February 2018 – What the Heck is Happening in the Real Estate Market?
Sitting and Waiting. That’s what I noticed has been happening in the Toronto Real Estate Market so far this year. With so many Government Changes and Rules, Buyers are adjusting to the News and waiting to see what will happen in the Market – Will it go down? Sellers are sitting and also waiting to see if the Market will go up!
The Market the way I see it, is still Stable and Active. Sellers who price their Homes according to the Current Market (and not last year’s prices), are seeing quick Sales for Close List Price. The Luxury Condo Market is seeing Over List Sale Prices. Buyers who are waiting, are also losing out on Properties that come on the Market only to be Sold quickly due to Lack of Inventory.
Bottom Line, if you are Ready to Make a Move, JUST DO IT! Be Educated and Informed of the Current Real Estate Market (which a Great Realtor can do for you), so that you can make a Good Decision and enter the Real Estate Game with Realistic Expectations.
JANUARY 2018 – Average Sale Price of Homes in the City of Toronto:
For more Detailed Information, read Harvey Kalles Monthly
Real Estate Market Commentary for January 2018 below:
It has been a slow start to 2018 as buyers and sellers adjust to new lending guidelines which took effect in the New Year. The 4,019 total sales represent a 22% drop from last January, while the 8,585 new listings were up 17.4% over the same time period. Both represent the ninth lowest total in their category over the past decade.
The average sales price of $736,783 is down 4.1% year-over-year, due in part to a decline in the sales of single-detached homes, -26% year-over-year. Although sales fell for all major housing categories, single detached was the only sector with a lower average sales price in the 416, down 3.9% in Toronto and 9.1% across the GTA year-over-year. The MLS Home Price Index (HPI) Composite Benchmark shows the value of detached homes virtually unchanged from last January (+0.25%). This suggests the drop in the average sales price for detached homes is due to a decline in the total sales of more expensive residences.
Though sales of condominium apartments also fell year-over-year (-22%), the average price of condos was up 14.6% from last January. The HPI for condo apartments was up 20%, suggesting that buyers are purchasing more modestly priced units. It is likely investors are playing some role in the acquisition of smaller condos. At the end of 2017, rental vacancy in the condo market was 0.7%, while inflation for one-bedroom apartments was at 10.9%.
The Toronto Real Estate Board’s forecast for 2018 predicts a slow start for 2018 as the impact of Ontario’s Fair Housing Plan wanes, and the market adjusts to the new OSFI mandated stress tests for mortgage approvals. At their recent Economic Summit, TREB economists pointed to strong fundamentals (high immigration, low unemployment) as drivers of demand, but conceded that affordability would continue to impact many people, particularly the first-time buyer. SOURCED FROM TREB JANUARY 2018 FOR CENTRAL TORONTO. FOR STATISTICAL USE ONLY
Thinking of Making a Move?
Would you like to read Harvey Kalles latest ‘Collection’ Magazine?