Despite predictions of negative double digit declines, the City Of Toronto real estate market held on in January delivering a 1.4% increase in average sold prices as compared to January 2018.
The average selling price for a property in the City Of Toronto now sits at $777,674 up 1.4% from the same time last year when it was $766,616.
This is exactly the kind of increase that reflects a stable and sound market, not the double-digit monthly increases that became common place in 2016 and early 2017. Double digit increases in average sale prices become unsustainable and unfortunately can lead to painful corrections.
The number of property sales in the City were down 6% for the month of as compared to the same time last year. There were 1,422 property sales reported in January 2019 as compared to 1,517 sales that took place in January 2018.
The decline in the number of property sales in the City was not caused by a decline in demand. Rather the decline was driven by a chronic shortage of supply. At the end of January, the City of Toronto found itself with only 1.9 months of inventory and it took only 29 days for all properties in the City of Toronto to sell.
Another positive aspect to January’s performance is the supply of new properties that came to market. In January, 3,144 new properties became available to buyers. This is a favorable 13.3% increase compared to the 2,776 new listings that became available last year.
Entering February, active listings were slightly higher than last year. February began with 3,575 active listings compared to the 3,460 available last year.
Sold prices in Toronto’s high-end luxury market continue in a stable holding pattern. In January, 42 properties having a sale price of $2 million or more were reported sold. This compared to 65 luxury properties reported sold during the same period last year.
While the number of luxury property sales declined 36%, the average sold price remained basically the same (actually experiencing a tiny increase of 0.5%).
Detached properties in Toronto’s central districts are the most expensive properties in the Greater Toronto Area. All detached properties in these districts sold for 95% of their asking price.
This ratio was much lower than detached properties in other trading districts. For example, all detached properties in Toronto’s eastern districts sold for 100% of their asking price. The fact that the average sale price in the eastern districts is half ($916,588) that of the central districts ($1,938,617) is no doubt responsible for this divergence.
Condos continue to be the most affordable housing form, but again, because of supply, average prices continue to increase. In January, the average sale price in the City of Toronto increased by almost 9% to $591,444.
In Toronto’s central districts, where most condominium apartment sales are located, the average sale price came in at $677,997, a 10% increase compared to last year’s prices.
n January, there were only 1,738 condominium apartments for sale in the City of Toronto and only 1,093 in Toronto’s central districts where most sales take place. This shortage of supply will continue to put upward pressure on prices, constrained only by affordability.
Although it is a little early in the year to be forecasting for 2019, January’s results – sales volumes, price increases and increases in supply – all point to a healthy 2019.
Last year only 29,863 residential properties were reported sold, the lowest number since the recession of 2008. Barring any unexpected economic events this year, we should see between 31,000 and 33,000 reported sales, with average sale prices increasing by about 2% to 3%.
January’s average sale price came in at $777,674. Last year’s annual average sale price was $766,616. By year-end Toronto and area’s average sale price should be approximately $800,000. From a long-term sustainability prospect we should be thrilled with this number.
Victoria Boscariolis a real estate agent in Toronto Canada with Chestnut Park Real Estate Limited Brokerage. With over 20 years experience, Victoria has been helping people successfully buy and sell condos and houses in Yorkville and downtown Toronto. As a Certified International Property Specialist (CIPS) she has worked with Buyers from around the world moving to Toronto from China, Russia, Brazil, India, South Africa, United Arab Emirates, Jordan, Cyprus, Italy, Germany, The United Kingdom, Australia and the United States. By building an international marketing strategy for every property she puts up for sale, Victoria's listings of Toronto homes and luxury condos get global exposure that attract qualified buyers from around the world.
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purchase, sale and lease of real estate as part of a cooperative selling system. Canadian Real Estate Association Last Updated: 7/17/2019 11:15:50 AM