Market Watch - 2006 Report and the Year Ahead

2006 at a glance...

In the City of Toronto, 34,404 sales were recorded while the resale market was at its most active, up one percent over 2005. The average price rose five percent from $335,907 to $351,941.

What does this mean for you?

If you're waiting to get into the market until the economy slows down and prices drop then you'll be waiting quite a while, not to mention losing valuable equity and growth in your property value in the meantime.

If you own real estate, congratulations - you are most likely benefiting from the average 5% increase in value in your home.

For years now many people have been saying the market was going to slow down. In general terms, this could be the case. But for a growing city whose real estate is undervalued, values keep increasing.

Here is a snapshot of the average cost of a home in North American cities in 2006:

NOTES: Median sale price for 2,200 sq. ft. residence in low-crime neighbourhood. Specifics: 3+ bedroom, 2½+ bath, attached 2-car garage, 2,200 square foot (190 square metre) residence, on at least a 6,500 square foot (604 square metre) lot.

Montreal $335,200
Calgary $369,300
Toronto $421,500
Atlanta $436,300
Dallas $438,200
Chicago $597,800
Vancouver $609,800
Washington $862,800
Los Angeles $1,187,500
Boston $1,384,100
New York $1,599,300
San Francisco $1,635,200

Source: Economic Research Institute, The Geographic Reference Report 2006

Toronto, compared to other major metropolitan cities and financial centres, is significantly undervalued and affordable. This trend continues if you look at other major cities throughout the world.

Like any economy, there will be valleys and peaks. But historical value increases show that in the long term, it is still better to be in the market than out:

Year - Average Price of Single Family Home

1975 - $57,581
1980 - $75,694
1985 - $109,094
1990 - $255,020
1995 - $203,028
2000 - $243,255
2005 - $335,907
2006 - $351,941

Source: Toronto Real Estate Board MarketWatch - December 2006

What is in store for 2007?

The year ahead should prove to be a busy on if steady activity and value increases of five percent from 2005 to 2006 continue.

TREB president Dorothy Mason states, "This means that prices continue to outpace inflation, making home-ownership a sound investment in today's economy and invariably in the long term."

If you know anyone who is not currently in the market, I hope you'll share this information with them.

Best wishes for a happy and successful 2007!

Don't forget to check out the blog below, "What's Hot and What's Not in Homes for 2007!"



**************************************************************************

Check out the following areas to see average prices from December 2006 in your neighbourhood.

Neighbourhood Watch...

E02 -The Beach
(coxwell, danforth, victoria park)
Detached: $528,590
Semi-detached: $386,950
Condo: $288,313

E03 - Danforth (north)
(DVP, victoria park, danforth)
Detached: $353,769
Semi-Detached: $337,850
Condo: $185,100

E01 - Danforth (south) Riverdale
(DVP, danforth, coxwell)
Days on market: 17
% of list: 101%
Detached: $449,929
Semi-Detached: $348,875
Condo:$656,000

C04 - Bedford West & Lytton Park
(allen, 401, yonge, eglinton)
Detached: $764,022
Semi-Detached: $486,134
Condo: $262,977

C09 - Rosedale (yonge, st.clair, bayview, bloor)
Days on market: 31
% of list: 97%
Detached: $1,788,625
Semi-Detached: n/a
Condo: $578,396

C03 - Forest Hill
(allen, eglinton, yonge, st.clair)
Detached: $715,356
Semi-Detached: $583,750
Condo: $394,614

C12- Lawrence Park/Bedford East
(yonge, 401, leslie, eglinton)
Detached: $1,611,042
Semi-Detached: n/a
Condo: $255,000

Source: Toronto Real Estate Board December 2006 MarketWatch - for the full report, click here.

Market Watch - 2006 Report and the Year Ahead

2006 at a glance...

In the City of Toronto, 34,404 sales were recorded while the resale market was at its most active, up one percent over 2005. The average price rose five percent from $335,907 to $351,941.

What does this mean for you?

If you're waiting to get into the market until the economy slows down and prices drop then you'll be waiting quite a while, not to mention losing valuable equity and growth in your property value in the meantime.

If you own real estate, congratulations - you are most likely benefiting from the average 5% increase in value in your home.

For years now many people have been saying the market was going to slow down. In general terms, this could be the case. But for a growing city whose real estate is undervalued, values keep increasing.

Here is a snapshot of the average cost of a home in North American cities in 2006:

NOTES: Median sale price for 2,200 sq. ft. residence in low-crime neighbourhood. Specifics: 3+ bedroom, 2½+ bath, attached 2-car garage, 2,200 square foot (190 square metre) residence, on at least a 6,500 square foot (604 square metre) lot.

Montreal $335,200
Calgary $369,300
Toronto $421,500
Atlanta $436,300
Dallas $438,200
Chicago $597,800
Vancouver $609,800
Washington $862,800
Los Angeles $1,187,500
Boston $1,384,100
New York $1,599,300
San Francisco $1,635,200

Source: Economic Research Institute, The Geographic Reference Report 2006

Toronto, compared to other major metropolitan cities and financial centres, is significantly undervalued and affordable. This trend continues if you look at other major cities throughout the world.

Like any economy, there will be valleys and peaks. But historical value increases show that in the long term, it is still better to be in the market than out:

Year - Average Price of Single Family Home

1975 - $57,581
1980 - $75,694
1985 - $109,094
1990 - $255,020
1995 - $203,028
2000 - $243,255
2005 - $335,907
2006 - $351,941

Source: Toronto Real Estate Board MarketWatch - December 2006

What is in store for 2007?

