Below Average New Listings For February 2018
Greater Toronto Realtors reported 5,175 residential sales through the Toronto MLS system in February 2018. The number of transactions in February represented a 34.9% decline compared to the record 7,955 transactions reported in February 2017.
For the region as a whole detached homes in the GTA experienced the largest sales decline at 41.2%.
The number of new listings reported in February 2018 was up by 7.3% compared to February 2017. However, the level of new listings remained below the average for the month of February for the previous 10 years. The number of active listings reported in February 2018 was up by 147.4% compared to February 2017.
“When TREB released its outlook for 2018, the forecast anticipated a slow start to the year compared to the historically high sales count reported in the winter and early spring of 2017. Prospective home buyers are still coming to terms with the psychological impact of the Fair Housing plan, and some have also had to reevaluate their plans due to the new OFSI-mandated mortgage stress test guidelines and generally higher borrowing costs,” said Mr. Syrianos, TREB’s President.
The average price in February was down by 12.4% from the same time last year to $767,818 due in large part to a smaller share of detached home sales versus last year. Condo apartments in the GTA led the way in terms of an average price increase at 10.1% compared to the same time last year. In the City of Toronto the average price was up for all home types except for detached homes and semi-detached homes.
Putting aside the price spike reported in the first quarter of 2017, it is important to note that February’s average price remained 12% higher than the average reported for February 2016 which represents an annualized increase well above the rate of inflation for the past two years.
“As we move further into the spring and summer months, growth in sales and selling prices is expected to pick up relative to last year. Expect stronger price growth to continue in the comparatively more affordable townhouse and condominium apartment segments. This being said, listings supply will likely remain below average in many neighbourhoods in the GTA, which, over the long-term, could further hamper affordability,” said Jason Mercer, TREB’s Director of Market Analysis.
Sales of Toronto (416 area code) condominium apartments decreased by 29.9% in February 2018. The average selling price of a Toronto condo increased by 10.7% in February 2018 from the same time last year to $570,275.
Condominium apartments accounted for 31.5% of total GTA sales in December while detached homes accounted for 41.9% of the total sales.
Other notable statistics include the average days on the market for February at 25 days, up from 13 days a year earlier. The sales-to-listings ratio for February 2018 was 38.8% which is still 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.