Level of Listings Second Lowest In 10 Years
Greater Toronto Realtors reported 4,019 residential sales through the Toronto MLS system in January 2018. The number of transactions in January represented a 22.0% decline compared to 5,155 transactions reported in January 2017.
For the region as a whole detached homes in the GTA experienced the largest sales decline at 26.0%.
The number of new listings reported in January 2018 was up by 17.4% compared to January 2017. The number of active listings reported in January 2018 was up by 136.3% compared to January 2017. However, it is important to note that the level of new listings was the second lowest for the month of January in the past 10 years.
“TREB released its outlook for 2018 on January 30th. The outlook pointed to a slower start to 2018, especially compared to the record-setting pace experienced a year ago. As we move through the year, expect the pace of home sales to pick up, as the psychological impact of the Fair Housing Plan starts to wane and home buyers find their footing relative to the new OFSI-mandated stress test for mortgage approvals through federally regulated lenders,” said Mr. Syrianos, TREB’s President.
The average price in January was down by 4.1% from the same time last year to $736,783 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 14.6% 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.
“It is not surprising that home prices in some market segments were flat to down in January compared to last year. At this time last year, we were in the midst of a housing price spike driven by exceptionally low inventory in the marketplace. It is likely that market conditions will support a return to positive price growth for many home types in the second half of 2018. The condominium apartment segment will be the driver ofn this price growth,” said Jason Mercer, TREB’s Director of Market Analysis.
Sales of Toronto (416 area code) condominium apartments decreased by 19.8% in January 2018. The average selling price of a Toronto condo increased by 15.1% in January 2018 from the same time last year to $543,279.
Condominium apartments accounted for 31.7% of total GTA sales in December while detached homes accounted for 41.3% of the total sales.
Other notable statistics include the average days on the market for January at 32 days, up from 19 days a year earlier. The sales-to-listings ratio for January 2018 was 33.8% 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.
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