After a prolonged dip in real estate sales, the Toronto Real Estate Board (TREB) is happy to report that sales are beginning to increase within the Greater Toronto Area. Houses for sale in Toronto jumped by 11.3% since March, while year-over-year home sales have increased by 16.8%. Toronto’s real estate market conditions have slightly increased towards a ratio of 56%, remaining on the edge of a seller oriented market. The overall sales-to-new-listings ratio for all TREB markets has also increased from 47% in April 2018, to 52% in April 2019. The growth of these new MLS listings is much lower than the growth reported for sales. Although this is still within a balanced range, it is something that may tighten market conditions as the months progress.
Trends Across Property Types
Dramatic trends are shown among real estate properties in the Greater Toronto Area, especially within the detached house and condo townhouse categories. Sales of detached houses have increased by 21% since April 2018, while sales of condo townhouses have increased by 24% since April 2018. Condos are showing the biggest changes in price, with condo apartments experiencing a year-over-year price increase of 5%, and condo townhouses experiencing year-over-year price increase of 2%. TREB indicates that the average condo apartment is being priced at $588,168, while the average condo townhouse is being priced at $583,148. It is clear that Toronto condos are a popular option on the market during this spring season.
Mortgage Stress Test Remains Problematic
While sales have increased from April of last year, it should be highlighted that sales still remain below the April level for much of the past decade. Toronto’s real estate market is still absorbing the new housing policy changes, including the nationally-mandated stress test sanctioned in 2018. Jason Mercer, the chief market officer of TREB, champions the board’s frustration that no action has been taken by policymakers to modify the stress test’s criteria. This test slows the buyer purchasing process, while also reducing what they are deemed capable of affording.
Fortunately, many people are becoming more optimistic about Toronto’s real estate market upon learning about the increase in home sales. This may represent the beginning of a tipping point, or period of correction, for Toronto’s real estate market.
Want to see additional real estate pricing and sales trends for the General Toronto Area? Check out Zoocasa’s infographics below.
***All stats are based on areas included in TREB**