Carey and Sharon  Rosenzweig

Carey and Sharon Rosenzweig

Sales Representatives

RE/MAX Realtron Realty Inc., Brokerage*

Mobile:
416-818-2600
Office:
416-222-2600
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2018 Year End Beverley Glen Vaughan Thornhill Real Estate Sales Reports

 

2018 Year End Vaughan Thornhill Real Estate Sales Reports

Including Beverley Glen Whilshire, Brownridge, Uplands, Patterson, Rural Vaughan and other areas of Vaughan
Year end 2018

Year to Date Dec 2016 Dec 2017 Dec 2018 Percentage 2017/16 Percentage 2018/17
Average House Price $943,157 $1,090,550 $976,174  +16% -10% 
Median Home Price $853,000 $970,000 $885,000  +14% -9% 
New listings 7,093 8,297 7966  +17% -4% 
Sales 4,959 3,450 2889  -30% -16% 
Days on Market 16 17 28  +1% +65% 

% of Sales Price
vs. Listing Price

102% 103% 97%  +1% -6% 

 

Happy New Year! It is now the beginning of 2019, a time to reflect on the year that has passed and a time to plan for the New Year.  With respect to real estate and especially real estate in Vaughan and Beverley Glen and Whilshire what does this year have in store for you?  Is this the year that you should buy a new house, upgrade you current home, sell your current home, maybe downsize or perhaps invest in real estate? What does the market look like now and for this year? I will try to answer these questions and more.  

First let’s look at what happened in real estate this year and how the year ended.  We can definitely say this was a year of change resulting from government intervention. The market was historically hot the 1st quarter of 2017 and then the changes. Government implemented 20% down payment. Then Ontario Fair Housing Plan including a foreign buyers tax (a 15% tax on all foreign buyer). This slowed the housing market, not so much the condo market, then the market picked up in December 2017 because of the government threat of the stress test which would come into effect on January the first of 2018 (buyers would need to qualify of 2% higher than existing mortgage rates). The stress test was implemented and these are the results. 

First let’s look at how the year ended.  The Average sale price in Vaughan went down from $1,090,550 from to $976,174 (however, it was still up from the 2016 price of $943,157) and the median price decreased by about $85,000 from $970,000 to $885,000 (and again still up slightly from the 2016 median price of $853,000).  The number of new listing over the year were down from last year's 8,297 to  7,966 but up from 2016's 7,093.  The number of sales were down with 4,959 sales in 2016 and only 3450 sales in 2017 to a 3 year low of 2,889 .  It took 11 days longer on average to sell a house in Vaughan than last year, taking only 17 days in 2017 to sell, 16 days in 2016 and 28 days in 2018.  The houses that sold did so at full price or over asking with an average of 103% and 102% of asking price in 2017 and 2016 but only sold for an average of 97% of asking in 2018. 

What does this mean?  Simply that Vaughan housing market has been depressed from all that the government implemented and it  The average house price is down by about 10%, sales were down by 16%, the sale price to list price ratio was down by 6% and houses took 11 days longer to sell than they did last year. So, what does this mean? Is this a terrible market to invest in real estate? The answer is it all depend. As long as you buy and sell on the same market the prices are not that significant, you may have to sell for a bit less but you will also be buying for less. This could be a great time to upgrade you home to a bigger one because the difference between house prices is smaller. Since the condo market was stronger than the housing market it is also a good time to upgrade from a condo to a house. If you are looking for an investment property it is always good to buy on a downward swing because one never can really time when you are at to bottom of a depressed market until it starts to go back up and at that time you have missed the bottom. We also don't know if the market could go down further, so it could be safer to cash out when you can rather than risking prices falling more. 

Toronto had far more sales than Vaughan (29,863), but the average price a house sold for in Vaughan was over $140,000 more than in Toronto.  Toronto's average house sales price was $835,422 however in this area of Vaughan the average house sold for an incredible $976,174.  In Vaughan 36% of homes listed sold compared to 58% of houses listed in Toronto sold.  Approximately 1 in 3 houses sold in Vaughan and 1 out of 2 houses sold in Toronto. The amount of new listing coming out has decreased, which would usually cause the prices of homes to increase but it did not in Vaughan.  Houses are selling on average in only 28 days and getting 97% of asking price. In Toronto they are selling in 20 days and getting 100% of asking. So the market was definitely slower in Vaughan than it was in Toronto.

There are many predictions about the economy and real estate prices in 2019, as there is every year. The heads in our company are prediction that by 2030 the average house price in the GTA will be over $2,000,000. Predictions can be right or wrong similar to the weather.

Here are a few facts that we see and know:

  • 2017 had high real estate housing sales at approx. 93,000 sales which was just under the numbers in 2015 which went down in history as the most active year according to the Toronto Real estate board (for that time)with 101,299 sales or an increase of 9.2% over sales in 2014(2007 held the past record of most sales at 93,193). 2018 only had just over 77,000 sales down by approximately 17% from 2017 and down 24% from the highest yearly sales.
  • Unemployment is low
  • The economy is strong
  • Emigration continues at record levels
  • The cost of housing is affordable due to interest rates still quite low
  • Rental rates are similar to cost of ownership
  • The boomers' kids have grown up and the kids born from 1977 to 1994 (which number around 9.2 million in Canada in 2011) they are ready to start buying real estate.
  • Real Estate over the long term is a sound investment that continues to increase.
  • Real Estate has been paying a higher return than investing you money in the bank.

These factors we feel could strengthen the real estate market if buyer confidence returns in for 2019. Toronto offers an ideal location close to everything and very central, however, Vaughan offer area's like Whilshire, Westmount, Beverley Glen and Uplands that have larger lots and Patterson offers newer area in Vaughan for when the demand for houses strengthens. The government has tightened some of the mortgage requirements causing prices to cool and the amount of new listing coming out not to sell as quickly resulting in more more choices in available houses and purchaser do not have to feel rushed into a purchase a home or go into bidding wars. It is now a more normal market. The market could increase come the spring, so now is the perfect time to buy, invest or upgrade your present home! Don`t wait!

Now is the ideal time to invest in Vaughan since prices have definitely fallen and there are definitely some bargains to be found.  Starter homes (townhouses, semis, smaller detached and condos) are always in demand for first time buyers which there are a lot of now with interest rates being low and not expected to rise by too much. The return on your money invested in a bank is extremely low, so why not invest in housing.  It is a sound investment!  If you are thinking of upgraded, with interest rates so low, now is the perfect time!   Inventory is up especially in areas of Vaughan, to lots of choices out there. The market has had dips or corrections in the past and has always recovered and continued to increase over time. We work the area and often know of homes coming out for sale before they are listed on the market.

Buyer's market or seller's market, NOW IS THE PERFECT TIME TO BUY OR SELL!!

For help with any of your Real Estate inquires, feel free to call Carey and Sharon Rosenzweig (416)818-2600.

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