The Toronto Real Estate Board has released its April numbers revealing a market that is showing signs of normalizing and settling after the craziness of last year’s spring market.
While, the average selling price of a detached home decreased 14.4% year to year, the average price of a detached home remained just above $1 million. Condos outperformed once again jumping 3.2% in average sale price to $559,343. Average sale price was up from March of this year to $804,584. Number of sales has dropped to 7,792 a year-over-year drop of 32.1%. Fewer sales corresponded with the fewer listings on the market. In April, 16,273 listings were put on the market. Compared to last year at the same time, there were 21,571 listings.
Almost all property types saw a month-to month increase in sales in April. Sales for detached houses have increased 6% from March. Average sale price was up 4.7%, with the largest increase of the year! Condos remained the only home type to see both sales and price appreciation on an yearly basis. Condo prices have been increasing steadily as the number of condos available for sale has been down compared to the demand. This has kept the condo market very competitive and has pushed prices higher.
“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,” said TREB president Tim Syrianos.
“Recent polling conducted for TREB by Ipsos tells us that the great majority of buyers are purchasing a home within which to live. This means these buyers are treating homeownership as a long-term investment. A strong and diverse labour market and continued population growth based on immigration should continue to underpin long-term home price appreciation.”
It is key that we look at the latest markets stats with the right perspective, an opinion clearly shared by TREB experts as well. It is also important to note, that April marks the final month when 2018’s stats will be compared with starkly contrasted 2017’s pre-Fair Housing Plan market era. The provincial government measures introduced in April of last year led to an an immediate market cool-down. This is the first spring market since the measures were introduced, so comparing year to year does not actually reveal the full picture. There are a lot dramatic headlines circulating around about the 12.4% year to year decrease in average sale price without a true breakdown of the underlying factors.
As we move into the spring and summer market and with the bad weather behind us, homeowners should expect to see the return of moderate and sustainable prices growth, supported by a strong local economy and ever growing population. A stable market with an increased availability of listings is also good news for buyers, who were losing faith in endless bidding wars. The sales-to-new-listings ratio has increased dramatically in most GTA regions, signalling a true balanced market. Warmer weather and a stabilizing market suggest an optimistic forecast for the next few months and a healthy, sustained pace of price growth in Q2 real estate sales in the GTA.
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