Market Commentary December 2018

Featured Property 5 Hanna Ave, Toronto

The data for November is in, and for the first time in 6 months, sales were down year-over-year. The 6,251 sales reported by TREB represent a 14.7% drop from last year. Meanwhile, the average price rose 3.5% to $788,345, the MLS Home Price Index (HPI) Composite Benchmark was up 2.7%, new listings fell by 26.1%, and active listings were down 9.8%.

How would we describe the market? In a word, balanced. While the reduction in sales might suggest weakened demand, there were many late-season sales in 2017 as buyers rushed to purchase before new lending regulations took effect in January. Rather, November’s sales compared very favourably to 2012, 2013, and 2014; not record setting years, but typical volume for a late season market.

Purchasers continue to show strong demand for low-rise homes. Single detached homes represented 42.6% of total sales, and semi-detached homes represented 9.9%. However, the mix differs greatly as we approach the city centre. In the 416, condominium sales continue to rise, accounting for 53.5% of sales. In Central Toronto, this was even more pronounced, representing 70.7% of all sales!

Within the 416, the average detached home sold for $1,301,382, the average semi sold for $1,060,359, the average townhome sold for $739,837, and the average condo sold for $595,678. In Central Toronto, singles sold for $2,056,344, semis sold for $1,377,550,

towns sold for $1,213,643, and condos sold for $669,932.

With the market adapting to stricter lending rules, housing supply is the big issue. In Toronto, there is less than 2 months of inventory. So, if you’re thinking of buying or selling, speak with a

Harvey Kalles Real Estate agent to ensure you’ve got experience and success on your side!