City Of Toronto Real Estate Latest Market Report
On House & Condo Sales February 2018
In the first month of 2018 a recurring theme played out throughout the different segments of the City of Toronto’s residential resale market – less properties sold than last year and sold for higher prices. But now there is also more inventory or properties available to buy.
In comparing January 2018 to January 2017, the average sold price for a City Of Toronto property was up to $766,616, a 5.3% gain from $727,928. However, the number of properties sold declined by 20%. 1904 properties sold in January 2017 as compared to only 1517 that sold in January 2018.
One might assume that rising sold prices and less property sales might be due to a lack of supply or inventory. However this is not the case as active listings are up 55% from this time last year. In January 2017 there were 2230 active properties for sale in the City. This year that number has risen to 3460 properties.
The detached home was the only housing type in the City Of Toronto that saw sold price reductions. The decline was modest at 3.9%. There is no surprise in this decline. Detached properties in early 2017 had become exceedingly expensive. Detached properties continue to be expensive, the average sale price coming in January at $1.284M.
Possible factors for this decline could include the run up of prices in early 2017 for detached houses in the City which was simply unsustainable. Secondly we were greeted with new mortgage stress testing rules in 2018 for conventional mortgages (all sales over $1 million must be conventional – that is the minimum deposit required by buyers is 20% of the purchase price).
Early indications are that the new mortgage stress tests reduce the purchasing power of buyers by about 15%. That means that buyers will either buy lower priced properties or pay less than that they could have before the new stress testing.
Lastly there is an uncertainty in the market place that is resulting in hesitancy. There is a belief that prices may continue to decline, so why buy now.
As the coveted detached house is becoming out of reach for buyers in the City of Toronto, semi-detached housing is still somewhat affordable with an average sold price of $936,623, a 3.8% price increase from last year.
Last year in the City of Toronto there were 102 semi-detached houses for sale, and this year there are 219, an increase of 115%. However even with this increase in active listings, the supply remains insufficient to meet demand. It is for this reason that in Toronto’s popular eastern districts (Riverdale, Leslieville, Beaches) sales continued to take place at more than 105% of asking prices, and on average in only 16 days.
As has been the case for a number of months, condominium apartment sales continue at a blistering pace with sales prices skyrocketing. The average sale price for a condo in the City Of Toronto has jumped from $472,409 to $543,279, a 15% increase.
Prices are even higher in the central districts of the City. Last year the average sale price for a downtown condo was $529,000 and that same condo will now cost $616,322, an increase of almost 17%.
Like other segments of the market, sold prices for condos are up with less units selling than last year even though there are now more units for sale.
1125 condo units sold in January 2017 and this January only 899 units sold. However, the number of active listings is up 19% as 1648 units are currently for sale as compared to only 1387 in January of 2017.
Even luxury property sales over $2 Million have had fewer property sales this year yet sold prices are almost 6% higher than last year.
| Housing Type | January 2018 | January 2017 | Year Over Year Change |
|---|---|---|---|
| Overall Market City Of Toronto | |||
| Average Sold Price | $766,616 | $727,928 | Up 5.31% |
| Number Of Sales | 1517 | 1904 | Down 20% |
| Number Of Active Listings | 3460 | 2230 | Up 55% |
| Detached Houses | |||
| Average Sold Price | $1,283,981 | $1,336,640 | Down 3.94% |
| Number Of Sales | 376 | 466 | Down 19% |
| Number Of Active Listings | 1271 | 543 | Up 134% |
| Semi-detached Housing | |||
| Average Sold Price | $936,623 | $902,688 | Up 3.76% |
| Number Of Sales | 94 | 118 | Down 20% |
| Number Of Active Listings | 219 | 102 | Up 115% |
| Condominium Apartments | |||
| Average Sold Price | $543,279 | $472,409 | Up 15% |
| Number Of Sales | 899 | 1125 | Down 20% |
| Number Of Active Listings | 1648 | 1387 | Up 19% |
| Luxury Properties Over $2 Million | |||
| Average Sold Price | $3,142,302 | $2,968,576 | Up 5.85% |
| Number Of Sales | 64 | 88 | Down 27% |
| Number Of Active Listings | 302 | 111 | Up 172% |
As we move into February the resale landscape remains somewhat illogical. Higher sold prices yet more inventory available to buy suggests that even with more properties coming up for sale than last year it still has not been enough to slow the tide of rising sold prices.
It will continue to remain in this strange state until May, when comparisons on a year over year basis become more balanced. Until then comparisons will be made with the first few months of 2017, the most incredible months in Toronto’s resale market history, and unless the various markets in Toronto’s overall landscape are examined, the variance will appear very negative. It’s that psychology that will be at play for the next few months.
Victoria Boscariol is a real estate agent in Toronto Canada with Chestnut Park Real Estate Limited Brokerage. With over 20 years experience, Victoria has been helping people successfully buy and sell condos and houses in Yorkville and downtown Toronto. As a Certified International Property Specialist (CIPS) she has worked with Buyers from around the world moving to Toronto from China, Russia, Brazil, India, South Africa, United Arab Emirates, Jordan, Cyprus, Italy, Germany, The United Kingdom, Australia and the United States. By building an international marketing strategy for every property she puts up for sale, Victoria’s listings of Toronto homes and luxury condos get global exposure that attract qualified buyers from around the world.
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