If you’ve been following along with my newsletters, you know that the spring market has a reputation for fast-moving properties. After months of hibernation, we typically see new sellers and buyers who are ready to move…
That hasn’t been the case this year. Well, at least not everywhere. Most of us take a generalist approach to real estate – is the Toronto market up, or is it down? The truth is, the answer to that questions depends on the neighbourhood, the price range, and whether you’re a buyer or a seller.
My newsletter focuses on Central Toronto,* and particularly the 8 neighbourhoods (C1-C4, C8-C12) that I find myself working in time and time again. While I’m well-versed in all Toronto real estate, these are the neighbourhoods that I’ve gotten to know best. If you have questions about the market you’re in, or want to be in, I’ve got plenty of insight to share with you – it’s just too long to put it all in one newsletter!
Let’s take a zoomed out look at the market. Sale prices in the GTA were up 1.9% YoY, the City of Toronto was up 4%, and Central Toronto* was up 12%. As for how this compares to last month, we saw a jump of 4%, 9%, and 8.5% respectively. Inventory across the GTA increased nearly 26% between March and April.
As you’ll see in the infographic below, Central Toronto saw detached home prices remain flat compared to April 2018, and semi-detached were down, roughly 2%. Why? Buyers, especially in the $1-2MM range, are hesitant to pull the trigger because the 2018 mortgage stress-test is making it much harder for them to secure financing. Think about it, qualifying at an extra 2 points over the 5-year rate makes a big difference in how much income you need.
The overall climate today is more of a balanced one, rather than the seller’s market that has dominated the past few years. We’re in a market with plenty of inventory and fewer buyers.
Just remember that in the 10 years from 1997 to 2017, Central Toronto detached homes were up over 250%. In fact, the market for single dwellings in Toronto is only down 5.3% since its peak in 2017. As long as you didn’t buy in April 2017 with intentions of selling today, you’re in a great position. If you did buy in April 2017, and are planning to sell soon – let’s talk about the best way to do it!
I cannot stress the importance of having a knowledgeable realtor on your side to navigate a constantly changing market like this one. If you have questions, I’m here to answer them.
