April's numbers are out
It's been such an interesting time in the real estate market since the beginning on 2018. There's been so many changes in the Toronto real estate industry. Coming off the market's peak from last year and into January's mortgage stress test, we're now starting to see the market stabilize and the mindset of homeowners coming to terms with the new normal.
TREB MLS® Sales Activity
On a year over year basis, the number of sales through TREB MLS® is down 31.1%. This number is mostly effected by the decrease in amount of sales of detached home which is down 38.4% from last year verses the amount of sales of condos apartments compared to last year, just down 26.0%.
TREB MLS® Average Sales Price
Just like the number of sales, the average sale price for properties on TREB MLS® was down 12.4% from the year before. Even more than the sales activity, detached homes are really responsible for this total drop in average sales price. Detached properties sold for a total of 14.4% less than a year prior while condo apartments actually increased in value 3.2% on average. This is a bigger deal than it seams given the crazy market we had in spring of 2017 where most of the growth was in the condo property category.
Interestingly, the condo apartments are the only category to increase in average price in the year over year comparison. The average price of townhouses is down 7.8% total and semi-detached is down 6.4% total.
What does it all mean?
We're currently in a market correction. The Toronto real estate marketing in 2017 was a bubble and in my opinion all the new mortgage rules implemented and foreign buyer tax stopped the market from falling out of the sky and help give it a soft landing. As Mr. Syrianos mentions in the full article (linked below) real estate is still a very solid long term investment. Toronto's strong and diverse labour market and continued healthy population growth will support long term home price appreciation.
To get all the details, download the full article provided by the Toronto Real Estate Board.