In the month of February 2018, sales in the GTA were down 34.9% and the number of homes listed was up 7.3% compared to February 2017.
In the freehold housing market, the general price trend year-to-date has been positive. From January 2018 to February 2018, prices are up in the majority of neighbourhoods. The Toronto freehold market remains particularly strong against the 905.
Condominiums across the GTA continue to show strength as buyers priced out of the freehold market settle for condos, millennials step up to purchase their first home, and downsizers seek smaller spaces close to amenities. A strong local economy, foreign investment, and immigration also continue to drive sales and price growth.
You would be wise to ignore media reports based solely on annual price trends. Annual price growth numbers understandably show a decline in prices compared to peak prices experienced in Q1 of 2017, which were driven by FOMO (the fear of missing out) and foreign and domestic speculation.
Year-to-date, the market is strong and we are moving into the Spring market, a peak time for market activity. On the interest rate front, the Bank of Canada held its overnight rate this past week at 1.25% citing trade concerns and will continue to carefully weigh any further rate increases this year.
Toronto Real Estate Board (TREB) Market Watch Report
Below is a market snapshot of single family and condominium apartment price growth by municipality as of February 28, 2018.
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.
To request neighbourhood information or Home Price Index (HPI) price growth for any neighbourhood in the GTA click here.
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Single Family Home Price Index
Brampton: +0.72% (1 Month), +0.85% (3 Month), -0.50% (6 Month), +1.79% (1 Year)
Mississauga: -0.33% (1 Month), -0.58% (3 Month), -2.03% (6 Month), -3.48% (1 Year)
Toronto: +1.08% (1 Month), +0.24% (3 Month), -0.47% (6 Month), -0.35% (1 Year)
Markham: -0.49% (1 Month), -2.42% (3 Month), -4.88% (6 Month), -6.79% (1 Year)
Richmond Hill: -0.82% (1 Month), -3.95% (3 Month), -9.48% (6 Month), -9.34% (1 Year)
Vaughan: +0.27% (1 Month), -0.42% (3 Month), -4.09% (6 Month), -4.30% (1 Year)
Condominium Apartment Home Price Index
Brampton: +1.33% (1 Month), +0.50% (3 Month), -2.39% (6 Month), +11.50% (1 Year)
Mississauga: +2.76% (1 Month), +2.67% (3 Month), +3.22% (6 Month), +15.42% (1 Year)
Toronto: +2.42% (1 Month), +3.80% (3 Month), +5.58% (6 Month), +20.91% (1 Year)
Markham: +4.60% (1 Month),+3.36% (3 Month), +0.87% (6 Month), +17.92% (1 Year)
Richmond Hill: +3.07% (1 Month), +4.36% (3 Month), +0.72% (6 Month), +16.17% (1 Year)
Vaughan: +2.00% (1 Month), +1.67% (3 Month), +2.66% (6 Month), +20.33% (1 Year)
*How to use these numbers: If on February 1, 2018 the price of a condo in Toronto was $500,000, it would be worth $512,100 on February 28, 2018 based on the home price index (HPI). That $500,000 condo in Toronto appreciated $12,100 in February or $432.14 per day.
Prepared by Michael De Luca, Real Estate Sales Representative at Private Service Realty (PSR), Brokerage
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