Trish Bongard Godfrey

Downtown vs. GTA

04 January 2013
Trish Bongard Godfrey

Downtown Central vs. the GTA

Happy New Year! According to the Toronto Real Estate Board, housing sales in 2012 in Toronto was a tale of two markets: the market we experienced before the Mortgage Rule Changes, and the one after. The switch happened mid-summer 2012. Have a listen to what the TREB analyst says. Have a look at the sales stats last year, compared to the previous 3 years. Prices are up, the number of sales are down slightly.

According to the media, the sky is falling. Or not. It depends which day they look out the window. However, the fact is that despite the lending rules changes and the recent slowdown, market analysis is more subtle than these reports might suggest. The media often report on things that are not relevant to central Toronto.

An important fact to note about statistics is that the Toronto Real Estate Board reports on a fairly large swath of the GTA and beyond. What sells, sits, or is pulled off the market everywhere from Peel to Peterborough, from Lake Ontario to Lake Simcoe, is all lumped in with these numbers. So sometimes, the numbers just don’t reflect the reality I and my clients are experiencing on the ground in the central core where I generally work.

In the downtown core where I work, the 2012 market set historic price records. Overwhelmingly, houses in the central core sold very close to asking, in a reasonable amount of time. The segments of the market which weakened – or at least took longer and still had more competition – were downtown condos, builders’ tear-down/in-fill, and higher-end multi-million dollar properties. I do not think the sky is falling.