Sales were down 22.5% for December compared to last year with 3,781 houses and condominiums changing hands in all the districts. This was the lowest number of sales for the month since 2012.
Condo townhouse and high-rise suites took a significant 39.4% share of the market with 1,489 units being sold.
The December average sale price for all GTA homes came in at $750,180 – this was a very modest 2.1% increase from one year ago. This was just fractionally above the average two years ago in December.
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 December compared to historical numbers and compared to last year at this time were both down almost 12%.
This is actually a good sign since we’re not being overwhelmed with high inventory levels and probably keeping us from seeing a slump in prices in some GTA locations.
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 December, that ratio finished at 33.1% - 4 percent below last year – and just slightly above the low point that we hit in September. The GTA overall is barely into seller market territory so sellers may need to adjust their pricing expectations if they want to make a move.
The days-on-market average for GTA / Toronto homes was 31 days, 4 days slower than in November.
Here’s a snapshot summary of the significant real estate milestones for Toronto in December and Year-End 2018… it looks like fewer people want to sell and there are fewer buyers in many of the outlying districts.
- Lowest number of December sales since 2012 (6,251)
- The ratio of sales-to-listings was lower at 33.1% in December – This is just barely into seller market territory
- The average sale price came in at $750,180– which was up just 2.1% compared to December 2017 – Those mortgage ‘stress-test’ financing rules from this past January have seriously affected our market
- Note that this overall market average was just 2.7% higher than 2 years ago in December 2016
- Overall sales in the month were down 22.5% from one year ago
- The GTA real estate market overall averaged the days-on-market at 31 – the slowest it’s been for the month since 2014
- Detached home sales in December 2018 with a purchase price over $2,000,000 (66) were down 38% from last year (106)
- Affordability considerations are now shifting the market more to a condominium lifestyle – CONDO sales took a 39.4% share of the total market
- Downtown condo active listing numbers were lower in C01 by 22% and up in C08 by 22% from last year at this time
- December sales were down 22% in C01 and lower by 45% in C08 compared to 2017
- The downtown condo days-on-market average was 20-21 days – significantly faster than the overall market
- The ratio of sales-to-listings for condos downtown were higher in C01 (69%) than in C08 (49.3%) for the first time this year due to the increased listing inventory in C08 but still much higher than in the overall market.
- The average sale price for downtown condominium suites is up by roughly $70,000 from December 2017
- Building on this higher demand due to better affordability, condo appreciation in the two main downtown markets averaged 11-12% 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
Watch the video to get the complete December and year-end 2018 Market Report details.
Here's the complete text version of the December and year-end 2018 Toronto Real Estate Market Report to read.
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