Will GTA’s Housing Market Be ‘Bearish’ or Balanced?
Some media are calling it a bear market; others say recent statistics point to a market in balance. But for frustrated GTA home buyers, current market conditions may be liberating.
GTA home sales in August 2017 dropped 34.8% year over year to 6,357, according to results released by the Toronto Real Estate Board (TREB). The average price of a home increased by only 3% to $732,292; according to a BNN report, this represents a decline of 20.5% over the peak price reached in April 2017 and satisfies the definition of a negative “bear market.”
Active listings were up by 65% in August 2017, compared to the same period last year, indicating there’s currently choice for potential buyers; however new listings declined by 6.7%, suggesting less choice in the future.
The double-digit decline in sales affected all housing types. Detached home sales in Toronto and the GTA combined fell by 41.6%, while overall sales of condos and townhomes dropped by 28% and 27.5% respectively.
While the average price of a detached home in Toronto ($1,191,052) declined by 1.2% and in the GTA by 0.1% ($906,592), prices for other home types continued to increase. Condo prices increased by 20.9% to $540,169 in 416 and 18.9% in 905 to $416,081.)
TREB believes buyers will “move from the sidelines,” but lack of inventory may limit choice and increase prices. Whether the future market is a bear or balanced may depend on this.
Current Condo Market: Time to List? Time to Buy?
Like all housing types, sales of condos declined in August 2017 over the same period last year, but condo prices are on the rise. It may be time for sellers to list and buyers to take some action.
According to August results, announced recently by the Toronto Real Estate Board (TREB), GTA home sales continue their downward trend, dropping by 34.8% to 6,357 year over year. Prices are moderating; the average home price rose by only 3% to $732,292.
Sales of condominium apartments declined by 24.5% in Toronto (to 1,476) and 36.4% in the GTA (to 520); in comparison, detached home sales in the city dropped by 34.8% to 561 and 43.2% (to 2,017) in the surrounding area. Overall sales of townhomes fell by 27.5% and semi-detached houses by 31.3%.
While active listings grew by 65%, new listings declined by 6.7%. Concerns remain that low inventory levels will reverse the moderating trend in prices.
Condo prices showed the greatest increase of all home types last month. The price of a condo in 416 rose 20.9% to $540,169 and in 905 by 18.9% to $416,081; meanwhile detached home prices in 416 and 905 declined by 1.2% (to $1,191,052) and 0.1% (to $906,592) respectively. The overall price of semi-detached houses rose by 12.1% to $715,167.
Despite their increased prices, condos remain a bargain. Cash-strapped buyers, still reeling at the prices of other home types, should shop here.