The 2014 real estate market has come to an end, with a total of 92,867 residential resale properties sold – making it the 2nd best year recorded. The December market closed with an increase of 9.6% from last year with 4,448 sales. The demand was strong; however inventory was insufficient to satisfy buyers. This trend spoke volumes in the 416 semi-detached market, as the average semi-detached price dropped 4.4% due to there being no semi-detached properties on the market available to buy. However, this inventory-demand balance reflect the average sale price for the GTA increasing 7% to $556,602.
We look back at the last decade where the average home price in 2004 was only $315,231, to purchase the exact home now in 2014, it would go for $566,726. The influx in price has been compromised with the retreat of interest rates. Back in 2004, a 5 year rate was locked in at 4.25%. Since 2012 the downward trend and stability of rates have gone down to below 3%. These trends illustrate how important low interest rates have been to our markets.
High end property sales were robust in December, seeing an increase of 54% of sale prices over $1,000,000. Toronto’s central districts remained strong housing the most expensive properties; with average sale prices for detach homes at $1,558,134 and semi-detached homes at $800,968.
With the big story in 2014 being the condo market, the worry of too many cranes in the sky slowly diminished as condominiums began to represent the largest housing sector by type. Accounting for 30% of all reported sales in GTA and 52% of all sales in Toronto, condos are now a lifestyle.
With the beginning of a New Year and new market we can try to forecast what 2015 may bring us in real estate. We began the year with 10,230 listings – a drop of 10.4% from the beginning of 2014, if we continue at this pace of low inventory the 2015 market may not be able to support this year’s inventory-demand balance.