Market Update for Jan 10th
Happy New Year! A new year and new decade begins. Let’s sum up the real estate market for 2019.
• GTA realtors reported 87,825 sales through TREB’s MLS system — up 12.6%
compared to 78,015 for 2018 – the decade low.
• New listings entered into the MLS system (153,000) were down 2.4%
compared to 2018
• The average selling price for the GTA was up 4% to $819,319 and for the
City of Toronto the average price was up 5.6% to $874,834
• The average sale price for a condo in Toronto was up 10.3% to $656,233
compared to $594,381 in 2018.
The real estate market surprised most housing economists in 2019. It started off slow with slumping sales and price declines but quickly turned a corner as home buyers who were on the sidelines moved back into the marketplace starting in the early spring. Buyer confidence rallied with a strong economy and declining mortgage rates over the course of the year.
With home sales showing no signs of fading in the new year, all eyes will be on the supply issue. Buyers are hoping that a new year will bring a rush of new listings to market, but industry leaders are not so optimistic as the market ended last year with a plunge in inventory that sent prices in the opposite direction. Toronto’s home prices are predicted to rise 6% this year. This is due to a strong local economy, high employment, strong immigration and mortgage rates are unlikely to rise.
It is too early to predict what will happen. Generally speaking, January is a slow month for new listings, but demand is high and the weather has been kind so hopefully we will see a faster release of new properties on the market.
The waiting game begins!