January 2019. Wow! Angry skies, howling winds, sheets of snow and sleet, oh and what’s happening to the housing market? Is there a “bad weather” alert for that too? Actually, it all depends on your perspective.
Many “futurists” were anticipating double digit declines in the market; however, what we actually got were mild increases in sales, in prices and especially in NEW LISTINGS…UP by almost 11% compared to January 2018.
Here are the quick facts for the GTA:
*Sales up by .6%
*Sale prices up by almost 2% to $748.3K
*total inventory up by .6%…so those new listings I boasted about…went quickly!
* average days on market 33…one day longer than last year at this time.
In the city:
*Detached home sales and prices were down by a whopping 9%
*Semis sales dove by 3% while average prices went up by 6%
*Condo sales sank by 6% but prices soared by 9% to $678K !! and that is supposed to be the most “affordable” category of housing in the city.
*Average months of inventory in the city is below 2 months…1.9 and so we know supply continues to be a problem in the marketplace.
While the bulk of the market seems to be stable and sound in its numbers, given the supply and demand ratios, the luxury market is experiencing a slightly different result. It appears that homes that are listed at or above $3ML are experiencing an “adjustment” both in sales to list ratios and in their days on market. The consensus is that this has to do with the reduced flow of foreign money into the market…to some degree because of the foreign buyers’ tax, but more because it is harder to get money out of mainland China.
Business in the East End of the city is frantic. They have clearly not heard of any obstacles in the market and properties are selling at warp speed and at sonic boom prices!! The fact that the average sale price in the eastern districts is half ($916,588) that of the central districts ($1,938,617) is no doubt responsible for this divergence.
Although it is a little early in the year to be forecasting for 2019, January’s results – sales volumes, price increases and increases in supply – all point to a healthy 2019. Last year’s annual average sale price was $787,000. By year-end 2019 Toronto and area’s average sale price should be approximately $800,000. From a long-term sustainability prospect we should be thrilled with this number.
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.