Here’s a summary of the significant real estate milestones for Toronto in May 2018 … influenced in a big way due to the new mortgage stress test requirements, the modest increase in mortgage rates and lower sales of higher-priced luxury homes across the GTA.
- Lowest May sales since 2002 (7,834)
- The ratio of sales-to-listings dropped to 37.4% in May – Now in a moderate seller market territory
- The average sale price came in at $805,320– which was a negative 6.6% compared to May 2017 – Remember last year the new Ontario government rules came into effect on April 20th which really influenced the May market last year
- Note that this average was still 8.9% higher than 2 years ago in May 2016
- Overall sales in the month were down 22% from one year ago
- The GTA real estate market overall averaged the days-on-market at 20 – a more normal level for this time of year
- Detached home sales in May 2018 with a purchase price over $2,000,000 were down 51% from last year
- Again, it’s becoming clear that first-time buyer aspirations are now shifting to a condominium lifestyle – CONDO sales took a ‘highest ever’ for May 38.2% of the total market
- Downtown condo active listing numbers were lower in C01 (by 17%) and up in C08 (by 6%) from last year at this time
- The downtown condo days-on-market average was 12-16 days – significantly faster than the overall market
- The ratio of sales-to-listings for condos downtown ranged between 78% in C01 to 71% in C08 indicating an extremely strong seller’s market… double the GTA overall.
- The average sale price for downtown condominium suites is up by roughly $75,000 from May 2017
- Building on this higher demand due to better affordability, condo appreciation in the two main downtown markets averaged 10-13% year-over-year
- Markets in York Region and other 905 neighbourhoods have suffered the most from the market slowdown – York Region is now showing that they’re in ‘buyer market’ territory
- As inventory increases through the spring, buyers should watch for more opportunities to get the condo or house of their dreams.
As always, please contact me if you have any questions. Thank you.