For those in the trenches, the 2020 local real estate market has been insane, to put it mildly. Bidding wars on pretty much everything and significant price increases in just a few months. Many have been blaming a lack of available condos for sale with heightened demand by eager first-time buyers and investors.
Let’s take a quick look at the year-over-year sales numbers to see how this year differs from last year.
February 2020 saw 34 sales in Liberty Village. Compare that to 21 total sales we had in February 2019. That’s strange, I thought inventory was way down this year? How about the average sale price? The average sale price in February 2020 was $713,886, that’s a 17.1% increase compared to the average sale price of $609,518 in February 2019! So something is really driving that price up.
Let’s take a deep dive and look at the different size configurations to see what’s actually happening, shall we?
1 studio sold in February with a sale price of $460,000. 2 studios sold in February 2019 with an average sale price of $402,500. Based on the sale of these studios there was a 14% increase in average sale price.
In February 2020, 10 one-bedrooms were sold with an average sale price of $632,302. In February 2019, there were 4 sales with an average sale price was $551,924. That represents an increase of 14.6%.
1 Bed Plus Den
For 1 bed plus dens, there were a total of 10 sales in February 2020 with an average sale price of $718,110. A 15.2% increase compared to February 2019, in which we saw a total of 4 sales with an average sale price of $623,125.
The average sale price in February 2020 for two beds was $871,900 with a total of 9 sales. Compare that to February 2019, when there were 4 sales with an average sale price of $741,000. That’s a 17.7% increase.
Two Beds Plus Den
3 2-bed plus dens were sold with an average sale price of $810,300. In February 2019, there were also 3 sales with an average sale price of $729,333. A total increase of 11.1%.
What’s Happening Right Now
We are getting lots of questions about the (immediate) future of Liberty Village’s real estate market. Agents and buyers know that bidding wars have been rampant and prices have been soaring. Demand has been outpacing the supply which has been leading to upwards pressure on pricing.
Interestingly, the local rental market has seen a real boost in supply. While prices haven’t exactly softened there certainly is more choice for those looking to rent in the area.
I am also getting a lot of questions about how Covid-19 might affect the Liberty Village real estate market. Should you wait to sell? Should you wait to buy? My suggestion would be to proceed with your plans. If you think you are going to get a better deal on a condo next year I would think again. If your plans include selling your current Liberty Village condo then I can say with great certainty that this has been the best time to sell that I have seen….ever. Plus, the Bank of Canada just reduced the bench mark rate to 1.25% so that should make for a very BUSY spring market. See you next month.