The long winter in the Greater Toronto Area seems to have chilled the housing market with home sales down 2.4% in February 2019 compared to February 2018. On a seasonally adjusted year-over-year basis, the number of homes listed in February was also down leading to tighter market conditions. However, as the clouds clear this week and temperatures rise, we will get our first true glimpse of Spring. With Spring, we can expect the typical seasonal uptick in market activity even despite policy measures and rising interest rates that have been cooling regional markets.
The average selling prices for all home types combined were up 1.6% in February 2019 compared to February 2018. 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.
The Bank of Canada held the overnight rate at 1.75% at its March 6th meeting. This decision was in line with the recent decisions of other central banks. A global economic slowdown, trade tensions, a drop in global oil prices, housing markets, household debt levels, and slowing consumption continue to be monitored by the Bank as they weigh future rate decisions. Given the economic data of recent months, many economists expect the Bank to hold off on rate increases until later in 2019.
Toronto Real Estate Board (TREB) Market Watch Report
Still Fresh: TREB's Market Year in Review & Outlook Report
A few things I am reading...
Economic Progress Report: Sensible Shifts in Household Spending (Bank of Canada)
Canadian 'Solo' Recession Risk: Rhetoric vs Reality (TD Economics)
A first-time homebuyer's guide to avoiding the house poor trap (Livabl)
Below is a market snapshot of single family detached and condominium apartment price growth by municipality as of February 28, 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 (Offline for Maintenance)
Multifamily Investment
Mixed Use
Fixer Uppers
Estate Sales
Bank Sales
Single Family Detached Home Price Index
Toronto: +0.71% (1 Month), -1.04% (3 Month), +0.16% (6 Month), +1.39% (1 Year)
Mississauga: +1.36% (1 Month), -0.36% (3 Month), +0.12% (6 Month), +2.07% (1 Year)
Brampton: +0.12% (1 Month), +1.10% (3 Month), +1.80% (6 Month), +4.37% (1 Year)
Vaughan: +1.69% (1 Month), -1.99% (3 Month), -3.60% (6 Month), -4.42% (1 Year)
Richmond Hill: -1.36% (1 Month), -3.98% (3 Month), -4.81% (6 Month), -4.98% (1 Year)
Markham: +0.91% (1 Month), -0.07% (3 Month), -1.32% (6 Month), -2.02% (1 Year)
Condominium Apartment Home Price Index
Toronto: +2.06% (1 Month), +2.34% (3 Month), +2.89% (6 Month), +8.70% (1 Year)
Mississauga: +1.49% (1 Month), +4.91% (3 Month), +5.90% (6 Month), +12.24% (1 Year)
Brampton: +0.87% (1 Month), +3.15% (3 Month), +3.54% (6 Month), +9.73% (1 Year)
Vaughan: +1.61% (1 Month), -1.21% (3 Month), -0.72% (6 Month), +0.87% (1 Year)
Richmond Hill: +1.20% (1 Month), +2.89% (3 Month), +0.71% (6 Month), +1.29% (1 Year)
Markham: -1.48% (1 Month), -2.12% (3 Month), -2.03% (6 Month), +1.43% (1 Year)
*How to use these numbers: If on February 1, 2019 the price of a condo in Toronto was $500,000, it would be worth $510,300 on February 28, 2019 based on the Toronto home price index (HPI). That $500,000 condo appreciated $10,300 in February or $367.86 per day.
Prepared by Michael De Luca, Real Estate Sales Representative at Private Service Realty (PSR), Brokerage
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