Real Estate Housing Market March Update!
The Toronto Real Estate Board report has stated that only 7,228 homes changed status last month, compared to the 11,954 in the previous year! This follows two consecutive months of decline since the start of 2018. Not to mention, the decline of 17.6% from the 10-year average.
The number of homes listed for sale also tightened to 12.4%, with 14,866 homes placed on the market. However, despite less choice, buyers are enjoying softer home prices which have dropped 14.3% from last years high, to an average of $784,558
BOARD EXPECTS SLOWER ACTIVITY:
Slower sales and price activity was on course in early 2018, thanks to the ongoing adjustments the new real estate and mortgage regulations implemented last April and this past January.
Lower home prices can be laregely attributed to falling detached home values. The luxury market has also declined considerably, with half as many sales for homes in the $2 Million range.
ANY HOPE FOR RECOVERY?
It may be a weaker start to the 2018 market, but shorter-term data indicates that sales and price growth are already heating up, signalling a competitive spring season!
Sales and prices are ramping higher across all home types from February, with the exception of condo townhouses, which saw slight price declines from the previous month.
Detached home sales surged in March, up 31% in the TOTAL TREB area and 39% in the city of Toronto, and relatively flat price growth, at 3 and 0 %, respectively.
Semi-detached homes saw the greatest uptick in demand in the 416, with 55% more changing hands and 6% price growth compared to Febraury, and up 25% in the TREB region, with prices rising 5% !
While sales for condo townhouses remain robust, up 38% in both the TREB and Toronto regions, prices softened slightly. Condos continue to perform steadily, with sales increasing 28% and 27% in TREB and Toronto.
This uptick has returned the City of Toronto to a sellers market, compared to the mostly balanced and buyers conditions found throughout the TREB- tracked markets. This is determined by the regions sales-to-new listings ratio, which indicates how many of the newly-listed homes for sale are being sold. A ratio between 40-60% is considered balanced, while ratios below and above that range indicate buyers and sellers conditions, respectively.