Let's catch up on the monthly data:
Over the last 5 years, the average number of condos on the market for sale in March has been 633. This past March, we had 566 available. The condo inventory has drastically reduced and remains slightly low.
Over the last 5 years, the average number of condos on the market that sold in March has been 443. This past March, we had 704 sales. Demand increased even more and is far above typical.
The supply vs demand chart rose significantly as we saw both the inventory decrease and sales increase. The Buyer's came back with a vengeance!
The March median price of a downtown condo was up from $665,000 to $699,950.
In March, the average price of a detached home was up from $1,684m to $1,750m. Since January 2017, home prices are up 31.0% while condos are up 52.0%.
More confident first time buyers and dwindling condo inventory has increased sales and causes prices to rebound. On the ground, bidding wars are common and many properties are holding back offers for bidding wars. We feel sympathetic towards buyers right now, it’s a tough market for them. In hindsight, the fall market was the prime opportunity to buy. With low interest rates over the last 20 years of real real estate, dips in prices are typically short lived. The buyers that hesitated and missed the fall market are paying higher prices today. Buyers are having to write unconditional offers and pay significantly over the asking price in many cases. Some Buyers have no choice but to rent, commute longer distances or even consider leaving the GTA.
We can see the blind bidding offer process become more transparent to help cool the rapid price gains. Many bankers are speaking out against this common practice. Perhaps a more fair bidding process might be a transparent, open bidding process such as used in Australia.
We'd be happy to discuss your own situation in plans in more detail, just reach out to us.
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