On the face of it, the numbers look bad… a massive 14.3% drop in the average sale price from one year ago, a 40% drop in sales from last March and a 147% increase in active listings.
The problem is that these stats are ONLY a comparison to 2017’s market which was, for the first five months, an ‘outlier’ year. We are still doing very well if you compare us to years prior to 12 months ago.
There is no question that some geographic and demographic Toronto markets are taking a hit.
While the change in market conditions certainly played a role, the dip in the average selling price was also compositional in nature.
Detached home sales, which generally represent the highest priced homes in most neighbourhoods, declined much more than other home types. In addition, the share of high-end detached homes selling for over $2 million in March 2018 was half of what was reported in March 2017, further impacting the overall GTA average selling price. I’ve done an analysis of this specifically in this month’s Market Report.
Some of the GTA neighbourhoods surrounding Toronto have seen their sales numbers and average sales prices drop significantly.
However, for the most part, houses and condominiums in Toronto’s central core have not taken a hit at all and sales are brisk. The downtown condo market saw 11.6% average sale price increases west of Yonge and 14% east of Yonge.
Would you like to check on how much your Toronto condo or house might be worth in today’s market?
Watch the video or read the March 2018
Market Report Analysis and please keep us in mind when any of your friends are talking about buying or selling real estate in Toronto.
Don’t Panic As The Average Sale Price Shows A 14.3% Drop [VIDEO]
Sales were down 40% for March compared to last year with 7,228 houses and condominiums changing hands in all the districts. This was the lowest number of sales for the month since March 2009.
Condo townhouse and high-rise suites took a highest-ever for March 37.2% share of the market with 2,686 units being sold.
The March average sale price for all GTA homes came in at $784,558– this was a big 14.3% decline from one year ago. Considering that March 2017 was an over-the-top crazy market, if instead you compare 2018 with 2016 (with an average of $688,011), this year was still up 14% 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 March compared to historical numbers was up 4.4% but increased by a big 103% 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 March that ratio finished at 45.3% compared to an insane 152% last year. The GTA is now into a moderate 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 20 days, 5 days faster than February.
Watch the video to get the complete March 2018 Market Report details.
If you'd prefer to read the full market report details, click here.
Well Maintained And Cared For 2 Storey Semi-Detached House
This lovely home, steps from the lively Danforth stretch, has a recently renovated kitchen, upstairs bathroom, and master bedroom, recently painted interior walls and exterior brick. 3 bedrooms & 2 bathrooms with high-ceilings and large windows let in ample natural light.
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