By Michael McCann
Why is Birchcliff/Cliffside bucking the GTA and national real estate trend of dipping sales?
It’s a valid question, one which I think we all would like answered.
Believe me I will get to it, but first things first — our May housing market numbers:
Birchcliff/Cliffside
- May 2012 there were 28 homes sold while in May of this year 46 homes changed hands – Increase of 65%
- May 2012 the average sold price was $569,860 while in May 2013 the average sold price came in at $554,766 – Decrease of 3%
- May 2012 it took an average of 22 days for a home to sell and this May we split that time in half to 11 days
Birchcliff – Cliffside Home Sales in May 2013 – 46 homes sold
Source: Toronto Real Estate Board. Excludes commercial properties, condos and vacant land.
I am sure you are looking at the decrease of 3% in the average sold price, but this minor drop is easily explained in the data.
It’s primarily due to the large number of bungalows sold in May this year – 20 of the 46 properties were bungalows which represents 44% of homes sold.
In May 2012 fewer bungalows were sold – 7 of 28 properties which represents 25% of sold units.
We all know that a bungalow will certainly sell for a lower price and with almost half of May sold properties being bungalows you can see that would impact monthly average sold prices.
Toronto Real Estate Board
- 10,544 sales in May 2012 with May 2013 showing 10,182 sales – Down 3.4%
- $514,567 average selling price April 2012 with April 2013 coming in at $542,174 – Up 5.4%
Why is local real estate hot?
So back to my original question. Why is the Birchcliff/Cliffside housing market so hot? Walking through our neighbourhood you can’t help but notice that our community is changing. You see it with more young families moving in and the boom in house construction. These two forces are the key drivers in increasing the value and demand in our neighbourhood.
Let me take a crack at the shift in our demographics first. First let me make one thing clear. We are no longer the poor neighbours east of the Beaches! Savvy buyers are looking to get the most house for their money and Birchcliff certainly provides a great affordable neighbourhood. I have talked with folks during open houses coming from Leaside, Pickering, the Beaches and Liberty Village who have targeted our community as the place they desire to call home. What we have is a vibrant, functioning neighbourhood and as the word gets out it is becoming a sought after commodity.
Renovations and new construction
The second point – I would challenge anyone to walk down any street in Birchcliff and not find new construction or large renovation project. The basic fact is builders only build where there is money to be made. A couple of months ago I commented in Birch Cliff News on the large percentage of detached home in the neighbourhood, which is what’s bringing in the new construction.
It is gratifying to hear that many of my neighbours find my insight informative. If you have any questions or want a specific topic addressed feel free to comment as I am sure it would be of interest to all.
According to the Toronto Real Estate Board, our local housing market is defined as Birch Cliff/Cliffside and the boundaries can be seen below.
View Birch Cliff / Cliffside in a larger map
Good analysis. No doubt that the jump in bungalow sales is in part due to the fact that they make ideal reno/re-build projects – where an owner can buy at a reasonable price, gut it, re-build it, adding a second story and still have space in the backyard for a family. The deep average lot size in this neighbourhood is something not shared by the homes immediately to the west.
Very good analysis! The builders are hot on this area due to the price, proximity to lake, Toronto Hunt Club, quick access to downtown, quick access to the Beaches. And the revamp that will inevitably take place in the village, once the city is finished with the new water mains and paving. Compared to other north American cities, the proximity to water, and easy access to downtown this area is extremely undervalued. If this was Vancouver, this area would be untouchable for under $1.5 million. And that would be a gut job! Smart money will come here!!
For what you would pay for a semi-detached home west of Victoria Park will get you detached house in Birchcliff. I am seeing a great new construction on a couple of our streets and soon one of them will be the first break $1 million for north of Kingston road.
Hi Michael,
There are a lot of custom designed homes cropping up throughout Birch Cliff and the Beaches – some beautiful and in keeping with the area, such as the pair at the bottom Harding, many not so well. Who are the most common builders in the area for new custom home construction? My research is failing me.