shutterstock_96477638The Toronto Real Estate Board reported total sales for 2012 were quite strong for the Toronto and GTA, with 85,731 total sales—down from 89,096 in 2011.  The average selling price for 2012 was up by almost seven per cent to $497,298.

I have analyzed the data for a ten-year period for the areas we service.  The highlights are detailed below.

Home Price Index — 10-Year Analysis of Single Family Homes

Area Single Family Home BenchmarkPrice One Year% Change 3-Year% Change 5-Year% Change 10-Year% Change
Aurora $505,700 9.86 30.32 32.12 76.60
E. Gwillimbury $449,400 9.02 24.78 16.12 74.40
Georgina $283,100 1.87 16.68 10.62 58.24
King $658,800 10.45 26.03 42.18 81.97
Markham $603,000 5.12 24.58 39.63 82.04
Newmarket $432,400 2.79 20.34 25.18 60.60
Richmond Hill $664,800 6.47 28.88 32.05 89.39
Vaughan $598,700 3.76 23.41 33.47 80.37
Whitchurch/Stouffville $583,300 7.88 20.30 21.72 82.21
Brock $218,600 -0.43 5.1 6.07 34.38
Uxbridge $378,800 6.44 11.72 8.40 47.68
New Tecumseth $291,300 6.59 9.84 8.43 49.41
Bradford/West Gwillimbury $363,600 8.61 19.72 28.56 72.12

Waterfront Market Activity:

I have been following waterfront sales very closely on Lake Simcoe.

Georgina had a 7 per cent overall increase to the median price of lakefront now priced at $450,000.  Beaverton saw a 12 per cent increase with a median price of $525,000.  The west side of the lake is commanding much higher prices.  There was a 32 per cent increase to the median price of $845,000 in the Barrie/Innisfil area.  The Oro Medonte area’s median price is $588,500.

Community of Sharon:

Sharon saw 46 sales with a median price of $727,500.  This was an overall increase of 28 per cent year-over-year.  Thirty per cent of the total sales were within a price range of $600,000 to $800,000 and 10 per cent of total sales were within a range of $800,000 to $900,000.

Farm Sales:

I also examined the price of farmland in three key areas we serve.  Prices detailed below are based on sales of properties more than 25 acres in size.

Whitchurch/Stouffville had 12 sales with a median price of $1,120,000.  Non-commercial acreage is selling in the $20,000 to $25,000 range.

Brock, which includes Beaverton, Sunderland and Cannington areas saw a 16 per cent increase in sales activity with 29 farms selling in 2012.  Farm acreage is selling in the $5,500 to $6,800 per acre range depending on the quality of the soil and other considerations such as tile drainage.

Uxbridge had a 33 per cent increase in sales with 24 properties selling at a median price of $693,500.  There was a 14 per cent decrease in the median price in 2012.

Real Estate Market Versus Stock & Bond Market:

According to Jason Heath, Certified Financial Planner of Objective Financial Partners Inc., “the past decade has been a tough one for investors in traditional asset classes like stocks and bonds. Annualized total returns (including dividends and interest) for the Toronto Stock Exchange (TSX), Standard & Poor’s 500 (S&P 500) and DEX Universe Bond Index (DEX) have been as follows:

TSX S&P 500* DEX
1 year 7% 16% 4%
3 years 5% 9% 7%
5 years 1% 1% 6%
10 years 9% 2% 6%

* Converted to Canadian dollars.

Most investors have seen their returns one to three per cent lower than the above figures due to investment fees such as mutual fund management expense ratios (MERs).”

I still maintain that real estate is your best investment over the long-term.  It stands the test of time and has great tax advantages that your accountant can discuss with you.

If you are interested in obtaining a copy of our detailed 2012 Real Estate Market Report please call me at 289-338-0767 or email me at Roxanne@ChestnutPark.com and I will send you a copy.

 

Real estate market statistics obtained from The Toronto Real Estate Board and The Barrie Real Estate Board.