A LOT has been going on in the market with influences from regulatory changes, the political situation in the U.S., foreign buyers in the market.
But what actually made an impact? Inventory.
We aren’t seen a flood of buyers and investors from the U.S….yet. Regulatory changes impacted certain segments of buyers but not the market in a dramatic way. Based on a study by the Toronto Real Estate Board, they estimate that foreign buyers only account for 4.9% of buyers in our market.
Inventory is what’s having the biggest impact. Active listings year over year in December were down 48.1% and the average days a home took to sell went to 20 days, down 31%. Today an article came out in the Globe and Mail talking about how there’s even a shortage of inventory in the condo market. Sales of condos went up 20.3% Pre-construction units are selling out. Anyone worried about a bunch of new condo developments sitting empty can rest easy.
The numbers and logic suggest that with decreasing affordability in the freehold market, buyers are turning to condos as an alternative. We’re also seeing a greater number of homeowners turning to renovations as an alternative to trading up in the market.
The market in 2017 will remain extremely competitive for buyers. Buyers will need to be as prepared and educated as they can when they get into the market and work with agents who are willing to go above and beyond waiting for properties to hit the market.
(BTW – Did you know…if you’re looking at listings on Realtor.ca you only see listings after they have already been listed for 24-72 hours? In order to receive listings the day they come out, you need get set up on a search. Click here to get new listings in your inbox every morning.)
We’re already feeling the momentum building in our office – we’ve never been busier this early in the year!
Looking forward to an incredible 2017!!
Record Sales in 2016!
TORONTO, ONTARIO, January 5, 2017 – Toronto Real Estate Board President Larry Cerqua announced that 2016 was a second consecutive record year for home sales. Greater Toronto Area REALTORS® reported 113,133 home sales through TREB’s MLS® System – up by 11.8 per cent compared to 2015. The calendar year 2016 result included 5,338 sales in December – an annual increase of 8.6 per cent.
The strongest annual rate of sales growth in 2016 was experienced for condominium apartments followed by detached homes. “A relatively strong regional economy, low unemployment and very low borrowing costs kept the demand for ownership housing strong in the GTA, as the region’s population continued to grow in 2016,” said Mr. Cerqua.
The annual rate of growth for the MLS® Home Price Index (HPI) in the TREB market area accelerated throughout 2016 – from 10.7 per cent in January 2016 to 21 per cent in December 2016. The overall average selling price for calendar year 2016 was $729,922 – up 17.3 per cent compared to 2015. The pace of the annual rate of growth for the average selling price also picked up throughout the year, including a climb of 20 per cent in December.
“Price growth accelerated throughout 2016 as the supply of listings remained very constrained. Active listings at the end of December were at their lowest point in a decade-and-a-half. Total new listings for 2016 were down by almost four per cent. In 2016, we saw policy changes and policy debates pointed at the demand side of the market. If we want to see a sustained moderation in the pace of price growth, what we really need is more policy focus on issues impacting the lack of homes available for sale,” said Jason Mercer, TREB’s Director of Market Analysis.