Announcements 05/06/18 |

The weather warmed up and so did the market. The real estate market continued its trend upwards in the Greater Toronto Area as sales continued to increase month over month. During the month of May, there were 7,834 sales, a 0.5% increase over April that had 7,779 sales. With many home buyers “homeownership remains a sound long-term investment. Unfortunately, many home buyers are still finding it difficult to find a home that meets their needs.”
Buyers still have ample choice in today’s market. Active listings increased in May to 20,919, 15% higher than April. New listings also increased month over month with May showing a 17% increase over April. However, year-over-year new listings saw a decrease of 26.2% indicating that only serious sellers are entering the market and only serious buyers are taking advantage of the great opportunities.
The overall average sale price for all home types in May decreased year-over-year by 6.6% to $805,320. Moving forward in 2018 the gap in overall price compared to 2017 continues to shrink. 2017 saw a market where prices ran wild and in 2018 we are seeing a much healthier, stable increase in the average overall price of a property. If we compare the overall price of May 2018 to May 2016 we see a 7.1% increase or a difference of $53,322.
In York Region, there were a few markets that were in higher demand. In these markets, the ratio of average sale price to listing price was over asking.
Markham: Semi-Detached Homes – 101%
Richmond Hill: Semi-Detached Homes – 101%
King: Townhomes – 105%
“Market conditions are becoming tighter in the Greater Toronto Area and this will provide support for home prices as we move through the second half of 2018 and into 2019. There are emerging indicators pointing toward increased competition between buyers, which generally leads to stronger price growth” indicated Jason Mercer, TREB’s Director of Market Analysis.
What Does This All Mean?
It might have taken an extra month to see the real spring market emerge, but it was worth the wait. The month of May was the best month of the year for RE/MAX All-Stars Benczik Team Realty. As we move forward throughout the year, there are important factors to watch for; the provincial election, possible additional interest rates hikes and the impact of the US and Canada imposed tariffs. These external factors could have a dampening effect on an otherwise healthy and stable market.

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