Baby, we got a bubble!?

[James]

^ Yes, and how quickly that average went from around $500k to $750k, hasn't it? It's a good thing our salaries have gone up by that same percentage otherwise I don't know how we'd be able to afford those homes!

 

[interested]

Again I wonder does the increase in price reflect the sudden rush to take advantage of 2.99% 5 year mortgages and all the talk about further tightening? Or will it persist. I note a seasonality to prices with them starting to rise from January to May with there being then a bit of a lull and trending down a bit. I wonder if in May we will still be beyond last years figure of $485K and exceed the $500K as an average?

 

[drewp]

The 2.99% rate definetely got the ball rolling sooner than it usually would. The spring market usually starts in February, but with the mild winter we have had I think more people started their search earlier.

The funny thing is mortgage brokers were advertising 2.99% from last year. I think the media really plugged this 2.99% so people thought they had to buy now instead of waiting unitll the spring market.

 

[Eug]

The 2.99% rate definetely got the ball rolling sooner than it usually would. The spring market usually starts in February, but with the mild winter we have had I think more people started their search earlier.

The funny thing is mortgage brokers were advertising 2.99% from last year. I think the media really plugged this 2.99% so people thought they had to buy now instead of waiting unitll the spring market.

2.99% is a relatively new thing. Last year it was a mostly limited specialized price with certain brokers and small lenders. This year it was BMO, TD, and RBC promoting it.

^ Yes, and how quickly that average went from around $500k to $750k, hasn't it? It's a good thing our salaries have gone up by that same percentage otherwise I don't know how we'd be able to afford those homes!

Here are the average prices overall over the years.

http://torontorealestateboard.com/m...storic_stats/pdf/TREB_historic_statistics.pdf

In the 5-year period from 2006 to 2011, home prices have gone up 32.2% or about 5.75% per year.

 

[CN Tower]

Nice jump!

http://torontorealestateboard.com/market_news/market_watch/2012/mw1201.pdf


2012 2011 % Chg.
Sales 4,567 4,199 8.8%
New Listings 9,655 8,937 8.0%
Active Listings 11,009 12,107 -9.1%
Average Price $463,534 $425,762 8.9%
Average DOM 32 36 -9.9%

Although I personally prefer the median stats, that is one monster jump inToronto MLS Average Price!

Way to go Toronto! We are again defying the odds!

 

[interested]

If indeed median prices do reflect what is being shown in this data I agree with CN Tower. Definitely not compatible with an indication of any slowdown. Perhaps CN you could do a similar analysis for C01 district in Toronto, the downtown core, which many follow here and wonder about since it is the area in which most of the downtown condos are.

 

[PinkLucy]

The Home Price Index launches on Monday: http://homepriceindex.ca/coming_soon_en.html

 

[James]

...
Here are the average prices overall over the years.

http://torontorealestateboard.com/m...storic_stats/pdf/TREB_historic_statistics.pdf

In the 5-year period from 2006 to 2011, home prices have gone up 32.2% or about 5.75% per year.

Do note that TREB's report is for GTA, which includes 905, and is for all housing types, not just detached homes. I don't have figures in front of me, but for single detached family homes in the 416, I believe that appreciation has been greater than 5.75% per annum.

 

[rbt]

^ Yes, and how quickly that average went from around $500k to $750k, hasn't it? It's a good thing our salaries have gone up by that same percentage otherwise I don't know how we'd be able to afford those homes!

Anecdotally, the $150k/year crowd seems to be doing okay for bonuses and such.

 

[Eug]

Do note that TREB's report is for GTA, which includes 905, and is for all housing types, not just detached homes.

Yes, that why said, "average prices overall".

I don't have figures in front of me, but for single detached family homes in the 416, I believe that appreciation has been greater than 5.75% per annum.

Median detached price in Dec. 2006 was $359500 for the GTA.
Median detached price in Dec. 2011 was $493000 for the GTA.

That's a difference of 37.1%, or 6.5% per annum.

For the 416, I don't have the data.

 

[cityplaceguy]

Home prices are seeing great gains as usual, nothing to worry about here. Income has also gone up and people have more cash around. I hate people always thinking the world is ending and markets will crash, homes in Forest Hill will be going for 150K etc LoL. I know who you people are and you have been saying this since the 90s and look what you missed out on.

Now is a great time to buy

 

[cityplaceguy]

Yeah let us not forget his philosophy "Forget the rest get the best!"

Just like Doctors and Lawyers, Realtors have to prospect for clients.

 

[ILuvTO]

TREB: Strong Sales/Price Growth Continue in 2012

Greater Toronto REALTORS® reported 4,567 sales through the TorontoMLS® system in January 2012. This number was 8.8 per cent higher than the 4,199 sales reported in January 2011. Sales growth was strongest for low-rise home types in the regions surrounding the City of Toronto.

The average selling price for January 2012 transactions was $463,534 – up by almost nine per cent compared to January 2011.

416 detached: $743993 (+15%)
905 detached: $530129 (+5%)
GTA detached: $586098 (+8%)

416 condo: $343835 (+5%)
905 condo: $272103 (+7%)
GTA condo: $321475 (+5%)

Yes folks, it's nearly 3/4 of a million bux for an average detached home in the 416 now.

Thanks for posting Eug! Truly phenomenal results. Toronto RE continues to chug along.

 

[redfirm]

Home prices are seeing great gains as usual, nothing to worry about here. Income has also gone up and people have more cash around. I hate people always thinking the world is ending and markets will crash, homes in Forest Hill will be going for 150K etc LoL. I know who you people are and you have been saying this since the 90s and look what you missed out on.

Now is a great time to buy

CondoGeorge, do we know true identity of this entertainer?

 

[Eug]

LOL. I found this article somehow amusing.

Toronto real estate so hot worn city-owned houses rake in $602,000 more than the asking prices

The City of Toronto has cashed out big time on its sale of three rundown Crawford St. homes that went for a combined $602,000 over asking price Friday.

Some 72 bids were registered on the three properties. One battered, boarded-up brick semi went for $265,000 over the $495,000 asking price all on its own.

The sales, and the frenzied demand for what were considered to be well-priced but dilapidated properties needing major renovations, sent a buzz through Toronto’s real estate community Friday afternoon when the winning bids were announced.

“It basically shows that there is a lack of supply on the market and, until that changes, prices are going to continue to rise,†said realtor Brian Prashad, who had one client bidding on the biggest of the three, a three-storey home listed for $995,000 that went for $1.111 million.