WHAT IS HAPPENING WITH THE REAL ESTATE MARKET?
The Toronto Real Estate Board (TREB) has released the housing figures for March, and with 7,187 sales reported across the region, volume was unchanged from the same time last year. The average sales price of all transactions rose to $788,335, representing a year-over-year gain of 0.5%. The average days on market for sold properties was 21.
While March sales and pricing remained flat, the number of new listings fell 5.1% to 13,996. Active listings were also down 2.5%, leaving the current supply at approximately 2.2 months of inventory. Such low inventory would typically suggest seller’s market conditions, however, the OSFI stress test continues to impact buyers’ ability to qualify for a mortgage, which has largely kept prices and sales volume in check.
As buyers look for more affordable housing options, it’s interesting to note the jump in March’s townhouse sales. Last month, 1,253 townhouses sold in the GTA, representing a 12.1% annual increase. In the 416, where housing is priced at a premium, the increase is even more pronounced, rising 15.2%. We expect to see increasing interest in similar property types until a point where pricing becomes less attractive. At an average price of $741,881, townhomes in the 416 were more than $500,000 less than the average single detached home, and only $140,000 above the average condominium, which went over the $600,000 mark.
While at an average sales price of $603,969, the price of condominium apartments continues to appreciate, sales volume was down notably, as a result. In the 416, the 1,349 condo sales represent a 14.1% drop in sales from last year. As the price gap between condo apartments and high-density low-rise continues to narrow in the 416, expect to see increasing demand for multi-unit low- and mid-rise housing or increased sales activity in the 905.
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