Working on the Calculations
Average Prices and Year End Final Prices in the GTA
If you are tracking real estate values, prices, the market and performance you need to know how the numbers are calculated. So, here’s a list of the average sales prices, month by month for the last two years. These are the figures with respect to single family homes in the Greater Toronto Area.
The actual monthly numbers track performance on a monthly basis. It will show ups and downs and naturally it’s more volatile. The actual numbers as presented may indeed be more volatile than the market itself.
Naturally, there is also something of a “mush factor” when the month is short as in February, or perhaps, there are too many weekends. There are other months when the market is traditionally not that busy, so there are fewer transactions. That’s true, but the averages should take that into consideration.
What number are you going to use for the year end number? Clearly, there are two choices, the actual December 31st number, or possibly some sort of a compilation or averaging of all the monthly numbers. If you select the second method, you are much more likely to report a good year.
In 2013, you would show a $2,769 bonus, while in 2014, it would have been $10,124. Going forward, you would always have to track these same numbers.
If you would like to discuss the market, please give me a call.
Brian Madigan LL.B., Broker