As we close out the first month of 2018 I thought it would be topical to address some general market trends and conditions. 2017 was certainly a headline year for the Toronto Real estate Market. Looking back at the year it is evident that much of the story underlying home sales, listings, and sales were rooted in changes to the government policy.
I thought I would briefly summarize 2017 in this quick video touching specifically the trend of the average sale price throughout 2017 and its effect on the marketplace.
I have created a list of market facts that relate to some of the most frequently asked questions I answer:
- 92,394 were the total number of sales reported through the TREB MLS system in 2017
- 98% of purchasers who purchased their most recent home purchased it to live in it
- 31% is the average size of an intending buyers’ downpayment
- 74% of likely buyers think they would still qualify for a mortgage 2 percentage points higher
- 1.2 Million is the average asking price for a single-family home in late 2107
- While many end-user buyers have been looking to the condominium sector for the more affordable product, some are now starting to be priced out of this segment as well
What’s in store for 2018?
This is the million dollar question! I feel that strong local economic conditions coupled with an increased immigration target should result in sustained household growth. In the short term, however, government policy and higher borrowing costs could act as a drag on demand stunting home sales to a certain degree.
Despite what could be a small dip in home sales market conditions should remain balanced enough to see support for home price growth especially as we move into the end of 2018. Months of inventory is predicted to trend between 2.5 and 3 months over the course of the year which is up from what we experienced in 2016 and the beginning of 2017. However, it is in line with what we experienced in the latter part of 2017.
More balanced market conditions should result in single-digit growth to the real estate values over the course of the year.
The team and I are looking forward to the year to come. I can hardly believe that this year marks 10 years in real estate for myself personally. Time really does fly. To help celebrate a decade in the business we have been working on various gatherings that will be rolled out over the course of the year for you to enjoy.
Be sure to keep an eye on your inbox for invitations throughout the year or watch the newly added events tab at http://ericareddy.com/category/upcoming-events/ for additional details.
Here’s to a great year ahead!
Erica, Erin & Angela
** Information sourced from Toronto Real Estate Board, Ipsos, & Atlas Group. **