Detached homes in Toronto continued to see a buying frenzy according to the latest numbers from the Toronto Real Estate Board (TREB). The numbers show that new listings improved from December, but still remained lower than the same time last year. The relative lack of inventory when compared to demand are likely the reason prices moved higher.
Prices Rose Over 20% In All But 11 Wards
The benchmark price of detached homes rose across the Greater Toronto Area (GTA). The GTA averaged a 26.3% year over year increase, bringing the average price to $1,068,670. This trend was slightly higher in the 905, where prices rose 27.8% to $999,102. By contrast, the 416 “only” increased by 26.8%, taking prices to $1,336,640. In fact, only 11 of the city’s 44 wards did not see price appreciations above 20% for single family detached homes.
Toronto Detached Prices January 2017
The 905 Saw Sales Increase, While The 416 Saw Sales Decrease
Sales were mixed across the GTA, but likely for different reasons. The whole region averaged 7.8% growth, for a total of 2,261 detached sales. This trend was strongest in the 905, where the number of detached homes sold rose 11.9% to 1,795. The 416 went the opposite way, experiencing a decline of 5.5% to 466 sales. A decline in sales generally isn’t great, but when looked at with the sharp drop in listings it tells a different story.
Toronto Detached Sales January 2017
There’s Less New Listings This Year
The great inventory crunch continues across the GTA apparently. January 2017 saw 3,244 new listings, a decline of 15% from the year prior. The majority of the new listings were in the 905, where 2,525 detached units hit the market. The city proper, saw 719 new listings for detached units, a decline of 24% from the year prior. This decline in listings is the most obvious explanation for the drop in sales, not weening demand.
The first month of the year was looking pretty rosy if you’re looking to sell, pretty gloomy if you’re a buyer. It’s hard to say if prices are deserving of this highs, but the lack of inventory relative to demand will likely continue to push prices higher. How long can this go on? As long as buyers can continue to leverage enough capital to keep pushing prices higher.
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Photo: Joseph Morris.