April 2017 Real Estate Market- 3 of 8 Indicators are Down!
Generally, everyone is excited about the Toronto real estate market being so “hot”.
But, when we look at the numbers, things certainly seemed to have cooled off in April.
There are two distinct areas in the Greater Toronto area, Toronto proper, referred to as the “416” and the suburbs, being the rest of the GTA, commonly the “905”. Then, we also have to break that down into some market segments, detached, semis, townhouses and condo apartments.
Usually, we would look to year over year numbers, but direction can first be noticed in the month to month numbers. So, let’s look at April 2017 and see how it compares to March.
The general overall figures for the GTA across all types of buildings for single family homes:
While across the board we do see a slight increase, let’s break down those numbers somewhat.
Toronto – 416
Suburbs in GTA – 905
Of our 8 individual segments, 5 were up, and 3 were down. That should mean something.
Detached houses in the City are up by 1.1%, and while that’s still positive, it’s below the 10 year rate of increase.
Townhouses in the City were up 4.2% and condos were up 5.1%. The media stories focussed on the Townhouses and the Condos.
When we switch over to the rest of the GTA, we actually find that 3 segments are in decline: detached, semis and townhouses. Only one segment is increasing, namely condos in the suburbs, which is the entry level for home ownership.
What does this mean? What segments are leading indicators? Where is the market going from here?
All in all, we have 5 ups and 3 downs. The ones that are up, are not up by that much. It would certainly suggest that for some segments, March will have been the height of the market and for others it looks like April will be the height. Overall, the market is fading somewhat.
If you would like to discuss the market, please give me a call.
Brian Madigan LL.B., Broker