Realosophy released its semi-annual Home Value Survey for the Globe and Mail today and I thought this would be a good opportunity for me to drill into the sales stats in more detail to help makes sense of what’s been going on in Toronto’s real estate market so far in 2014.
Surge in High End Home Sales
We saw some steep appreciations in average sale prices in many of the neighbourhoods in our Home Value Survey and when we drilled down to understand what was driving this appreciation we found a significant increase in luxury home sales.
The number of homes selling for over $2M increased by 38% so far this year (Jan-Aug) compared to the same period last year. When we look at all homes selling for over $1M, we saw a 40% increase in the number of sales over last year.
This observation is particularly interesting because home purchases for over $1M do not qualify for CMHC mortgage insurance which means buyers in this price range would need a minimum 20% down payment.
Competitive market for Houses and Condos doing well
When we look at the change in sales (4%) and new listings (-1%) for the first 8 months of 2014 for the GTA as a whole, we don’t see much of a story in the numbers. But looking at sales and listing data by house type gives us a different picture of the market.
During the first 8 months of 2014 4 out of the 5 major house types in Toronto saw a decline in the number of new listings coming on the market. Condo Apartments were the only house type that saw an increase in the number of new listings (4%).
When we look at the change in sales over the same period we see that all 5 house types saw an increase in the number of sales with condo apartments leading all house types with an 8% increase in sales.