October was a strong month in terms of number of homes SOLD for both detached homes and condos. The inventory of homes on the market increased for both condos and detached homes. Buyers had more choice than they’ve had in some time. This was good news for home seekers in Etobicoke.
The average sales price for detached houses decreased in October over September while the average price for a condo continued to climb, particularly in our Humber Bay neighbourhood. The delta price to own a detached house versus a condo continued to narrow. This is great news for anyone wanting to upgrade from a condo to a detached home.
The average detached home price decreased by 4% from September; however, it was up slightly from October of last year. The average price of a condo was up slightly by 1% from September and up 14% from October of last year.
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 October, the ratios were 2.3 in the detached home market and 2.0 for the condo market. This means the supply of both detached homes and condos is still very tight but better than it has been for many months.
Detached Home Market Trends
- There was an increase in sales volume (higher demand).
- The number of listings on the market increased in October (increased supply).
- Well-priced homes in popular neighbourhoods are selling, some with multiple offers over the asking price. Pricing your home correctly is critical in this market. Over-priced homes are simply sitting on the market.
- Home price trends are really neighbourhood-specific with prices in some neighbourhoods increasing faster than in others. For example, home prices in Mimico and New Toronto are down, while in communities like The Queensway and Sunnylea, they are up.
Condo Market Trends
- The volume of condos sold was up in October (higher demand).
- Prices continue to increase in this hot market.
- 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
October 2017 – October 2018
Etobicoke Sales Volume of Homes and Condos Sold
October 2017 – October 2018
Detached Home Neighbourhood Average Prices October 2018
Condo Neighbourhood Average Prices October 2018
Our Tips for Buying and Selling This Fall
So what does this all 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. With prices rebounding from their all-time low’s, more sellers bit the bullet and put their home up for sale. The inventory of properties has increased so there’s a bit more competition if you’re selling. However, inventory continues to be relatively low. If you’re thinking of selling, it’s still a good time to list and get it SOLD before the holidays.
You need to price your home right for the current market. There are buyers out there ready to purchase, but they don’t want to buy an overpriced home. 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 a few months ago. 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 still low. Many offers are now coming in with conditions. It’s advisable to work with an experienced agent who knows what conditions are problematic and which ones are fine.
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 the sale 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 conditional offers 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!
Looking for more info?
Get in touch and find out how we can help.
COMMENTS