Uptick in Demand for Ownership Housing

 

 

Greater Toronto Realtors reported 7,374 residential sales through the Toronto MLS system in November 2017. The number of transactions in November represented a 13.3% decline compared to 8,503 transactions reported in November 2016.

For the region as a whole detached homes in the GTA experienced the largest sales decline at 19.1%.

The number of new listings reported in November was up by 37.2% compared to November 2016. The number of active listings reported in November was up by 110.6% compared to November 2016. The supply of listings in November 2016 was very low from a historical perspective.

“We have seen an uptick in demand for ownership housing in the GTA this fall, over and above the regular seasonal trend. Similar to the Greater Vancouver experience, the impact of the Ontario Fair Housing Plan and particularly the foreign buyer tax may be starting to wane. On top of this, it is also possible that the upcoming changes to mortgage lending guidelines, which come into effect in January, have prompted some households to speed up their home buying decision,” said Mr. Syrianos, TREB’s President.

The average price in November was down by 2.0% from the same time last year to $761,757 due in large part to a smaller share of detached home sales versus last year. On a year-to-date basis the average selling price was up by 13.4% compared to the same period last year. Condo apartments in the GTA led the way in terms of an average price increase at 17.7% compared to the same time last year.

 

 

“Changes in market conditions have not been uniform across market segments. In line with insights from consumer polling undertaken by Ipsos in the spring, 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. We will have more insights to share about consumer intentions for 2018 at the end of January when TREB releases its third annual Market Year in Review and Outlook report ,” said Jason Mercer, TREB’s Director of Market Analysis.

Sales of Toronto (416 area code) condominium apartments decreased by 6.1% in November 2017. The average selling price of a Toronto condo increased by 17.7% in November 2017 from the same time last year to $555,396.

Condominium apartments accounted for 30.0% of total GTA sales in November while detached homes accounted for 42.5% of the total sales.

Other notable statistics include the average days on the market for November at 24 days, up from 17 days a year earlier.  The sales-to-listings ratio for November 2017 was 40.5% which is still classified as a seller’s market. A ratio from 24%-28% is considered a balanced market.  

Sellers are looking for market value for their property. I prepare a comparative market analysis (CMA) for all of my Buyer clients prior to submitting an offer to determine the property's market value range 

Real estate is very neighbourhood specific, building specific  and even very street specific in some areas. The numbers as reported above are GTA averages. Results in one neighbourhood , on one street or in one building do not indicate that all other neighbourhoods, streets or buildings are experiencing the same results. We are still seeing multiple offers in some areas for the best homes and condos.

 

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