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Condo resale prices up 23.2%; sales down 21.7%; significantly better than detached and townhomes in June’s wait-and-see month

As expected, sales in June 2017 were down year-over-year, although prices were again moderately up, even with more new and active listings coming into the market.

Significantly, condo resale prices soared in pricing by 23.2% in the 416 and 21.4% in the 905, more than double the increase of detached homes, semis and town homes.

 

 

Sales on condos are down by 21.7% in the 416 and 27.6% in the 905, but this is also half the drop seen in detached homes, as buyers wait and see. An increase in interest in condos is clearly indicated as buyers enter a wait-and-see period after Ontario government market intervention.

“Recent Ipsos survey results suggest that home buying activity in the GTA will remain strong moving forward,”said Jason Mercer, TREB’s Director of Market Analysis and Service Channels.

“The year-over-year dip in home sales we have experienced over the last two months seem to be the result of would-be buyers putting their decision to purchase temporarily on hold while they monitor the impact of the Fair Housing Plan.”

 

 

Monthly sales for June were down 37.3% year-over-year, in line with expectations, while new listings were up by 15.9% year over year and active listings were up 59.6%. Mr. Mercer commented, “On the supply side of the market, it certainly looks as though buyers will benefit from more choice in the second half of 2017 compared to the same period in 2016.”

Prices by Home Type

TREB reports 2017 sales and average price by major home type for 2017 by 416 and 905 areas. Resale condos are substantially out-performing other types of homes for June 2017:

  • Condo prices up 23.2% year-over-year in 416 and 21.4% in the 905
  • Detached homes up 10.1% in 416 and 6.2% in 905
  • Semi-detached homes up 8.1% in 416 and 12.4% in 905
  • Townhouses up 10.8% in 416 and 12.8% in 905.

The move towards condo preference has been apparent for most of 2017 as prices on other types of homes because less affordable in both the 416 and 905. There’s also a indicated strong preference for pre-build and new condos.

 

 

“We are in a period of flux that often follows major government policy announcements pointed at the housing market,” said Tim Syrianos of TREB.

“On one hand, consumer survey results tell us many households are very interested in purchasing a home in the near future, but some of these would-be buyers seem to be temporarily on the sidelines waiting to see the real impact of the Ontario Fair Housing Plan.”

He continued, “On the other hand, we have existing home owners who are listing their home because they feel price growth may have peaked. The end result has been a better supplied market and a moderating annual pace of price growth. ”

Sales by Home Type

Although resales are down for all classes of homes as people “wait-and-see”, resale condos again performed better than other classes on a percentage basis:

  • Condo resales dropped 21.7% year-over-year in the 416 and 27.6% in the 905
  • Detached homes in the 416 dropped 42.9% and 45.7% in the 905, double the condo drop
  • Semi-detached home dropped 37.3% in the 416 and 40.9% in the 905
  • Townhouses dropped 33.2% in 416 and 31.4% in 905

 

Year over Year Summary

  • In 2017 7,974 sales versus 12,725, a drop of 37.3%
  • In 2017 19,614 new listings versus 16,918 in 2016, and increase of 15.9%
  • In 2107 19,680 active listings versus 12,327 in 2016, an increase of 59.6%
  • Average price in 2017 (all types averaged) $793,915 versus $747,018 in 2016, an increase of 6.3%.

 

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