08 Apr Market Update March 2018
**City of Toronto Real Estate Market Update**
In the month of March, we experienced a significant decline (34%) in overall sales activity year over year (YoY) in the city of Toronto. All home types experienced double digit declines in sales volume in the third month of the year. It’s no surprise that sales are off quite significantly, as we are now comparing YoY to the significant highs of the 2017 Toronto real estate market.
Something we haven’t seen in quite some time occurred in the month of March; YoY price declines in the detached, semi-detached and attached row/townhouse home segments (17%, 5% and 8%, respectively). Condos maintained YoY price appreciation, albeit at a slower rate of 7%. However, even with the price declines in houses and moderate price growth in condos, I am still seeing multiple bid situations and often pre-emptive offers on homes located in most of the central, east and west prime Toronto neighbourhoods.
I expect house prices to level off once we get through the spring months. I still believe that condos are in very high demand and prices should continue to increase. Large 2 bedroom suites in desired buildings often generate bidding wars as they are increasingly hard to find.
Let’s tackle the inventory story by looking at new listings and active listings in the month of March. There was a dichotomy in the market where we experienced YoY double digit declines in new listings coming to the market in March’18 vs. March ’17, yet active listings displayed significant double digit increases on a YoY comparison. Two possible reasons to explain the listing inventory buildup in March are: 1. More homes were being sold with conditions. When a home is sold conditionally, the listing maintains its active status until a firm deal is reached. Last March (2017), it was quite rare to sell homes with conditions, therefore, listings went firm quicker. This resulted in listings staying on the market for fewer days. 2. Overall, homes are generally staying on the market a bit longer, even when taking into account a conditional sale as noted in point #1 above.
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 certain Toronto neighbourhoods. I recently represented clients who participated in an offer night for an amazing loft in Leslieville that attracted 5 offers. The great news is my clients locked up a fabulous suite!
If you’re looking to sell and want to know what your home is worth, or you are a buyer looking to find a home in a neighbourhood of interest, just call, text or email me at any time.
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