08 Feb Market Update January 2018
**City of Toronto Real Estate Market Update**
As we entered 2018 and welcomed a new year, a lot of uncertainty was in the air; from changes to the mortgage qualification rules, to imminent interest rate hikes by the Bank of Canada, to questions about how the economy would react to a large percentage hike in the minimum wage rate in Ontario. It is with this in mind, that I report that the Toronto real estate market has fared relatively well when considering all these factors came into play as the clock struck midnight and 2018 began.
In the month of January, we continued to see a decline in overall sales activity year over year (YoY) in Toronto. All home types saw double digit declines in transaction volume in the first month of the year. We also continued to see a buildup of listings across all home types when examined on a YoY basis. However, when analyzing the month over month (MoM) trend of active listings, we are seeing inventory being absorbed and coming off the highs experienced in the September/October 2017 time period, when many homes that didn’t sell during the summer months were relisted for the fall market. The spikes we saw in new listings over the last quarter of 2017 have now levelled off and inventory is beginning to tighten up again.
Should inventory continue to tighten, we will see rising prices once again – just as buyers began to think things were turning in their favour. In January, we experienced a moderate price decline in the detached segment, while displaying a moderate price increase in the semi-detached category. The more drastic price gains were captured in the attached row house and condominium segments of the market (up 30% and 15%, respectively). The sales and price growth in January is likely tied to an influx of first-time buyers entering the market, with some, suddenly qualifying for less loan value on their mortgage, due to the changes to the mortgage qualification rules in Canada as of January 1st 2018.
As a Realtor®️ who is committed to providing exceptional service and valuable insights, I personally attend many open houses with and without my clients. Two reasons for this: 1. to hear my clients feedback when in attendance and 2. to gauge buyer demand and hear what others are saying about the property. I can report that the Toronto Central, East and West markets, are still seeing tremendous turnouts at weekend open houses and offer nights are still attracting multiple bids for the right properties in some neighbourhoods.
If you’re thinking about selling and want to know what your home is worth, or if you are a buyer looking to find a home in a neighbourhood of interest, just call, text or email me – I would be happy to meet at your convenience.
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