Real estate markets in York Region and the Toronto area finished 2006 with a bang. With December, 2006, home sales up be 4.5% in volume, over Dec. 2005, the year ended only 1.1% behind 2005, with a total of 83,084
homes sold through the Toronto Real Estate Board's MLS®. The Average price, in 2006, across the TREB MLS® was $351,941 up from $335,907 in 2005.
In Richmond Hill and Aurora the volume of sales decreased slightly, with the exception of the N05 district (Richmond Hill North of Gamble Rd including Oak Ridges and several newer developments like Macleod's Landing, Tribute's "Inspiration, Bond Lake, The Humberlands, etc...) which saw an increase of sales volume by 17.6%. The average sale price in N05 increased by 6% to $455,973 and the median home sale price is up 5.3% to $430,500.
The majority of these increases can be attributed to the vast amount of development that has occurred over the last 7 years that have changed the area from farm fields into residential neighbourhoods. In years gone by the number of sales was limited by availability, however in 2006 there were 1,804 homes listed on the TREB MLS® in N05, an increase of 34%. These newer homes are larger and sell for higher prices that what was traditionally found in the Oak Ridges area before. Even since last year there are more new homes being sold by speculators, many of which are asking $600,000 and up.
The value of these homes is substantial and it is attracting the attention of a "higher price range" audience. This has had a dramatic effect on the increase in average home sales prices, causing the average price to increase faster than the actual increase in value for a particular home. This change in the areas buyer and housing demographics could cause issues if the average home owner is lead to believe that their home has increase in value by 6%, and want to "cash in". Home values for individual homes has only risen between 2% to 3% from what I have seen, but brand new homes are getting a premium.
The N05 district also has the lowest home sales to active listings ratio in Richmond Hill at 21.2% which could lead to decreases in price if there is a large enough number of sellers that "have" to sell instead of just "wanting" sell. with 45 homes sold in December 2006 (up from 37 in 2005) if 50 out of the 259 homes that are available (as of 9:29 am Jan 18th 2007) "have" to be sold this month then watch for prices to drop. However, sellers in the area have mostly been "wanting" to sell and have not over committed themselves too heavily.
Looking for
homes for sale in Richmond Hill, Ontario or thinking of selling and want to know your
Richmond Hill, Ontario, Home's Value? I am here to help you achieve your goals of a smooth move into your perfect home. I look forward to working with you soon
Andrew Hodge
