Prices continue to increase moderately and the average sale price of a home now stands at $388,839, up 3.3% over last year’s $376,236. Despite the fact that there are more properties for sale than last year, the average time it takes for a home to sell is 31 days, a little faster than last year’s 32 days.
The largest segment of the home sales continues to be first time buyers as it has been for the last 20 years with 27.1% of the sales being between $200,000 and $300,000 and 29.3% being between $300,000 and $400,000. We often think of Toronto real estate as being sky high and unaffordable, yet as you can see from the facts, there are a lot of properties that are available in the $200,000 to $300,000 price range in the GTA.
Thirty years ago, the average home in Toronto sold for $67,333, today it is $ 388,839, almost 6 times more. Federal government projections (based on the expected 2% inflation rate) put the price of an average home at $1,141,485 in the year 2036. That may seem crazy to us today, but as the population grows and demand increases, prices will increase as well.
All I can say is, I believe in the long term growth of real estate and am recommending to my clients to buy real estate as a great retirement plan.
Give me a call, let’s talk! After all you have a friend in real estate!
Have a great month.
Your Friend in Real Estate.