More Listings May Signal a Balanced Market to Come
It’s been some time since buyers could celebrate an increase in inventory in the GTA housing market, but, as April’s results indicate, that time may be now.
Results from the Toronto Real Estate Board (TREB) indicate a strong growth in new listings in April – up 33.6% from the same period in 2016, and a big jump from March 2017 listings, which increased by 15.2%. This meant that 21,630 almost exclusively low-rise properties were available to buyers, who suddenly had more options than they had previously.
Year-over-year home sales dropped 3.2% to 11,630 in April, in part because of where Easter holidays fell this year, according to TREB. Sales of all house types were in negative territory with the exception of condo apartments, which showed single digit increases.
Prices continued to rise last month, but not to the same extent as in March 2017. The average selling price in April was $920,791, up 24.5% year-over-year. By comparison, the average price in March 2017 increased by 33.2% to $916,567.
It may be premature to attribute April’s results to provincial government measures announced in the recently tabled budget.
But a cooling of housing markets in the GTA and nearby cities may soon result. And, while TREB expects pent up demand will continue to push up prices into the summer, the increase in April new listings is nevertheless a positive sign: Might a balanced market be in the offing?
Condo Sales Increase as Low-Rise Sales Decline
While sales of all other housing types dropped in April, condo sales increased. According to figures released recently by the Toronto Real Estate Board (TREB), housing sales declined in April over the same period last year, dropping by 3.2% to 11,630.
TREB, which attributed the decline, in part, to fewer sales days resulting from the timing of Easter, noted all low-rise housing types were impacted; for example, sales of detached homes in 416 declined by 8.7% (to 1,268) and in 905, by 4.1% (to 4,447.) By comparison, condo sales rose by 8% in the 416 area to 2,148, and 6.9% to 865 in 905.
The average selling price for all housing types now totals $920,791 – an increase of 24.5% over April 2016. The current price of a detached home in Toronto is $1,578,542 (up 25.2%) and $1,098,827 in the rest of the GTA (up 24.5%); the price of a condo unit in Toronto rose 32.3% to $578,280, and by 31% to $449,792 in 905.
The inventory of condo units remained stable in April; an anomaly in a month that saw a 33.6% increase in new listings of low-rise housing types.
TREB was encouraged by the increase in listings; according to Jason Mercer, TREB’s director of market analysis, if it continues it may lead to “more balanced market conditions.”
With increased listings and recent market-cooling measures by the provincial government, it just may happen.
DO YOU WANT TO RECEIVE CUSTOMIZED PROPERTY LISTINGS BEFORE THEY HIT REALTOR.CA? Click here and go to Register to sign up!
DO YOU WANT TO GET AN INSTANT UPDATE WHEN YOUR NEIGHBOURS ARE SELLING? Click here.