Toronto Real Estate Market Watch 05/19
Flowers are blooming, birds are singing, and the spring market is BOOMING!
There were 9,042 residential transactions in April, contrasting to 7,744 sales during the same time last year…that’s a jump of 16.8%! Meanwhile, selling activity picked up across all property types, with detached sales rising 21.9% – the fastest growth among housing types. In addition, the average selling price across the GTA climbed up to 1.9% year-over-year to $820,148. The hike in prices was driven primarily by higher-density segments, meaning housing categories with more inventory, such as condos and low-rise apartments. The average price of a condo rose 5.1% year-over-year to $588,168.
An 8% increase in new listings, while an improvement over 2018 and the recovering inventory, was still significantly lower than the increase reported in sales, pointing to an ever tightening of market conditions. “The strong year-over-year growth in sales is obviously a good news story and likely represents some catch-up from a slow start to the year. TREB’s sales outlook for 2019 anticipates an increase relative to 2018. It should be noted, however, that growth in new listings is not keeping pace with sales,” reads a statement issued by TREB President Garry Bhaura. “This points to the ongoing housing supply issue in the GTA. In this regard TREB welcomes the provincial government’s Housing Supply Action Plan announced last week to reduce red tape and improve the mix of housing types. TREB provided input on the Plan through submissions and participation on working groups.”
Here at the Richards Group, we keep our ears to the ground about discussions regarding pricing and values – while the media talked about values dropping earlier this year, we are still seeing a stable market with moderate price growth supported ongoing demand. Price growth increased in April relative to the first three months of 2019, with the MLS benchmark rising 3.2%, and average selling prices up 1.9% to $820,148, with a seasonally adjusted 1.1% increase compared to March. There isn’t much tolerance however, for an overpriced home, particularly in the higher-end luxury market. In past years, sellers might get lucky with the frenzy of the market but with greater stabilization, buyers are not feeling as pressured with more inventory to choose from.
In the market under $1.5M, buyers will still be competing, and sellers in in this price range will still be seeing multiple offers. Semi-detached homes continue to accelerate in appreciation as demand is high and we see a migration from condo-dwellers who have enjoyed significant appreciation on their investment.