Have we hit ROCK BOTTOM yet? Is this considered a HARD landing? Well, let me share the “CONCRETE” facts with you, and you can “CEMENT” your ideas from there. (One of my coaches told me that metaphors are a powerful way of communicating your message! Let’s see if she’s right!)
*2018 Sales of 77,426 are DOWN by 16% compared to 2017. The last time we saw yearly sales this low was A DECADE AGO. 2008 saw sales of around 74,500. Are we now at Rock bottom?
*New Listings were down by almost 13% for the year. I’ve been ranting about the low supply for months now, so no surprise.
*Average sale prices are DOWN by 4% year over year to $787,300. Rock Bottom? Perhaps, but the upside is if you can find a home to buy, affordability could be considered improved.
*If you were trying to buy a CONDO, however, average sale prices over the full year SOARED by 8%.
*Please note: Total sales in 2018 compared to total sales in 2008 are only 4% higher. BUT, a decade later average sale prices have MORE THAN DOUBLED. Now that is impressive.
As far as the last month of December 2018 is concerned:
*December sales were down by almost 23% compared to December of 2017.
*New Listings PLUMMETED BY A WHOPPING 32%, while Total listings were down by almost 12%.
*Average sale prices in the GTA are down by a mere 2% overall
However, in the City of Toronto? …..Detached home prices SANK by 8%. Semi’s ROSE by 4%; Townhouses SHOT UP by 10% and CONDOS SOARED by 11% even though sales of condos receded heavily by 24%…(SUPPLY is definitely an issue, even in the condo market!)
*Months of inventory in the city are historically LOW…1.9 months of supply at the end of the year, so going into January 2019, we will be “selling from an empty cart”.
*other regions in the GTA like York, particularly in areas like King and Richmond Hill, it is a different story where they have months of inventory of NINE MONTHS & 5 MONTHS, respectively.
Again, are we at ROCK BOTTOM? It depends. If we don’t have a surge of new listings, we will be in supply “hell” and so we may be at Rock Bottom in terms of sales, but demand is still consistently high and therefore prices will continue to rise, as buyers “duke it out” at the offer table.
Bring on 2019 and let’s see if I can help you realize YOUR real estate goals for the New Year. I’m confident I can. “All you have to do is call and I’ll be there”…(Carol King says it all for me 🙂
If you (or someone you know), are looking for a Realtor who cares MORE about focusing on your concerns, goals and the successful purchase or sale of YOUR unique home, than they care about their volume of transactions and awards, please let me know the best way for me to connect. I would love to offer my highly personal service. Contrary to that old expression, not only IS this business, but it IS personal! And, please, I encourage you to ask me any questions you may have about this post. I value your input and appreciate the time you took to read it.