Property sales for the month of April clearly indicate that the residential real estate market in the City of Toronto is strong and robust. This is very different from the first 3 months of 2019, when the resale market was sluggish as the result of lack of inventory and not a decline in buyer demand.
April was the first time in many months that buyers had more choice than had been previously available to them as 5,734 new listings came up for sale, an 8% increase as compared to the same time last year when there were only 5,299 new listings.
The number of properties in April sold was 3,234 up 10% from April 2018 when there where 2,946 property sales. This is an obvious indicator that Buyers were waiting in the wings for more properties to come up for sale.
In April all property types sold (on average) in only 17 days, an astounding number when it is considered that this number represents the sale of all properties in the City, including condominium apartments. In some neighbourhoods the pace of sales was even faster. For example, all semi-detached properties in the neighbourhoods of Riverdale, Leslieville and the Beaches sold in only 8 days, a pace not seen since the frenzied period leading up to April 2017. In fact, all semi-detached properties throughout the entire 416 area of Toronto sold in only 10 days, and for average sale prices of 107% over asking.
Condominium apartment sales were just as resilient. All condo sales in the City of Toronto took place in only 17 days with an average sale price of $637,181 and achieved 100% of the asking price. This was also true in Toronto’s central districts were more than 60% of all Toronto condo sales are recorded. What is a troubling about these results is that for the first time the average sale price in the central core exceeded $700,000. The once affordable alternative housing is now becoming quite pricey in Toronto.
With sales happening at these speeds, it is not surprising that the average sale price also increased In April. The average sale price for a property in the City of Toronto came in at $903,992. This 4.4% higher than last April’s average sale price of $865,817. With the average sold price now over $900K this is similar to levels reached back in April 2017 that caused the provincial government to implement various measures to try to cool the resale market, including the implementation of 15% foreign buyer’s tax.
It should be added that that number includes condominium apartment sales, which account for 50% of all reported sales. If condos are removed for this calculation the average sale price for detached and semi-detached property sales in the City of Toronto comes in at $1,193,000.
In April we saw some improvement in the number of high-end sales. April saw 189 reported sales having a sale price of $2 Million or more. This compares favorably with the 168 luxury sales that were reported sold last year, a 12.5% increase. These numbers were one of the first increases recorded in the luxury segment of the market in sometime. Although most of these sales were represented by detached properties, it is worth noting that almost 10% of the sales reported in this price-point were condos. Only 8 of these $2 Million or more reported sales were semi-detached properties.
It is clear from April’s data that the resale market has recovered in the City of Toronto but continues to lag in the 905 regions of the greater Toronto area. In the 905 regions sales took place at a slower pace, and average sale prices are substantially lower. As indicated earlier, the average sale price for all properties sold in the City of Toronto came in at $904,000, including condos.
In the 905 region the average sale price was only $820,000, almost 10% lower. Similarly, all sales in the City of Toronto took place in only 17 days and at 101% of asking prices. In the 905 regions sales took 19 days and at only 99% of asking prices. As April came to an end the 905 regions had 2.6 months of inventory, whereas the City of Toronto was reduced to only 2 months of inventory.
The looming concern in all this good news is affordability. It is exciting and invigorating to see how resilient the City of Toronto resale housing market is, however with average sale prices approaching $1 Million, buying a property in the City may soon be beyond the reach of most first-time buyers.
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: 9/21/2019 11:18:03 AM