More of the Same for the GTA in 2015?

Results for December of 2014 followed the same pattern as every other month last year. From January through November, average prices were 7-9% higher than the corresponding month in 2013, and December was also in line with this trend, coming in at 7% above December 2013. Based on this trend, I predicted last month that December’s average price would be $565,000-$575,000; the actual result was $566,726.

The Toronto market continued to be extremely tight in December. Normally, the inventory of home for sale tends to rise over Christmas & New Years, as buyers take time off for holiday celebration, but this time the inventory remained below 2.5 months, almost unchanged from November and very deep in sellers’ market territory.

Prices_December_2014

Inventory_Dec_2014Despite the low inventory of home for sale, the volume of homes sold in December was 9.6% higher than the previous December; sales over the full year were 6.6% higher than in 2013. Homes are continuing to ‘fly off the shelves’, even during the slowest months of the year, and this portends a strong spring market indeed… and perhaps a very early start as well. January prices are typically only slightly higher than December, but this year they will be more than slightly higher. My call would be for average January prices for the GTA close to $570,000, about 8% higher than last January.