Active Listings Increase in May
Greater Toronto Realtors reported 10,196 residential sales through the Toronto MLS system in May 2017. The number of transactions in May represented a 20.3% decline compared to 12,790 transactions reported in May 2016.
For the region as a whole detached homes in the GTA experienced the largest sales decline at 26.3%.
The number of new listings reported in May was up by 48.9% compared to May 2016. The number of active listings reported in May was up by 42.9% compared to the lowest level in 15 years recorded in May 2016, but remained below the average and peak during that period. The number increased considerably for low-rise home types including detached and semi-detached houses and townhouses. Active listings for condominium apartments were down compared to May 2016.
“Home buyers definitely benefited from a better supplied market in May, both in comparison to the same time last year and to the first four months of 2017. However, even with the robust increase in active listings, inventory levels remain low. At the end of May we had less than two months of inventory. This is why we continued to see very strong annual rates of price growth, albeit lower than the peak growth rates earlier this year,” said Larry Cerqua, TREB’s President.
The average price in May was up by 14.9% from the same time last year to $863,910. Condo apartments in the GTA led the way in terms of an average price increase at 28.4% compared to the same time last year.
“The actual or normalized effect of the Ontario Fair Housing plan remains to be seen. In the past, some housing policy changes have initially led to an overreaction on the part of homeowners and buyers, which later balanced out. On the listings front, the increase in active listings suggest that homeowners, after a protracted delay, are starting to react to the strong price growth we’ve experienced over the past year by listing their home for sale to take advantage of these equity gains,” said Jason Mercer, TREB’s Director of Market Analysis.
Sales of Toronto (416 area code) condominium apartments decreased by 4.3% in May 2017. The average selling price of a (416) condo increased by 27.7% in May 2017 from the same time last year to $564,808.
Condominium apartments accounted for 28.0% of total GTA sales in May while detached homes accounted for 46.7% of the total sales.
Other notable statistics include the average days on the market for May at 11 days, down 26.7%. The sales-to-listings ratio for May 2017 was 55.2% which is classified as a 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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