The weather has certainly played its part in our slow February real estate market but that’s only part of the story. There’s a combination of the influences from the mortgage approval stress test (lowers buyer’s mortgage approval limit), the high purchase price cost of moving up to a new home and the large transactional cost of making a move with Toronto and Ontario land transfer tax fees. All contribute to a slowing down of our market.
Luckily, what’s saving prices from dropping are those two significant moving costs… sellers are not rushing to sell their homes or investments because of the expense of doing so and listing inventories are remaining stable.
Don’t be mislead by the overall numbers though… the Toronto Real Estate Board’s territory is huge from Oshawa to Oakville and north to Lake Simcoe. The central Toronto house and condo markets remain strong while the outlying neighbourhoods are much slower.
Curious about what your condo or house might be worth in today’s changing market?
For a condo valuation, go to DowntownTorontoCondoValues.com - please be sure to leave me your condo’s monthly maintenance fee. For a specific house valuation, click on DowntownTorontoHouseValues.com.
To keep current on market activity changes and analysis during the month, go to Facebook and ‘Like’ my Toronto Real Estate Analysis page.
Watch the video or read the FEBRUARY 2019 Market Report Analysis and please keep me in mind when any of your friends are talking about buying or selling real estate in Toronto.
February Had The 2nd Lowest Number of Sales Since 2001 [VIDEO]
Sales were down 2.4% for February compared to last year with 5,025 houses and condominiums changing hands in all the districts. This was the lowest number of sales for the month since 2009 and the 2nd lowest since 2001, 18 years ago.
Condo townhouse and high-rise suites took a significant 37.3% share of the market with 1,876 units being sold.
The February average sale price for all GTA homes came in at $780,397– this was a very modest 1.6% increase from one year ago.
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 increased by 3.3% but were flat compared to last year at this time.
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 February, that ratio finished at 37.8% - slightly below last year. 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 25 days, 8 days faster than January.
Watch the video to get the complete February 2019 Market Report details.
If you'd prefer to read the full market report details, click here.
For Those Of You Who Like Trivia...
Now and then we post our latest World’s Most Interesting Postcard in our Team newsletter. You might be amazed at what you’ll learn from these interesting tidbits!!
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