Etobicoke Real Estate Market Update – February 2018

It was another interesting month in the Etobicoke real estate market. During February, more buyers pulled the trigger and bought a home. Sales volume for both detached homes and condos were up over January figures.

The average number days on the market decreased for detached homes and condos. This may have been partially driven by buyers who had been pre-approved for a mortgage under the 2017 rules and wanted to buy before their pre-approval expired.

Prices in the two markets went in different directions. The hot condo market had another month of price increases while home prices in the detached home market decreased slightly in February.

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 between 4-5 is a balanced market. A ratio above 5 is a buyers market. In February, the ratios were 2.1 in the detached home market and 1.7 for the condo market. Both indicate a strong sellers’ market.

Detached Home Market Trends

• In terms of what sold, the volume of homes sold in February was up 35% over January figures (higher demand).
• The number of listings on the market increased slightly in February (increased supply).
• Well-priced homes in popular neighbourhoods are selling with multiple offers over the asking price. A recent three-bedroom bungalow in Norseman Heights received eight offers and sold for 10% over the asking price.
• When it comes to prices, overall, the average price was down slightly in February over January. However, this really is neighbourhood specific.

Condo Market Trends

• The volume of condos sold and the average price were both up in February.
• The ratio of condos for sale versus condos sold is very low, which means there’s more demand than there is supply. This typically means we are in a sellers market and prices will continue to climb. It’s beginning to feel like the market we saw for detached homes in the first quarter of 2017.
• 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.

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

February  2017 – February 2018

Etobicoke Sales Volume of Homes and Condos Sold

February 2017 – February 2018

Detached Home Neighbourhood Average Prices Feb. 2018

Condo Neighbourhood Average Prices Feb. 2018

Our Tips for Buying and Selling This Spring

So what does this 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. The inventory of homes on the market is still low. If you’re thinking of selling, it’s good to list when inventory is low as it means you have less competition. There are buyers out there ready to purchase, but they don’t want to buy an overpriced home. You need to price your home right for the current market. 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?

You’re in luck! You have a property that has appreciated in value more than the one you’re looking to buy. In February, condo prices continued to climb and detached home prices decreased. So overall, you’ll get more bang for your buck than you would have this time last year. It really is an ideal time to make a move. The one potential downside of today’s market is that the inventory of homes for sale in Etobicoke is low. There are still many overpriced homes on the market where sellers are hoping to get the prices of one year ago. It’s advisable to work with an agent who knows the market to avoid overpaying.

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.

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 price if it’s 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 consider offers with these types of condition 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!