Is the Toronto Housing Market Crashing? A lot of people are waiting and talking about how overpriced the Toronto Real Estate Market is and how it's going to crash. Others say that there's a housing bubble but with only 3 months of supply and more demand than supply! how is that possible?
Watch this video where I go over:
- The Toronto Housing Market for December 2018
- Average price for a fully detached house in Toronto is $945,580
- Average price for a semi-detach house in Toronto is $755,707
- Average price for a town house is $679,164
- Average price for a condo town house is $567,290
- Average price for a condo apartment is $554,497
- What happen with the housing market in 2018 at the beginning of the year compared to the end
- Is the Toronto housing market crashing?
- My predictions for the Toronto Housing Market in 2019
Today Quang Nguyen go over the of the end of the year Market update for 2018 and in this video he's going to go talk about what the numbers look like last month in real estate market here in Toronto, this helps you keep a pulse on what’s happening here and how it may affect you whether you’re a buyer, seller, or investor.
First of I’m gonna go compare last month’s figures and then go over what the prices were like in January of 2018 and how it compares to December. So let’s get right into it
As you can see the numbers were very weak and it really slowed down which is typical during the holiday season.
So right now in the GTA, there’s about 11,431 active listings in the market, that is a huge drop from November and dropped about 30%. There were 4308 active listings and the average days a home is on the market before it sells is 31 days and currently selling at an average of 97.4% of list price.
The current average sales price was $750,180 which is down 4.8% from the month before.
Sales were at 3781 which dropped almost 40% from November!! That’s a pretty huge drop. We are definitely seeing less buyers out there. A majority of part because it’s just getting more expensive and because of the stress test and the 5 interest rate hikes we’ve had since 2017.
With increasing housing prices...more demand than supply, my opinion we’re going to see more of the same in 2019. The bank of Canada this month decided to hold off with the rate increase and said they’re expectation of growth for 2019 will be slower however I’ve heard from some of my lender partners that we might get a rate reduction this year so we’ll see what happens.
Housing supply we’re seeing about 3 months of inventory. So we’ll still seeing a sellers market. Anything under 4 months of inventory is a sellers market.
Ok now let’s look at the numbers compared to last year and see how the Toronto real estate market did.
Oh by the way when I saw Toronto I mean the Greater Toronto Area, which consists of 25 municipalities.
There are four regional municipalities surrounding the City of Toronto like Durham, Peel, York, and Halton. I just saw Toronto because let’s be honest when you meet someone you tell them you’re from Toronto and not Oakville, or Mississauga, or North York.
So here are the year to year comparison.
- Detached homes last year of Dec. was at about $989,502 and dropped to $945,580. So that drop about 4.4%
- Semi-detached was $732,077 and increase slightly over 3% to $755,707
- Condo townhouse average price was $519,250 last year and went up a little over 9% to $567,290
- Townhouse average price was $663,143 last year and went up by about 2.4% to $679,164
- Condo apartments $504,489 last year and Dec 2018 went up almost 10% to $554,497. Condo apartments saw the biggest growth.
So we’re seeing a lot of price growth in the 500K to 600K area and that’s where the vast majority of buyers are in. So what’s my predictions for 2019?
We’re most likely gonna see more or less of what happened in 2018...if the market does correct. I don’t see a big correction happening or a market crash... as I believe the market corrected itself in 2017 and we’ll probably see prices stay the same for detached homes and probably that as strong growth this year in the condo market.