January 2018 began very similar to how December 2017 ended. There was a total of 4,019 sales in January, a 22% decline year over year. Important to note that January 2017 produced a record 5,155 amount of sales. Toronto Real Estate Board President Tim Syrianos indicated that we can “expect the pace of home sales to pick up, as the psychological impact of the Fair Housing Plan starts to taper off and home buyers find their footing relative to the new Stress test”
The market is getting ready for the spring season with the number of new listings increasing by 17.4% when comparing it to January 2017. When comparing with the previous month, a lot has changed. December saw 6,330 new listings get added, a 26% increase, indicating the market is getting ready for the Spring season.
Active listings increased by a whopping 136.3% year over year, with 11,894 properties on the market compared to 5,034 in 2017. This increase is a perfect example of how low inventory levels were in 2017. There were not enough sellers out there for the number of buyers and homes were being snatched up left, right and centre. This created a hyper-aggressive seller’s market that became unsustainable throughout the beginning of 2017.
At $736,783, the average price for all home types in the GTA was 4.1% lower than January 2017 but virtually flat (0.2% increase) versus December 2017.
The average price for a detached home in Markham declined by 18% when compared to the previous month, to $1,220,595 in January 2018. The average detached property in Markham was now taking 37 days to sell versus the 30 days it was taking in December 2017.
Stouffville detached homes had their average price increase by 14% in January 2018 to $1,126,576 when compared to December 2017. The average days on market increased from 30 days in December 2017 to 51 in January 2018.
What Does This All Mean?
At this time last year, the marketplace was in the middle of a housing spike that was driven by remarkably low inventory. This year, the beginning of January saw the implementation of OFSI’s (Office of the Superintendent of Financial Institutions) new mortgage stress test and the market reacted with some segments being flat or down when comparing year over year.
We have seen a healthy start to 2018, with the addition of new listings and prices continuing to stabilize. Individuals who could not sell in 2017 are finding success in this current market. Market conditions will support a return to positive price growth for many home types in the second half of 2018. Buyers and sellers are realizing when working with a team who has over 27 years of experience and unparalleled knowledge their home can be sold