Brian Madigan LL.B., Broker
BRMadigan@iSourceRealEstate.com

RE/MAX West Realty Inc.,
Brokerage
Independently owned and operated

96 Rexdale Blvd. 
Toronto, Ontario 


Phone: 416-745-2300
Toll Free: 1-888-507-0817

 

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Indicators Point Down in GTA in early May 2017 Results

May 19, 2017 - Updated: May 19, 2017

Toronto and GTA Markets Tip Over in May 2017 (7 of 8 Indicators Down)

 

Due to the volatility in the real estate market you will be interested in the Toronto Real Estate Board’s most recent statistics.

 

MAY 2017 TREB MID-MONTH STATISTICS

 

May 17, 2017 – Greater Toronto Area REALTORS® reported 5,021 transactions through TREB’s MLS® System during the first 14 days of May 2017. This result was down by 16 per cent in comparison to the same time period in May 2016.

 

The decline in sales was greatest for low-rise home types, including detached and semi-detached houses and townhouses. The number of new listings was up by 46.9 per cent year-over-year to 12,626, compared to 8,596 new listings entered during the first two weeks of May 2016.

 

Growth in new listings was strongest for low-rise home types. From a geographic perspective, year-over-year growth in new listings was much stronger in the GTA regions surrounding the City of Toronto compared to the City itself.

 

Growth in average selling prices remained very strong compared to last year. Through the first 14 days of May, the average selling price for all home types combined was $890,284 – up 17.3 per cent compared to the same period in 2016.

 

For the TREB Market Area as a whole, the strongest rates of price growth were reported for condominium apartments, at 28.5 per cent. However, annual rates of price growth for low-rise home types remained strong as well – ranging from 16.7 per cent for detached houses to 25.5 per cent for semi-detached houses.

 

While we have certainly experienced a better supplied market over the past two months, inventory levels remain low in many neighbourhoods, hence the continuation of double-digit rates of price growth. If we continue to see new listings growth outstripping sales growth we could see the pace of price growth slow further.

 

COMMENT

Let’s have a look at the recent numbers, just the last two weeks, never mind about the “year over year” which always smooths things out.

 


Toronto – 416

 

Detached

 

$1,561,780           March

$1,578,542           April

$1,550,873           May 15      

Movement            down, lower than March

 

Semis

 

$1,089,605           March

$1,104,047           April

$1,064,260           May 15 

Movement            down, lower than March

 

Townhouses

 

$761,128              March

$793,129              April

$722,928              May 15 

Movement            down lower than March

 

Condo Apartments

 

$550,299              March

$578,280              April

$579,589              May 15 

Movement            up from April

 

Suburbs in GTA – 905

 

Detached

 

$1,124,088           March

$1,098,827           April

$1,046,870           May 15 

Movement            down lower than March

 

Semis

 

$742,501              March

$727,218              April

$700,131              May 15

Movement            down lower than March

 

Townhouses

 

$690,202              March

$673,942              April

$639,452              May 15

Movement            down lower than March

 

Condo Apartments
 

$440,950              March

$449,792              April

$442,147              May 15

Movement            down but higher than March

 

We have 8 indicators of market direction. Seven point down. Only condos in the City are up. Condos in the suburbs are down from April but up from March.

 

In both cases, the condo apartment represents the entry level into the real estate market.

 

So, never mind what life was like in 2016 and the “year over year” comparisons, right now the market direction is clearly and overwhelmingly “DOWN”.

 

Likely this will mean that the market in 2017 peaked early due to the shortage of listings, but it is now in the process of re-balancing and once we have the full May numbers as of the 31st, traditionally the peak of the Spring market we shall still see a big jump in prices over the previous year.

 

If you would like to discuss the market, please give me a call.

 

Brian Madigan LL.B., Broker

www.iSourceRealEstate.com


Tagged with: 15 may 2017 market down indicators down balance re-balancing toronto gta
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Brian Madigan LL.B. Broker

RE/MAX West Realty Inc. Brokerage

Independently owned and operated

96 Rexdale Blvd. , Toronto Ontario,

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