"Fundamentals." Real estate values are about fundamentals. When looking at Toronto, its not the real estate darling of the world because of speculation and risk. Its the real estate darling of the world because of great employment, natural habitat, low crime rate, excellent healthcare, wonderful public education, conservative banking, good quality construction, ample fresh water, multiculturalism, diversity of all kinds, growing infrastructure... need I go on?
When you're buying real estate, you have to look at the long term fundamentals. There has been a lot of speculation and a lot of headlines that have made people query the longevity of sustainable growth in the Toronto market. Here's the truth, the un-natural sky rocket that happened in January-to-April has calmed down. We are back to a natural, growing market and summer seasonality.
ReMax Hallmark has published the below press release looking at the current market conditions. Broker of Record, Ken McLachlan alongside the rest of the leadership team state that "“Average price will continue to increase at a healthy rate, albeit, at a more moderate pace than the first quarter of 2017”
Oh and by the way... I couldn't agree more.
Please see the full press release here:
For immediate release
Toronto real estate market remains strong with a 14.9% increase in average price. Active listings increased, leading to a moderation in price increases. Toronto, ON (June 21, 2017) – Contrary to some recent headlines, the Toronto real estate market remains strong with average prices increasing by 14.9% at the end of May 2017 compared to end of May 2016. According to the Toronto Real Estate Board, the average price reached $863,910 compared to $752,100, respectively. “Average price will continue to increase at a healthy rate, albeit, at a more moderate pace than the first quarter of 2017” says Ken McLachlan, Broker-Owner, RE/MAX Hallmark. “This lower increase is a result of an influx of inventory in April and May.” Inventory levels were at approximately one month worth of sales or less for each month of the year until May. At the end of May inventory levels stood at 18,477 homes which represents about 1.8 months of the sales in May of 10,196 homes. Traditionally, in the real estate industry, months of inventory value of up to 4 months has been considered a seller’s market. As buyers had more choice in May, compared to the prior four months of the year, they were taking a little longer to make their buying decision and accordingly the number of homes exchanging hands decreased by 20% from the all-time record set in May of 2016. “We are still in seller’s market territory and that is why prices increased double digits in May compared to last year” says Debra Bain, Broker-Owner, RE/MAX Hallmark. “Based on what we are hearing from our REALTORS ®, inventory levels are expected to increase slightly approaching the fall months, however we are expecting to stay in seller’s market or balanced market territory for the foreseeable future.” A balanced market typically occurs when there are 4 to 5 months of inventory and prices during those times typically increase mid-single digits. “Each subset of the market has slightly different fundamentals than the averages that are quoted, so it is critical to get accurate information from your REALTOR ®, prior to putting your home on the market, or placing an offer for a purchase.” says Gurinder Sandhu, Managing Partner, RE/MAX Hallmark. RE/MAX Hallmark Realty Ltd. is one of the largest real estate franchises in Ontario, with more than 1,200 sales associates operating out of 13 offices throughout the Greater Toronto Area, and the Ottawa Region. The team specializes in all aspects of real estate, including residential, recreational and commercial properties. RE/MAX Hallmark is firmly entrenched in the communities it serves through its involvement in Children’s Miracle Network and grassroots fundraising initiatives. Visit the RE/MAX Hallmark website at: www.torontohomesandcondos.com
For more information: Ken McLachlan, Broker-Owner RE/MAX Hallmark Realty Ltd. 416.565.4572 ken@remaxhallmark.com Gurinder Sandhu, Managing Partner RE/MAX Hallmark Realty Ltd. 647-969-5961 gurinder@remaxhallmark.com Debra Bain, Broker-Owner RE/MAX Hallmark Realty Ltd. 416.564-9918 debra@remaxhallmark.com
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RS.
Ravi Singh was name one of the most Interesting People in Real Estate by Inman News in 2016. Award winning Realtor with ReMax Hallmark and team leader at The Connexus Group.
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