Total Sales in 2017 down 18%
Greater Toronto Realtors reported 4,930 residential sales through the Toronto MLS system in December 2017. The number of transactions in December represented a 7.1% decline compared to 5,305 transactions reported in December 2016. For the the region as a whole detached homes in the GTA experienced the largest sales decline at 13.6%.
Total sales for 2017 at 92,394 was down 18.3% from the record set in 2016.
Record sales in Q1 were followed by a decline in Q2 and Q3 after the Ontario Fair Housing Plan(FHP) was announced. The pace of sales picked up in Q4, as the impact of the FHP started to wane, and some buyers arguably brought forward their home purchase in response to the new OSFI stress test guidelines effective Jan 1,2018.
The number of new listings reported in December was up by 51.9% compared to December 2016. The number of active listings reported in December was up by 172.4% compared to December 2016.
“Much of the sales volatility in 2017 was brought about by government policy decisions. Research from TREB, the provincial government and Stats Canada showed that foreign home buying was not a major driver of sales in the GTA. However, the Ontario Fair Housing plan, which included a foreign buyer tax, had a marked psychological impact on the marketplace. Looking forward, government policy could continue to influence consumer behavior in 2018, as changes to federal mortgage lending guidelines come into effect,” said Mr. Syrianos, TREB’s President.
The average price in December was down by 0.7% from the same time last year to $735,021 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 14.4% compared to the same time last year.
The average selling price for 2017 as a whole was $822,681- up 12.7% compared to 2016. This annual growth was driven more so by extremely tight market conditions during the first four months of the year. In the latter two-thirds of 2017, fewer sales combined with increased listings resulted in slower price growth.
“It is interesting to note that home price growth in the second half of 2017 differed substantially depending on market segment. The detached market segment- the most expensive on average – experienced the slowest pace of growth as many buyers looked to less expensive options. Conversely, the condominium apartment segment experienced double-digit growth, as condos accounted for a growing share of transactions,” said Jason Mercer, TREB’s Director of Market Analysis.
Sales of Toronto (416 area code) condominium apartments decreased by 8.8% in December 2017. The average selling price of a Toronto condo increased by 14.1% in December 2017 from the same time last year to $532,700.
Condominium apartments accounted for 31.7% of total GTA sales in December while detached homes accounted for 39.3% of the total sales.
Other notable statistics include the average days on the market for December at 27 days, up from 20 days a year earlier. The sales-to-listings ratio for December 2017 was 38.1% 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.
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