For the fourth-consecutive month in a row, home sales in the Greater Toronto Area (GTA) were down double-digits while annual price gains remained moderate – all signs Toronto housing is coming back down to Earth from what was a frenzied seller’s market to a more balanced pro-buyer environment.
The findings are sourced from the Toronto Real Estate Board (TREB), whose most recent Market Watch report indicated the number of properties sold through the Multiple Listings Service in August 2017 dipped 34.8 per cent from the same time last year.
On the pricing front, the average cost of a home (both single-family houses and condos combined) hit $732,292, an all-time high for the month. However, the rate of annual price growth was 3 per cent, a far cry from the unprecedented 33.2 per cent gain seen earlier this year in March.
“The relationship between sales and listings in the marketplace today suggests a balanced market,” said TREB’s Director of Market Analysis, Jason Mercer, in an official statement. “If current conditions are sustained over the coming months, we would expect to see year-over-year price growth normalize slightly above the rate of inflation.”
Toronto Housing Market – August 2017
To find out how home prices fared in your neighbourhood, type out your area and home type in the comments section below and we’ll provide you with the numbers.*
Condominium apartments accounted for the largest price increase in August, up a whopping 21.4 per cent across the GTA, followed by semis and townhomes, which saw 12.1 and 8.9 per cent annual gains respectively.
On the other end of the spectrum, single-family detached property prices remained relatively steady at $968,494, a 0.3 per cent nudge upwards from August 2016.
The marginal price change in the detached property segment can, in many ways, be attributed to the fact the largest dip in detached sales occurred in the York Region, which accounts for a large segment of the GTA’s pricier high-end and luxury property markets. Shifting home buyer preferences is likely a big factor too, as a recent Ipsos survey conducted by TREB in May signaled Torontonians are shifting their eyes toward more affordable options, such as condo apartments and townhomes, and away from more expensive alternatives, namely detached houses.
Perhaps the one hint that supply may soon begin to tighten is the notable dip in new listings. Compared to the glut of new listings seen over the summer, the number of new homes on the market in August actually fell 6.7 per cent year-over-year to 11,523, the lowest it’s been for the month since 2010.
*Based on overall neighbourhood prices – not equivalent to a home evaluation.