Jan 23 | Posted by Barry

Now that we're officially into the New Year, it's time to take one final look at the fascinating real estate market that was Toronto in 2011. While many major markets in North American continued to stagnate, Toronto's year-over-year results were very optimistic. In fact, the December results capped off the second best year on record under the current Toronto Real Estate Board (TREB) boundaries.

Here are the actual year-over-year numbers. For 2011, the average selling price was $465,412, an increase of 8% compared to the average of $431,276 in 2010. Total sales for 2011 amounted to 89,347 – up 4% in comparison to 2010. Even though both these figures are for GTA as a whole and not just for the York Mills (C12) area, they do boast well for the luxury housing niches in Central Toronto.

According to TREB’s Senior Manager of Market Analysis, tight market conditions and reduced inventory (dipping by 27% under 2010’s stock in the month of May) were key contributors towards keeping prices higher. As well, low borrowing costs helped keep buyers confident in the face of such things as mortgage risk. Looking back at the monthly figures for the York Mills (C12) area, the general idea of these trends holds true. On the whole, I’ve noticed that the region is growing up and becoming more multicultural. More and more of the older bungalows and 70s style houses have been replaced by far larger and more glamorous dwellings, most of which are taken by families who intend to stay in the neighborhood for a long time. It’s a natural maturation process given that the lot sizes in York Mills are unmatched by other nearby districts. If this continues, it means progressively fewer houses coming on the market and steadily increasing house value.

So, will the good times continue for 2012? It’s a tough call, especially given the continued instability of the global economy. Furthermore, many analysts are predicting some sort of correction for the Toronto Condominium Market which has experienced momentous growth over the past decade. Although this is intrinsically linked to the luxury housing market, it’s important to distinguish the primary demographics for both markets. With many of the luxury housing sales already coming from overseas in addition to the already superior investments in home renewal and renovation, I wouldn’t expect any ‘Condominium Blip’ to significantly impact the York Mills region. Have a great New Year everyone!

For reference, here are the featured 2011 articles from each month on select real estate topics.
February – Energy Efficiency
March - Staging
April – Curb Appeal
May – Moving In and Moving Out
June – Home Inspections
July – 10 Tips to Get the Most for Your Home
August – Your Garage
September – Mortgage Brokers
October – Moving Insurance
November – Zoocasa and Zoopraisals
December – Title Insurance