Don’t Panic As The Average Sale Price Shows A 14.3% Drop

By: Thomas Cook

Don’t Panic As The Average Sale Price Shows A 14.3% Drop

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.

Here’s a summary of the significant real estate milestones for Toronto in March 2018… with significant changes due to the new mortgage stress test requirements, the modest increase in mortgage rates and lower sales of higher priced luxury homes across the GTA.

Watch the video to get the complete March 2018 Market Report details.

Here's the complete text version of the March 2018 Toronto Real Estate Market Report to read.

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