Graph
Year over year the number of houses that sold in each neighbourhood is up in some and down in others. Mostly, though, unit sales are down in a few of these areas because of lack of supply. In reality, the real estate market between $600,000 and $1,000,000 is insatiable and the pool of buyers still exceeds supply.
% Of Houses Sold Above List Graph
The number of houses that sold above the list price is lower in all areas in 2013 except Regal Heights. The mortgage rule changes that came into effect on July 1, 2012 with the intent to cool the housing market did have some effect. Nevertheless the percentage of properties that sold above the list price this year is still very high clearly reflecting a market in favor of sellers.
Average Days On The Market Graph
The average days on the market remained stable except in Forest Hill which reflects that buyers have greater choice due to higher supply in the high end segment of the market and buyers are taking their time to decide to buy.
Average Sale Price Graph
The most significant change in the average sale price took place in Regal Heights where it jumped 21.3%. This lovely family friendly neighbourhood is ideally situated smack in the middle of Hillcrest Village and Corso Italia infusing the area with diverse culture. I have been promoting this area as up and coming for over 10 years and this well deserved prediction has finally come to fruition.
The average sale price in Hillcrest Village reflects that the real estate industry's reference to its boundaries has expanded west to Oakwood Avenue and north to Vaughan Road which includes more lower priced homes than other subject areas. The average sale price in Prime Hillcrest Village for this same time period, though, is $742,442 for 2012 and $843,335 for 2013 a year-over-year increase of 13.6%. A house on one of Prime Hillcrest Village's many coveted streets like Hillcrest Drive or Humewood Drive could potentially have a market value upwards of 2 million dollars depending on its offerings.