In the month of May 2018, sales in the GTA were down 22.2% and the number of homes listed was also down 26.2% compared to May 2017. While sales were down in May, they were not down as much compared to the first four months of the year, leading to increased competition among buyers, a trend that usually leads to stronger price growth.
In the freehold housing market, the general price trend year-to-date has been positive. The 416 continues to outperform the 905. However, price trends vary and areneighbourhood specific. Supply and demand factors are such that we are experiencing balanced market conditions.
Condominiums across the GTA, and especially in Toronto, 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. However, there was a slight pullback in condominium prices in some areas from April to May.
The Bank of Canada held the overnight interest rate at 1.25% on May 30th. Economists are divided on whether we should expect a rate hike in July. With looming trade war concerns between Canada and the US, among other things, an interest rate hike next month may be premature.
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 May 31, 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.
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Multifamily Investment
Mixed Use
Fixer Uppers
Estate Sales
Bank Owned
Single Family Home Price Index
Toronto: +1.32% (1 Month), +3.40% (3 Month), +3.65% (6 Month), -7.34% (1 Year)
Mississauga: -0.24% (1 Month), +2.41% (3 Month), +1.82% (6 Month), -8.32% (1 Year)
Brampton: +0.91% (1 Month), +2.69% (3 Month), +3.56% (6 Month), -6.46% (1 Year)
Vaughan: 0.04% (1 Month), +1.08% (3 Month), +0.66% (6 Month), -14.09% (1 Year)
Richmond Hill: -0.14% (1 Month), +1.80% (3 Month), -2.22% (6 Month), -18.67% (1 Year)
Markham: +0.07% (1 Month), +0.28% (3 Month), -2.14% (6 Month), -17.13% (1 Year)
Condominium Apartment Home Price Index
Toronto: +0.79% (1 Month), +4.43% (3 Month), +8.40% (6 Month), +10.12% (1 Year)
Mississauga: +1.38% (1 Month), +5.38% (3 Month), +8.19% (6 Month), +4.83% (1 Year)
Brampton: +0.66% (1 Month), +3.53% (3 Month), +4.05% (6 Month), -0.17% (1 Year)
Vaughan: -0.45% (1 Month), +1.18% (3 Month), +2.87% (6 Month), +7.66% (1 Year)
Richmond Hill: +0.31% (1 Month), -0.40% (3 Month), +3.94% (6 Month), -0.88% (1 Year)
Markham: -0.62% (1 Month), -0.76% (3 Month), +2.57% (6 Month), -1.33% (1 Year)
*How to use these numbers: If on May 1, 2018 the price of a condo in Toronto was $500,000, it would be worth $503,950 on May 31, 2018 based on the home price index (HPI). That $500,000 condo in Toronto appreciated $3,950 in May or $127.42 per day.
Prepared by Michael De Luca, Real Estate Sales Representative at Private Service Realty (PSR), Brokerage
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