Hover or click over a community to see the local sale prices from April.
TREB PREDICTS PRICE GROWTH AS HOME SALES VOLUME RISES
The effects of our lingering winter coupled with the continued impact of the fair housing plan has Toronto’s April real estate stats looking a little…well, cold. BUT the 2018 outlook is promising as sales volume picks up and Toronto begins to bounce back from 2017’s fair housing changes.
In the headlines this week is the average sale price of $804,584 and the fact that on a year-over-year basis GTA sales were down 32.1% and the average sale price was down 12.4% from Toronto’s peak in 2017.
LOWER HIGH-END HOMES SALES SKEW PRICE AVERAGE
What is of note here is the average sale price was greatly impacted by the decrease in sales volume of high-end homes which dropped from 10% in April 2017 to 5.5% in April 2018. This greatly skews the data around the average sale price.
MONTH-OVER-MONTH SALES SHOW MARKET BOUNCING BACK
Month-over-month statistics however paint a slightly more positive picture. Sale volume was up for almost every housing type in Toronto— moderate price growth for most. This supports TREB’s predictions for the rest of the year. They expect moderate price increases throughout the second half of the year, especially in the condo market. Also mentioned is that we should expect strong price growth in line with a strong local economy and steady population growth. TREB’s president, Tim Syrianos notes, “A strong and diverse labour market and continued population growth based on immigration should continue to underpin long-term home price appreciation.”
RELY ON LOCAL MARKET DATA ONLY
If we take a look at Toronto’s Downtown Core though (C08, C01, E01), or look at the different Toronto municipalities we’ll see an extremely varied picture. We can’t come up with a blanket summary that makes sense for all of these markets combined. Take a look at your local municipality on the map above or the chart below to find out what really happened in your market.
This chart clearly shows how the stats are all over the place downtown, which is why paying close attention to your neighbourhood stats and specific unit type is so important.
LONG-TERM INVESTORS CAN EXPECT STEADY PRICE GROWTH
Also worth remembering though, is the main point we make month and month again, home ownership is typically a long-term investment as long as you’re purchasing a home within which to live. So, as long as you didn’t purchase last year with the intention of flipping this year, you’ll be just fine! You can expect to benefit from Toronto’s gradual price growth in the later half of this year.
Worth checking out is last month’s post in which we break down the numbers on all the local municipalities to show that all housing prices for almost all areas of Toronto are up above the 10% historical price growth average.