For those waiting for the past two years of listening to this media and waiting for a correction, it’s time to face the reality of higher prices and bite the bullet. Toronto in particular is still facing shortage of good listings as average price has risen 9% from this time last year.
Let’s look at West GTA. Sales are down for January in Mississauga, Brampton, and Oakville reporting 462, 403, and 133 unit sales respectively. These numbers are 10 to 13% lower than Jan 2013, however the monthly inventory is tracking between 2.5 to 3.3 months – same as last year. Average price increased in Mississauga by 8%, Brampton by 3%, and Oakville by 2% compared to average price in January 2013. On the surface it looks very similar to last year’s market. However, there is way more pent up demand now. Last year from 4 Jan 2013 to 20 Jan 2013, temperature ranged between 0 degree to plus 15 degrees C. Given our present Tundra conditions, similar sales numbers as last year is actually indication of a very strong market and real demand.
As winters are getting more normal ( yes, you read that right), the real estate market is also behaving as such. When winters are mild the Spring market starts earlier and skews the numbers. This year we’re operating at 40% below average monthly sales. If you’re in the market to buy or sell, get ready. Loads of action to follow.
If you’re a homeowner and not planning to move you can bask in the warmth of higher equity in your home. If I had a dollar for every shovel of snow – Well, now you do. People are holding off selling and it’s tough getting buyers excited as we’re pounded by this inconvenient truth. There’s hope – Wiarton Willie saw his shadow.
Drive safe. Stay warm.