The Greater Toronto Area housing market began to thaw in April with a 16.8% increase in the number of sales and a 1.9% increase in the average selling price on a year-over-year basis. As the weather continues to warm, we should expect the same out of the real estate market in May as seasonal buying and selling pick up further. Condominiums across the GTA showed great strength in April in large part due to demand from millennials, downsizing baby boomers, and immigration to the region.
Certain asset classes and neighbourhoods continue to outperform while others do not. Buyers, sellers, and investors should seek the advice of a professional REALTOR®️ before making any decisions in the present market.
As expected, the Bank of Canada held the overnight rate at 1.75% on April 24th. A global slowdown, trade conflicts, a weak energy sector, and weak housing and consumption have led to a slower pace of monetary policy normalization. The Bank of Canada removed remarks in its statement regarding a return to neutral interest rate levels (2.25%-3.25%) and has stated that it will carefully evaluate the data and continue with "accommodative" monetary policy. Many economists believe that the Bank will not raise rates again in 2019 despite its belief that the economy will pick up in the second half of the year.
Toronto Real Estate Board (TREB) Market Watch Report
Still Fresh: TREB's Market Year in Review & Outlook Report
A few things I am reading...
More homes, more choice: Ontario's housing supply action plan (Government of Ontario)
Monthly Economic Letter: Are these the first signs of a housing crash? (Business Development Canada)
Bank of Canada maintains overnight rate target at 1 3/4 per cent (Bank of Canada)
Risk Sharing, Flexibility and the Future of Mortgages (Bank of Canada)
Below is a market snapshot of single family detached and condominium apartment price growth by municipality as of April 30, 2019.
The figures cited in this note are an average. Please contact us for neighbourhood specific information so you can make an informed decision if you are thinking about making a move.
If you want to know how prices are performing by asset class in your specific neighbourhood or any neighbourhood in the GTA you may be interested in, please click here.
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Commercial Investment
Multifamily Investment
Mixed Use
Fixer Uppers
Estate Sales
Bank Sales
Single Family Detached Home Price Index
Toronto: +1.02% (1 Month), +3.91% (3 Month), +2.02% (6 Month), +1.98% (1 Year)
Mississauga: +1.48% (1 Month), +5.39% (3 Month), +2.29% (6 Month), +2.71% (1 Year)
Brampton: +0.77% (1 Month), +2.85% (3 Month), +3.80% (6 Month), +5.47% (1 Year)
Vaughan: +1.80% (1 Month), +6.08% (3 Month), +0.75% (6 Month), -1.86% (1 Year)
Richmond Hill: +1.14% (1 Month), +1.39% (3 Month), -0.87% (6 Month), -4.70% (1 Year)
Markham: +1.06% (1 Month), 1.91% (3 Month), +0.25% (6 Month), -2.18% (1 Year)
Condominium Apartment Home Price Index
Toronto: +1.30% (1 Month), +4.39% (3 Month), +4.31% (6 Month), +7.30% (1 Year)
Mississauga: +1.18% (1 Month), +4.40% (3 Month), +9.42% (6 Month), +11.02% (1 Year)
Brampton: -0.49% (1 Month), +0.96% (3 Month), +3.50% (6 Month), +6.78% (1 Year)
Vaughan: +0.71% (1 Month), +4.37% (3 Month), +2.21% (6 Month), +1.93% (1 Year)
Richmond Hill: +0.87% (1 Month), +2.80% (3 Month), +4.00% (6 Month), +3.63% (1 Year)
Markham: -0.37% (1 Month), +0.56% (3 Month), +0.23% (6 Month), +3.68% (1 Year)
*How to use these numbers: If on April 1, 2019 the value of a detached home in Toronto was $900,000, it would be worth $909,180 on April 30, 2019 based on the Toronto home price index (HPI). That $900,000 home appreciated $9,180 in April or $306 per day.
Prepared by Michael De Luca, Real Estate Sales Representative at Private Service Realty (PSR), Brokerage
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