Welcome to our Market Update – a recap of stats for the month of April 2018.
The biggest news from the latest stats is that while the market is still nowhere near where it was this time last year, it’s definitely headed in the right direction. The past four consecutive months have seen average prices going up pretty consistently, from $735K in January to $804K in April – that’s a healthy trajectory.
I’ve mentioned this before, but it’s worth repeating: historically, average home prices in the GTA have gone up 6.57% each year. So if you take away the blip that was early 2017, and compare this year’s number to the same time in 2016, that average rate of appreciation holds – and it shows us we’re getting back to normal.
Overall, signs point to a healthy market. Of course, there are still some questions around government intervention and changing rules, but it looks like a lot of that has already worked itself out. With semis and detached homes, there are some great opportunities for buyers, depending on the neighbourhood.
Generally, the number of active listings is higher than last year, but it’s in line with normal levels. GTA-wide, inventory is sitting on the market for 2.33 months right now, and that’s considered a seller’s market. In the 416, average days on the market is 20 – last year it was 9. However, historically, it has been 25-30 days.
Condos Continue to Steamroll
For condos, average prices are up 3.2% year-over-year, and towns aren’t far behind. The price gap between condos and houses is shrinking fast, which could lead to some interesting shifts – I predict buyers who are looking at condos now will start looking at houses again.
More Pressure on Affordable Homes
Whether it’s condos or detached houses, listings in a certain price range get the most attention. Condos priced from $500-800K and houses in the $800K to $1.3M range are very attractive to buyers. My advice to buyers looking at homes in that range, especially in hot neighbourhoods – be prepared for bidding wars. And be ready to act fast. Get pre-approved now and lock in a rate – RBC and TD just raised their 5-year rates, and other lenders are likely to follow suit.
A Forecast from Urbanation
Our team recently went to a presentation by Shawn Hildebrand, SVP at Urbanation, a company that provides data and analytics about the Toronto real estate market. They predict that the GTA market as a whole will have recovered by mid-2019, which is great for the parts of the 905 that are struggling with high inventory levels.
Advice For Sellers
This time of year, I get a lot of people asking me if it’s a good time to sell. There’s no one answer to that, however – it depends on your location and the type of property you’re looking for. If you’re near a school for example, then a spring/early summer listing is ideal – buyers will want to get their kids settled before the start of the school year. But if your neighbourhood has a ton of homes on the market that aren’t moving, then holding off for a while might be a better bet.
The key message is this – the market has stabilized, despite the year-over-year volatility and scary headlines. If you’re looking to buy or sell, we can definitely help you figure out whether it’s a good time for you.
Do you have questions about the market? Let’s talk!
