The Toronto Real Estate Board finished off 2018 with 3,780 sales, a little bit less than the 4,500 we predicted, and that was accompanied by 31.5% fewer new listings than December 2017, a sign that tight market conditions will continue in many neighborhoods.
Sales & Average Price By Major Home Type
The Toronto market remains price segregated, with luxury properties, those over $1,500,000, being the most impacted by the new mortgage and foreign buyer rules the government implemented in 2017. While that segment is very slow, more affordable properties and condominium apartments continue to be a hot commodity and increased in price as per the chart below:
Keep in mind, all of the above statistics are averages, and do not reflect reality, and that’s where the problems occur. For example, if only 1 house sold in a month for $2 million, the average price for that month was $2 million. If another house had sold that month for $500,000 then the average price would have been $1,250,000, not a true representation of what occurred.
The media is really doing a disservice to the public sensationalizing these averages. Areas of the GTA continue to be in high demand with multiple offers and prices continuing to increase. Other areas are slower, with prices dropping.
This is not the time for averages, nor the time to sit on the sidelines. Great opportunities exist in today’s real estate market, depending on the individuals needs! This is an opportunity time to trade up. For example: Condominium apartments have increased in price at a higher rate than townhouses. Now it’s possible to get more space at a smaller price differential than ever before.
Other such opportunities exist. It’s critical to have an experienced, full time professional, like us, on your side, highlighting those opportunities. If you have some questions on the market, or have a friend who does, please give us a call and let us put our experience to work for you.
Have a great January!