Inside the Toronto Real Estate Market – Jan 2017 Edition
Sorry to sound like a broken record but once again, inventory in the real estate market is proving to be a challenge! The inventory of active listings in January 2017 is half of what it was in 2016 and new listings are down 17.6%.
How can we break the stalemate of home owners who want to sell but won’t put their home on the market until they’ve bought? Which ironically they can’t because every other home owner is on the same path!
Solution: If anyone thinking of moving put their home on the market did so but with a long close date (such as 6 months vs. the typical 3) that would allow a nice batch of inventory to open up, balance out supply and demand – and hopefully bring some balance back to sale prices. Meanwhile those same home sellers would have a chance at finding a home that works for them.
Challenge: Get every single real estate agent to advise their clients and have everyone move forward…at the same time!
So that might not happen. But if you’re anxious to make a move, the long close date strategy can be a great way to capitalize on the market but not feel the pressure to make a move in the short term.
Let’s hope February shows more movement in the market to create more balance and sanity.
February 3, 2017 — Toronto Real Estate Board President Larry Cerqua announced that Greater Toronto Area REALTORS® reported 5,188 residential transactions through TREB’s MLS® System in January 2017. This result was up by 11.8 per cent compared to 4,640 sales reported in January 2016. Annual rates of sales growth were higher for condominium apartments than for low-rise home types.
January 2017 picked up where 2016 left off: sales were up on a year-over-year basis while the number of new listings was down by double-digit annual rates for most major home types.
“Home ownership continues to be a great investment and remains very important to the majority of GTA households. As we move through 2017, we expect the demand for ownership housing to remain strong, including demand from first-time buyers who, according to a recent Ipsos survey, could account for more than half of transactions this year. However, many of these would-be buyers will have problems finding a home that meets their needs in a market with very little inventory,” said Cerqua.
The MLS® Home Price Index (HPI) Composite Benchmark price was up by 21.8 per cent on a year-over-year basis in January. Similarly, over the same period, the average selling price was up by 22.3 per cent to $770,745, with double-digit gains in the average prices for all major home types.
“The number of active listings on TREB’s MLS® System at the end of January was essentially half of what was reported as available at the same time last year. That statistic, on its own, tells us that there is a serious supply problem in the GTA – a problem that will continue to play itself out in 2017. The result will be very strong price growth for all home types again this year,” said Jason Mercer, TREB’s Director of Market Analysis.