Taking a break from the ROARING Toronto Housing market are we? March 2018 Housing Stats are in and guess what?
Sales are down by a “roaring”40% compared to last year at this time (which was our biggest Sales month in History) sooo….
But here are some other pieces of the puzzle:
*New Listings are down by 12% but total inventory is UP by 10% (Thanks to the Condo market)
*Average days on market are now 20 days as opposed to 10 days last year, but that would also be because so many of the sales generated in March came from the Condo market, and Status conditions take longer to satisfy than the freehold market, where there is no such condition.
*Average Sale prices are DOWN by 14% compared to last years INSANE market prices. But here’s why:
1 Sales of Luxury homes above $2ML are down by 50%
2 There were hardly ANY detached home sales in the mix this month
3 70% of the sales came from Condo land, our least “expensive” products
That said, supply continues to be abysmally low in the 416 areas and the 905 market has more. We continue to have a “Tale of Two Markets” . For example:
416 enjoyed only 706 sales of detached homes at an average sale price of $1.3ML
905 was ROARING with 2,414 sales at an average price of $922K
The luxury market in both area codes (houses in the $2.5ML and Up) continue to linger in some areas as foreign buyers and others, cool their heels in terms of pulling the trigger…These buyers are pondering extra taxes, rising interest rates and stress tests. Oh, and the high net worth buyer is also watching the markets south of the border!
Meanwhile the Condo market is kicking up a storm with absorption outpacing sales and so we will soon have supply issues there. We already do in the city core where sales are down by 32% with average prices rising by 7% compared to L/Y.
Next month and certainly by end May we should start to see a resumption of positive growth as we will not be up against those mammoth numbers from March and April/2017 when the liberal government decided to put in new measures that did everything except fix the SUPPLY PROBLEM….
All that said, sit back and relax, knowing that your biggest asset is still in good financial shape and you will be fairly paid, should you decide to sell, and you will pay a fair market price should you decide to purchase this spring.
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.