The Toronto Real Estate Board released its resale market results for December 2018, as well as a few stats about 2018 as a whole. Overall, we can’t say we’re surprised by the numbers.
According to TREB, there were 77,426 sales reported through the MLS system in 2018, which is 16.1% lower than 2017’s total of 92,263. New listings also fell 12.7% with 155,823 last year.
"Higher borrowing costs coupled with the new mortgage stress test certainly prompted some households to temporarily move to the sidelines to reassess their housing options. With this said, it is important to note that market conditions were improved in the second half of the year, both from a sales and pricing standpoint," says Garry Bhaura, TREB President.
The overall average selling price for all home types in 2018 was $787,300, just 4.3% lower than 2017. Prices in Toronto increased while surrounding regions saw declines. TREB says the more affordable condo market is the cause of Toronto’s increase in average price. As more people turned to the more affordable option, demand increased quicker than supply, driving prices up.
In December 2018, sales dropped year-over-year across the board for all home types. Semis and townhome sales fell the most, dropping 28.8% and 28.1% respectively. Detached home sales came in 17% lower than a year ago, while condo sales plummeted by 23.4%.
While the number of sales decreased, the average prices for all home types went up, except for detached homes, which fell 4.4% to $945,580. In the 416 region, the average detached home will still cost you $1,145,892. The greatest price gain was in the condo market with the average price jumping nearly 10% to $554,497.
"After spiking in 2017, new listings receded markedly in 2018. In many neighbourhoods, despite fewer sales from a historic perspective, some buyers still struggled to find a home meeting their needs. The result was a resumption of a moderate year-over-year pace of home price growth in the second half of the year. Price growth was strongest for less-expensive home types, as many homebuyers sought more affordable homeownership options," says Jason Mercer, TREB's Director of Market Analysis and Service Channels.
Next month, TREB will release their Market in Review and Outlook Report. We’re eager to read it and see what they anticipate for 2019!