It’s a Buyer’s and a Seller’s Market as Fall Winds Down.
The GTA real estate market is likely somewhat confusing right now – to buyers and sellers alike.
As Jason Mercer, Director of Market Analysis, notes: “Changes in market conditions have not been uniform across market segments … we are still seeing seller’s market conditions for townhouse and condominium apartments in many neighbourhoods versus more balanced market conditions for detached and semi-detached houses.”
According to November 2017 results released by the Toronto Real Estate Board (TREB), year-over-year sales dropped by 13.3% to 7,374.
The decline touched every home type and area – although, as Mercer suggests – some more than others. Overall, detached home sales declined by 19.1% to 3,131 (812 in Toronto; 2,319 in 905), while townhome sales dropped by 9.3% to 1,189 (281 in 416 and 908 in 905).
The average selling price increased to $761,757, down 2.0% over November 2016. A detached home in 416 now averages $1,276,184; in the 905 area, it averages $898,605. The average price of a condo increased by 17.7% to $555,396 in Toronto and by 10.6% to $414,782 in 905.
New listings jumped by 37.2% year over year to 14,349 – unusual for the pre-holiday period. So, what’s ahead? On January 1, 2018, new mortgage stress test rules take effect. So notwithstanding the holidays, buyers who are hoping to avoid the new mortgage rules could well turn this traditionally slow period into a busy time for all.
Condos Show Strength in a Rollercoaster Market.
The demand for condo apartments remains strong, as sales and prices of other housing types decline.
November 2017 results from the Toronto Real Estate Board (TREB) reported a 13.3% year-over-year drop in overall sales to 7,374. Meanwhile, new listings increased to 14,349, up 37.2% over November 2016 figures, and the average selling price totaled $761,757, down by 2.0%.
The condo picture was different. It showed a decline in sales of only 6.1% in the 416 area (to 1,606) and a 12.3% decline in 905 (to 604). This compares to an 18.9% drop in sales of detached homes in the 416 area (to 812) and a 19.2% drop in 905 (to 2,319).
The average price of a detached home in 416 declined by 5.1% to $1,276,184 and in 905 by 6.2% to $898,605, while the average price of a condo unit in Toronto increased 17.7% to $555,396 and in the 905 area by 10.6% to $414,782.
As Jason Mercer, Director of Market Analysis for TREB, notes: “Changes in market conditions have not been uniform across market segments … we are still seeing seller’s market conditions for townhouses and condominium apartments in many neighbourhoods versus more balanced market conditions for detached and semi-detached houses.”
The market has been on a roller coaster ride since the federal and provincial government made changes earlier this year. However, so far, the demand for condos isn’t going anywhere, anytime soon.
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