GTA home sales declined 40% in March, 2018 in 12 months from March, 2017 and the average price also declined by 14 per cent, according to the latest Toronto Real Estate Board report.
TREB reported 7,228 residential transactions in March, 2018 in the GTA, a large decrease from the record 11,954 sales reported in March 2017. The monthly figure of march, 2018 is down 17.6 per cent compared to average March sales for the previous 10 years.
The real estate market in the GTA is in retreat mode following detached house prices increase by almost by one hundred per cent (100%) during last five (5) years (2012 – 2017). The speculative buying spree of home buyers continued between 2012 and 2017. And then, the Ontario implemented “Foreign Buyer’s Tax” in April, 2017 and OFSI implemented new mortgage rules including “Stress Test” from January, 2018.
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The average price in March 2018 was $784,558 for all housing categories in the GTA, including detached, semi-detached, townhomes and condos. The average price was $915,126 in March 2017.
In the city of Toronto, the average price of a home was $817,642 in March, 2018, down close to 9 per cent from $897,856 in March, 2017.
The number of high-end detached homes selling over $2 million in March 2018 was 50% of that reported in March 2017, further declining the average price.
“The effects of the (Ontario government’s) Fair Housing Plan, the new (federally mandated mortgage) stress test and generally higher borrowing costs have prompted some buyers to put their purchasing decision on hold,” Tim Syrianos, president of the real estate board, said in a news release.
The number of new listings decreased 12 per cent, year over year, in March, 2018.
“Right now, in April, 2018, when we are comparing home prices, we are comparing two starkly different periods of time. In 2017, when we had less than a month of inventory, versus this year in 2018, with inventory levels ranging between two (2) and three (3) months,” said Jason Mercer, TREB’s director of market analysis.
“It makes sense that we haven’t seen prices climb back to last year’s peak. However, in the second half of the year, expect to see the annual rate of price growth to improve compared to (the first quarter), as sales increase relative to the below-average level of listings.”
The average GTA home price in March, 2018 increased slightly from February, 2018, when it was $767,818.
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Source: Toronto Star
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