Sales Up and Listings Down In February
Greater Toronto Realtors reported 8,014 residential sales through the Toronto MLS system in February 2017. The number of transactions in February represented a 5.7% increase compared 7,583 transactions reported in February 2016.
For the region as a whole, strong annual rates of sales growth were experienced for detached homes, townhomes and condo apartments. The pace of semi-detached sales growth was slower. The year-over-year dip in new listings was likely the issue.
Condo apartments in the GTA had the highest sales increase year-over-year at 15.9%.
The number of new listings reported in February was down 12.5% compared to the same period in 2016. Active listings were 5,400 in February 2017-down 50.5% from February 2016.
“The February statistics tell me that many GTA households continue to view home ownership as a great long-term investment. The high demand for ownership housing we’re seeing is broad-based, with strong sales growth for most low-rise home types and condominium apartments. This makes sense given the results of a recent consumer survey undertaken for TREB by Ipsos, which found an even split between intending first-time buyers and existing homeowners who indicated that they were planning on purchasing a home in 2017,” said Larry Cerqua, TREB’s President.
The average price in February was up by 27.7% from the same time last year to $875,983. Detached homes in the GTA led the way in terms of an average price increase at 32.5% compared to the same time last year.
“The listing supply crunch we are experiencing in the GTA has undoubtedly led to the double-digit home price increases we are now experiencing on a sustained basis, both in the low-rise and high-rise market segments. Until we see a marked increase in the number of homes available for sale, expect very strong annual rates of growth to continue,” said Jason Mercer, TREB’s Director of Market Analysis.
Sales of Toronto (416 area code) condominium apartments increased by 14.0% in February 2017. The average selling price of a Toronto condo increased by 18.2% in February 2017 from the same time last year to $515,424.
Condominium apartments accounted for 29.4% of total GTA sales in February while detached homes accounted for 46.4% of the total sales.
Other notable statistics include the average days on the market for February at 13 days, down 38.1%. The sales-to-listings ratio for February 2017 was 148% 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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