Sales were down 35% for February compared to last year with 5,175 houses and condominiums changing hands in all the districts. This was the lowest number of sales for the month since February 2009.
Condo townhouse and high-rise suites took a highest-ever for February 38.6% share of the market with 1,995 units being sold.
The February average sale price for all GTA homes came in at $767,818 – this was a 12.4% decline from one year ago. Considering that February 2017 was an over-the-top crazy market, if instead you compare 2018 with 2016 (with an average of $685,738), this year was still up 12% in that 2-year period.
The active listing inventory is one of the strongest indicators of how slow or fast the market has been moving. The inventory average for the month of February compared to historical numbers was up 4.4% but increased by a big 147% from last year at this time.
However, this is occurring selectively with the ‘central core’ Toronto neighbourhoods still doing very well while the outer regions (Peel, York & Durham) may not be seeing the same level of activity.
The sales-to-listings OR percent-chance-of-selling ratio is how we determine what type of market we’re actually in. 24-28% is a neutral market, below 24% is a buyer’s market and above 28% is a seller’s market.
In February that ratio finished at 38.7% compared to an insane 147% last year. The GTA is now into a very ‘lite’ seller market territory so sellers may need to adjust their expectations if they want to make a move.
The days-on-market average for Toronto homes was 25 days, 7 days faster than January.
Here’s a summary of the significant real estate milestones for February 2018… with significant changes due to the new mortgage stress test requirements and perhaps even the modest increase in mortgage rates.
- Lowest February sales since 2009 (5,175)
- The ratio of sales-to-listings moved up to 38.7% in February – Just barely into a ‘lite’ seller market territory
- The average sale price came in at $767,818 – which was a negative 12.4% compared to February 2017 – partially because of more lower priced condo and fewer luxury home sales
- Sales in the month were down 35% from one year ago
- The GTA real estate market overall averaged the days-on-market at 25 – a more normal level for this time of year
- Again, it’s becoming clear that first-time buyer aspirations are now shifting to a condominium lifestyle – CONDO sales took a ‘highest ever for February’ 38.6% of the total market
- Downtown condo listing numbers were up in C01 (26%) and C08 (6.5%) from last year at this time
- The downtown condo days-on-market average was 15-20 days – slightly faster than the overall market
- The ratio of sales-to-listings for condos downtown ranged between 70% in C01 to 69.6% in C08 indicating a very strong seller’s market… well ahead of most of the GTA
- The average sale price for downtown condominium suites is up by roughly $70,000 to $100,000 from February 2017
- Building on this higher demand due to better affordability, condo appreciation in the two main downtown markets averaged 15% year-over-year
- Markets in York Region and other 905 neighbourhoods have suffered the most from the market slowdown – York Region is now showing that they’re in ‘buyer market’ territory
- As inventory increases through the spring, buyers should watch for more opportunities to get the condo or house of their dreams.
Watch the video to get the complete February 2018 Market Report details.
Here's the complete text version of the February 2018 Toronto Real Estate Market Report to read.
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