Spring Trends Indicate Healthy Market.
Headed into the second quarter of 2018, the Toronto Real Estate Board is feeling confident about the health of the market.
Though sales for the month of April were down by 32.1% year-over-year – 7,792 sales were reported through TREB’s MLS system – a recent poll conducted by Ipsos on behalf of TREB reveals that the majority of buyers are purchasing a home to live in. “This means these buyers are treating home ownership as a long-term investment,” says Tim Syrianos, president of the TREB.
The average selling price in April was $804,584, which represents a year-over-over decrease of about 12.4%. The dip can be attributed to both policy changes that have impacted the market, as well as changes in the type of homes being purchased. In April 2017, sales of $2-million-plus detached homes accounted for 10% of all sales; this April, they accounted for 5.5%.
“While average selling prices have not climbed back to last year’s record peak, April’s price level represents a substantial gain over the past decade … A strong and diverse labour market and continued population growth based on immigration should continue to underpin long-term home price appreciation,” Syrianos says.
Once the market moves beyond the volatility caused by policy changes, TREB expects moderate increases to home prices in the second half of the year and a “sustained pace of price growth in line with a strong local economy and steady population growth.”
GTA Condo Market Continues to Remain Strong.
Condo prices continued to hold strong in April, according to the latest market report released by the Toronto Real Estate Board (TREB). Compared with the same time last year, prices increased by 3.2%. In contrast, the price of detached homes dropped by 12.4% year-over-year.
Prices are strong for condo apartments across all GTA markets, not just Toronto. In York Region, the average price in April was $485,243 and in Peel Region, $424,449.
The average Toronto condo price in April was $601,211 – up 3.8% from last year. Condo prices remain the lowest in Dufferin County (which includes Orangeville, where the average April price was $285,000).
As policy changes and high prices for detached homes make it difficult for first-time buyers to enter the market, condominium apartments and townhouses are a much more viable and therefore in-demand option.
Price increases should continue throughout 2018, according to Jason Mercer, TREB’s director of market analysis. Mercer notes that “market conditions should support moderate increases in home prices as we move through the second half of the year, particularly for condominium apartments and higher density low-rise home types.”
Like all other housing types, the number of condo sales in April was down compared to April 2017. A total of 2,218 condo sales were reported through TREB’s MLS system, representing a 26% drop year-over-year. Similarly, detached homes saw a 38.4% drop.