What is happening with the real estate market?

During my 36 years experience, I’ve seen several different market cycles. The real estate market in Toronto is cyclical. It goes up. It goes down. And every expert has an opinion on what the market will do next.

Part of our job, as agents, is to interpret the available sales data so we can advise our clients appropriately.

The Most Recent Data

The most recent sales data from the Toronto Real Estate Board (TREB) reports that November 2018 sales were down year over year by 14%. At first glance, this might appear as though the market is “correcting”. If you look further though, the amount of available listings is also down by 10%.

Generally, when you see sales go down, you see active inventory go up.  This has not been the case, and simple economics suggest that with decreasing inventory and stable demand, prices will increase.

Detached houses still lead the way with 44% of the overall sales, but perhaps not surpassingly, given the affordability issue in Toronto, the condominium sector is extremely strong making up approximately 31% of the overall sales.

The average price increase in 2018 was 3.5%. This is a strong increase and should not be compared to the insanity that was evident in previous years where price increases of 15, 19 and 20% were realized. That is not a normal (or healthy) market.

Predictions for 2019

The market during 2018 transitioned, in my opinion, from a super overheated market, back to a normal market and I anticipate more of the same in 2019.

I predict that the spring market of 2019 will continue to be a seller’s market.

For over 30 years, our clients have trusted us to minimize risk, offer unbiased opinions, and ensure their best interests are served. Contact us today to talk about your needs, by emailing us at info@christensengroup.ca or calling us at 416-441-2888 ext. 772.