The Stern Report
The freehold real estate market experienced a record year once again in 2014. The market was consistently a strong seller's market with little reprieve for buyers. Prices are up between 6% to 8% in most areas of central Toronto. The most recent interest rate reduction will continue to fuel the housing market for a while still. I suspect the federal government may intervene if things get out of control.
It’s interesting to note that unit sales increased a whopping combined 25% in areas with higher end homes such as Cedarvale, Lytton Park, Forest Hill and Chaplin Estates. It's clear that buyers moving up to a bigger house and taking on more debt is on the rise.
Unit sales in Hillcrest Village went up 25% and it's still one of the most popular areas (in central Toronto) for properties under a $1 million.
In 2013 most of these areas had a lower percentage of houses that sold above the list price as compared to 2012. The trend reversed significantly in 2014 with most areas experienced strong bidding wars and more houses selling above the list price. The area that experienced the highest bidding was Lytton Park. This does not surprise me as I have been saying for years that Lytton Park offers great value as compared to other areas with luxury homes.
The average days on the market was lower in most areas with Lytton Park and Chaplin Estates experiencing the quickest turn over proving that move up buyers were active in large numbers.
When an average sale price shows a decline in an upward market such as 2014, it basically means that more lower priced homes have sold in that area that year. It does not mean that prices have declined.
The most significant change in the average sale price took place in Allenby and Chaplin Estates. Their popular school areas and central location bolster their numbers.
Forest Hill was also up significantly showing that luxury home sales were on the rise in 2014 as was reported in the media numerous times.
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.
Nevertheless, just as I predicted in 2013, for the first time ever a house on one of Prime Hillcrest Village's many coveted streets sold for over 2.1 million dollars in 2014.