Annual Rate of Sales Decline Slows in May 2018
Greater Toronto Realtors reported 7,834 residential sales through the Toronto MLS system in May 2018. The number of transactions in May represented a 22.2% decline compared to 10,066 transactions reported in May 2017, a record year.
For the region as a whole semi-detached homes in the GTA experienced the largest sales decline at 29.4%.
Supply of homes available for sale continued to be an issue. The number of new listings reported in May 2018 was down by 26.2% compared to May 2017. The number of active listings reported in May 2018 was up by 13.2% compared to May 2017. Recent polling conducted by Ipsos for TREB suggests that listing intentions are down markedly since the fall.
“Home ownership remains a sound long-term investment. Unfortunately, many home buyers are still finding it difficult to find a home that meets their needs. In a recent Canadian Centre for Economic Analysis study undertaken for TREB, it was found that many people are over-housed in Ontario, with over five million extra bedrooms. These people don’t list their homes for sale because they feel there are no alternative housing types for them to move into. Policy makers need to focus more on the “missing middle” – home types that bridge the gap between detached houses and condominium apartments,” said Tom Syrianos, TREB’s President.
The average price in May was down by 6.6% from the same time last year to $805,320. Condo apartments in the GTA led the way in terms of an average price increase at 5.7% compared to the same time last year.
“Market conditions are becoming tighter in the GTA and this will provide support for home prices as we move through the second half of 2018 and into 2019. There are emerging indicators pointing towards increased competition between buyers, which generally leads to stronger price growth. In the City of Toronto, for example, average selling prices were at or above average listing prices for all major home types in May steady population growth,” said Jason Mercer, TREB’s Director of Market Analysis.
Sales of Toronto (416 area code) condominium apartments decreased by 13.8% in May 2018. The average selling price of a Toronto condo (416 area code) increased by 6.5% in May 2018 from the same time last year to $602,804.
Condominium apartments accounted for 30.5% of total GTA sales in May while detached homes accounted for 42.7% of the total sales.
Other notable statistics include the average days on the market for May at 20 days, up from 11 days a year earlier. The sales-to-listings ratio for May 2018 was 37.4% 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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