Although most of the recent articles in the Globe and Mail and The Star seem somewhat gloomy, market results last January were highly unusual due to the spike in activity for the first few months of last year coupled with low inventory. Sales in January posted by the Toronto Real Estate Board were down 22%, new listings up 17.4 percent, with days on market stretching to a healthy 32 from 19 a year ago. The average price was down 4.1%.
“In analyzing the data compared to 2016, we are seeing more typical results in both the number of new and active listings as well as unit sales and days on market” says Kevin Larose from The Larose Team.
Although down from last year, the average price for January 2018 is still up 16.6 percent over January 2016 which is in line to growth levels over the past 10 years. We have had a cold start to the year here in the GTA - a harsh winter that is keeping many buyers from coming out to see new properties with the exception of condos. The condo market continues to experience a surge of activity as first time buyers jump in to buy. A good sign of things to come.
Treb forecasts the overall sales units for 2018 should end up close to 90,000- just slightly less than the 92,394 recorded in 2017. What will most likely change is the mix of property types as prices continue their upward climb.
For example- in Mississauga, overall unit sales in January were down 24% with the average price down 11%- primarily due to the lack of sales in single family homes. Sales of condos and townhouses are up in units and in average price as first time home buyers step into the market. “We are experiencing more activity in single family homes as we move in to February and new inventory arrives on the market says Kevin. We expect those who get their homes listed now may end up ahead of the surge.” Again, a good sign of things to come.