Strong Growth in New Listings in April
Greater Toronto Realtors reported 11,630 residential sales through the Toronto MLS system in April 2017. The number of transactions in April represented a 3.2% decline compared to 12,016 transactions reported in April 2016. One issue underlying this decline was the fact that Easter fell in April 2017 versus in March 2016 which resulted in fewer working days this year compared to last and, historically, most sales are entered into TREB’s system on working days.
For the region as a whole, only condo apartments in the GTA experienced sales growth at 7.7%.
The number of new listings reported in April was up 33.6% compared to the same period in 2016. Active listings were 12,926 in April 2017-up 3.0% from April 2016. New listings were up by double-digits for all low-rise home types. New listings for condo apartments were at the same level.
“The fact that we experienced extremely strong growth in new listings in April means that buyers benefited from considerably more choice in the marketplace. It is too early to tell whether the increase in new listings was simply due to households reacting to the strong double-digit price growth reported over the last year or if some of the increase was also a reaction to the Ontario Government’s recently announced fair housing plan ,” said Larry Cerqua, TREB’s President.
The average price in April was up by 24.5% from the same time last year to $920,791. Condo apartments in the GTA led the way in terms of an average price increase at 32.1% compared to the same time last year.
“It was encouraging to see a very strong year-over-year increase in new listings. If new listing growth continues to outpace new sales growth moving forward, we will start to see more balanced market conditions. It will likely take a number of months to unwind the substantial pent-up demand that has built over the past two years. Expect annual rates of price growth to remain well-above the rate of inflation as we move through the spring and summer months ,” said Jason Mercer, TREB’s Director of Market Analysis.
Sales of Toronto (416 area code) condominium apartments increased by 8.0% in April 2017. The average selling price of a Toronto condo increased by 32.3% in April 2017 from the same time last year to $578,280.
Condominium apartments accounted for 25.9% of total GTA sales in April while detached homes accounted for 49.1% of the total sales.
Other notable statistics include the average days on the market for April at 9 days, down 40.0%. The sales-to-listings ratio for April 2017 was 90.0% which is classified as a very big seller’s market. A ratio from 24%-28% is considered a balanced market.
Sellers are looking for market value for their property. I prepare a comparative market analysis (CMA) for all of my Buyer clients prior to submitting an offer to determine the property’s market value range
Real estate is very neighbourhood specific, building specific and even very street specific in some areas. The numbers as reported above are GTA averages. Results in one neighbourhood , on one street or in one building do not indicate that all other neighbourhoods, streets or buildings are experiencing the same results. We are still seeing multiple offers in some areas for the best homes and condos.
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