Riverdale Real Estate: Navigating the Shifts in a Unique Micro Market
In this report, we'll be breaking down the February stats sourced from the Toronto Regional Real Estate Board (TRREB). They are specifically for North Riverdale, bound by the Don River to the west, Danforth Avenue to the North, Pape Avenue to the east, and Gerrard Street E to the South.
This February, sales have picked up pace, with 10 transactions, up by 150% from the previous year and previous month.
Alongside this surge in sales, homes are selling faster, with a 29% decrease in the time on the market compared to the previous year.
The average selling price has seen a slight dip year-over-year to $1,671,000, however, this number is the least valuable to us in this context.
In a prime neighbourhood like North Riverdale, where sales are low and homes vary in terms of size, condition, and features, the average price can be misleading.
A few high-end or low-end sales can distort the average, not accurately reflecting the typical market value of most homes in the area.
The other stats—such as an increase in sales volume and a decrease in the time on market—are what we really want to look at here.
A 150% increase in transactions and a 29% decrease in the time on market suggest that there are more buyers in the market and homes are selling quicker.
These are stronger indicators of market health than the average price in a context with such variability and a small sample size.
The sales-to-new-listing ratio is also a key indicator in real estate that helps us understand the balance between supply and demand in a housing market.
February’s ratio in North Riverdale was 250%, but what does that mean?
A ratio above 100% means that more homes were sold than new listings were added to the market in the given period, indicating a seller's market.
This can lead to upward pressure on home prices because there are more buyers in the market than available homes.
The shift in sales strategy is equally telling.
Moving away from the 'buy now' pricing to reintroducing offer dates reflects a strategic pivot in response to changing market dynamics.
Last year's cautious approach in a more uncertain market has given way to a more competitive environment, where 60% of this February's sales involved holding offers, and 40% of those capitalized on pre-emptive offers.
This transition, seemingly overnight, underscores a market with pent-up demand finally starting to release.
Buyers now face a more competitive landscape, requiring them to act swiftly and decisively.
For sellers, while the offer date strategy could maximize sale prices and minimize listing duration, it demands a keen understanding of market timing, balancing the potential for higher returns against the risk of misjudging market readiness.
In North Riverdale, we're examining a segment of the market that operates somewhat autonomously within Toronto's real estate landscape, commonly referred to as a micro market.
And even amidst fluctuating economic conditions, North Riverdale has maintained remarkable stability, cementing its desirability, and making it a smart place to invest or live.
Whether you're buying or selling, staying informed and adaptable will be vital if you’re thinking about making a move in the coming months.
Suzanne Lewis, Sales Representative
416.856.1937
Suzanne@suzannelewis.ca