THE TORONTO REAL ESTATE BOARD RELEASES MARCH 2018 SALES STATS

TREB MARKET WATCH - MARCH 2018 IMAGE

April 4 2018 — Toronto Real Estate Board President Tim Syrianos announced that Greater Toronto Area REALTORS® reported 7,228 residential transactions through TREB’s MLS® System in March 2018. This result was down by 39.5 per cent compared to a record 11,954 sales reported in March 2017 and down 17.6 per cent relative to average March sales for the previous 10 years.

The number of new listings entered into TREB’s MLS® System totaled 14,866 – a 12.4 per cent decrease compared to March 2017 and a three per cent decrease compared to the average for the previous 10 years.

“TREB stated in its recent Market Outlook report that Q1 sales would be down from the record pace set in Q1 2017,” said Mr. Syrianos. “The effects of the Fair Housing Plan, the new OSFImandated stress test and generally higher borrowing costs have prompted some buyers to put their purchasing decision on hold. Home sales are expected to be up relative to 2017 in the second half of this year.”

The MLS Home Price Index Composite Benchmark was down by 1.5 percent on a year-over-year basis for the TREB market area as a whole. The overall average selling price was down by 14.3 per cent compared to March 2017.

While the change in market conditions certainly played a role, the dip in the average selling price was also compositional in nature. Detached home sales, which generally represent the highest price points in a given area, declined much more than other home types. In addition, the share of high-end detached homes selling for over $2 million in March 2018 was half of what was reported in March 2017, further impacting the average selling price.

“Right now, when we are comparing home prices, we are comparing two starkly different periods of time: last year, when we had less than a month of inventory versus this year with inventory levels ranging between two and three months. It makes sense that we haven’t seen prices climb back to last year’s peak. However, in the second half of the year, expect to see the annual rate of price growth improve compared to Q1, as sales increase relative to the below-average level of listings,” said Jason Mercer, TREB’s Director of Market Analysis.

FOR A FULL COPY OF TREB’s MARCH 2018 MARKET WATCH REPORT, CLICK HERE!

TORONTO’S REAL ESTATE MARKET STILL IN FLUX

THE TORONTO REAL ESTATE BOARD (TREB) RELEASES STATISTICS FOR JANUARY 2018 – 6th FEBRUARY 2018

TREB MARKET WATCH - JANUARY 2018 - Summary Charts

The TORONTO REAL ESTATE BOARD just released their monthly “MARKET WATCH” statistical review for the month of January 2018. In the accompanying press release, TREB President, Tim Syrianos announced that Greater Toronto Area REALTORS® reported 4,019 residential transactions through TREB’s MLS® System in January 2018.

Apparently, this result was down by 22% compared to the all-time record 5,155 sales reported last year (January 2017). Also, to add more fuel to the nay-sayers, the doom & gloom bubble hypers & non-hibernating real estate bears was the additional statistic regarding new listings entered into the system in January. This amounted to 8,585 new listings being added to MLS – a 17.4% increase compared to 7,314 new listings entered in January 2017. 

However, what will quickly be over-looked for the more hypable headlines is the note that followed this last statistic:

“…it is important to note that the level of new listings was the second lowest for the month of January in the past 10 years.”

In addition to these easily sensationalizable statistics, TREB added the following context to their monthly, statistical announcement:

…As we move through the year, expect the pace of home sales to pick up, as the psychological impact of the Fair Housing Plan starts to wane and home buyers find their footing relative to the new OSFI-mandated stress test for mortgage approvals through federally regulated lenders.

And, another stat that will likely be overlooked and under-hyped was TREB’s MLS® Home Price Index Composite Benchmark, which was up by 5.2% year-over-year.  Apparently, this annual rate of growth was driven by Toronto’s vibrant condominium apartment market segment, which has enjoyed unprecedented double-digit annual growth versus the single-family segment – i.e. freehold houses – with prices essentially flat compared to last year. 

In summary, the press release and report go on to state that the overall average selling price was down by 4.1 per cent year-over-year to $736,783.  However, this decline was weighted toward the detached segment of the market which had been stagnating for some time. And, by way of comparison, in the City of Toronto, the average selling price was up for all home types except for detached houses*.

(To view the full TREB JANUARY – 2018 MARKET REPORT click here!