January 2018 by the Numbers
The real estate market we experienced during the first 4 months of 2017 was always going to be a tough act to follow. Below is a deeper dive into the difference we're seeing between January 2017 and January 2018.
DETACHED HOME SALES
- Toronto (416) | 2017 = 466 ; 2018 = 377
- Greater Toronto Area (905) | 2017 = 1795 ; 2018 = 1283
- Average Home Prices in Toronto | 2017 = $1,336,640 ; 2018 = $1,283,981
- Toronto (416) | 2017 = 1125 ; 2018 = 899
- Greater Toronto Area (905) | 2017 = 511 ; 2018 = 376
- Average Condominium Prices in Toronto | 2017 = $471,409 ; 2018 = $543,279
Thoughts | Although there has been a softening in the resale housing market year over year; we have seen strong price growth in the condominium market. It appears that the Province's Fair Housing Act has tightened the market in the lower end of the housing market. Prices have increase by over $70,000 year over year due to lower than normal supply.
Toronto Central | In January 2017, Toronto Central saw a total of 963 sales in the one month period. This is compared to 746 in January 2018 - this statistic includes all existing residential transactions. Further look into the numbers show condominium apartment transactions in January 2017 came in at 737; while January 2018 saw a total of 565, Condominium price to sale ratio in Toronto Central has been 99% in 2018; this is down from 101% in 2017. However, it is important to note, although this ratio is down year over year; the average price has increased from $529,802 to $616,322.
Richmond Hill | In Richmond Hill we saw a total of 39 detached homes sold in January 2018 this is down from 101 detached homes sold in January 2017. The average price for a detached home in Richmond Hill went from $1,675,392 to $1,319,797. Detached homes in Richmond Hill are now selling on average 96% of the list price to sale price.
Markham | The detached home market in Markham has also seen downward pressure on pricing which has been trending across this market in York Region. Average prices in January 2017 were $1,521,337 with a total of 103 detached homes changing hands in 2017; January 2018 has seen numbers lag with a total of 63 detached homes sold over the month, with an average sales price of $1,229,595.
The Annex/Yorkville | Interesting movement took place in this market with regards to detached home sales over the last month. In 2018 we've seen a total of 1 detached home sold in Toronto's CO2 real estate district with an average price of $1,533,000. This is down from a total of 9 homes sold in the same period last year with an average house price $1,897,558.
THOUGHTS | Although key market segments are lagging when compared to 2017; it's important to remember that the real estate market of January to April 2017 was an anomaly. Low supply was met with historic demand fueled by record low interest rates and a race to enter the market prior to the announcement of the Fair Housing Act on April 27th 2017. Since the Fair Housing Act was introduced, the market has taken a breath; there have also been subsequent interest rate hikes and the introduction of the mortgage stress tests (Jan 01). The market has reacted surprisingly well, as January 2018 demonstrates the second lowest market inventory in the last 10 years. Although some market segments have seen a modest correction year over year; other segments - specifically the condominium market has continued to see record returns.