The year ahead should prove to be a busy on if steady activity and value increases of five percent from 2005 to 2006 continue.

TREB president Dorothy Mason states, "This means that prices continue to outpace inflation, making home-ownership a sound investment in today's economy and invariably in the long term."

If you know anyone who is not currently in the market, I hope you'll share this information with them.

Best wishes for a happy and successful 2007!

Don't forget to check out the blog below, "What's Hot and What's Not in Homes for 2007!"



**************************************************************************

Check out the following areas to see average prices from December 2006 in your neighbourhood.

Neighbourhood Watch...

E02 -The Beach
(coxwell, danforth, victoria park)
Detached: $528,590
Semi-detached: $386,950
Condo: $288,313

E03 - Danforth (north)
(DVP, victoria park, danforth)
Detached: $353,769
Semi-Detached: $337,850
Condo: $185,100

E01 - Danforth (south) Riverdale
(DVP, danforth, coxwell)
Days on market: 17
% of list: 101%
Detached: $449,929
Semi-Detached: $348,875
Condo:$656,000

C04 - Bedford West & Lytton Park
(allen, 401, yonge, eglinton)
Detached: $764,022
Semi-Detached: $486,134
Condo: $262,977

C09 - Rosedale (yonge, st.clair, bayview, bloor)
Days on market: 31
% of list: 97%
Detached: $1,788,625
Semi-Detached: n/a
Condo: $578,396

C03 - Forest Hill
(allen, eglinton, yonge, st.clair)
Detached: $715,356
Semi-Detached: $583,750
Condo: $394,614

C12- Lawrence Park/Bedford East
(yonge, 401, leslie, eglinton)
Detached: $1,611,042
Semi-Detached: n/a
Condo: $255,000

Source: Toronto Real Estate Board December 2006 MarketWatch - for the full report, click here.

What's Hot, What's Not in Homes for 2007!

Ever wondered what people are looking for in a home when selling your own place? Have you really thought about what you are looking for in your own search?

Here is a summary of what's hot and what's not in homes for 2007.

source: REM Magazine "What's in , what's out with home buyers" January, 2007

WHAT'S HOT

Upscale Garages
From storage systems, heating, and flooring, garages have evolved!

Two Homes Offices
Work, work, work...people are forgetting the commute and saving their marraiges at the same time.

Heated Patios & Walkways
Tired of maintenance and looking to expand their living space al fresco, baby boomers are investing in this feature.

Snoring Rooms
Need we say more? Again, a great way to save your marriage.

Structured Wiring and Wireless
The ultimate goal, no wires...at least we're getting close. From coaxial TV cable to full home networks centres, you'll need an IT guy for the house.

Mixed Finishes
Who says the island has to match the wall cabinets? Designers are playing with textures and tones.

Selling Strategy
Homes that are priced right and good market timing if possible (spring and summer!).

WHAT'S NOT...

Selling Your Home "AS IS"
There is too much competition and too much to lose financially by not making the effort to do even the basic repairs, cleaning and staging.

Small Bedrooms
Developers tried to maximize profits by increasing the room count but if you can't fit a queen size bed in comfortably, it doesn't count anymore.

Hardwood Laminate Floors
No matter how good quality you buy, buyers can spot them a mile away. You may be saving $ when you put them in but you'll lose even more in the value of your home.

Buyer Strategies
Buyers are generally no longer putting in offers over asking price when a home is listed below market value to generate multiple offers.

In Summary...

Your agent should bring in a home staging professional to maximize your home's value and attract buyers for the 2007 market.

A little invested prior to the sale of a properly priced home will result in a quick sale at it's maximum value!!

What's Hot, What's Not in Homes for 2007!

Ever wondered what people are looking for in a home when selling your own place? Have you really thought about what you are looking for in your own search?

Here is a summary of what's hot and what's not in homes for 2007.

source: REM Magazine "What's in , what's out with home buyers" January, 2007

WHAT'S HOT

Upscale Garages
From storage systems, heating, and flooring, garages have evolved!

Two Homes Offices
Work, work, work...people are forgetting the commute and saving their marraiges at the same time.

Heated Patios & Walkways
Tired of maintenance and looking to expand their living space al fresco, baby boomers are investing in this feature.

Snoring Rooms
Need we say more? Again, a great way to save your marriage.

Structured Wiring and Wireless
The ultimate goal, no wires...at least we're getting close. From coaxial TV cable to full home networks centres, you'll need an IT guy for the house.

Mixed Finishes
Who says the island has to match the wall cabinets? Designers are playing with textures and tones.

Selling Strategy
Homes that are priced right and good market timing if possible (spring and summer!).

WHAT'S NOT...

Selling Your Home "AS IS"
There is too much competition and too much to lose financially by not making the effort to do even the basic repairs, cleaning and staging.

Small Bedrooms
Developers tried to maximize profits by increasing the room count but if you can't fit a queen size bed in comfortably, it doesn't count anymore.

Hardwood Laminate Floors
No matter how good quality you buy, buyers can spot them a mile away. You may be saving $ when you put them in but you'll lose even more in the value of your home.

Buyer Strategies
Buyers are generally no longer putting in offers over asking price when a home is listed below market value to generate multiple offers.

In Summary...

Your agent should bring in a home staging professional to maximize your home's value and attract buyers for the 2007 market.

A little invested prior to the sale of a properly priced home will result in a quick sale at it's maximum value!!