December 2017 Market Update
The Toronto Real Estate Board released the December 2017 market statistics today. What the information demonstrates, is that the key trends we've witnessed over the past few months are continuing at a high level; detached home prices in Toronto are still low compared to the spring market, and townhouses and condos are driving the market.
What's interesting about this dynamic, is the lack of uniformity - how often is there such an extreme gap between the detached home market and the condo market.
I think there are two key reasons for this (and they aren't mutually exclusive): Volume, and affordability. There are simply many more people in the market for condos, for both investment and end use. This is also driven because condos are so much more affordable.
A subset of this is, that since the implementation of the fair housing plan and the subsequent pullback in the market, detached homeowners have stayed away from the market. Until the market stabilizes, owners who aren't in a rush to relocate are simply not comfortable trading their largest asset. This response has resulted with much lower market activity. Detached homes sales volume is down nearly 20% compared to condo's 7% reduction.
As we enter into the holiday season and colder weather, I expect the market to continue slowing in terms of both activity, and prices averages, as inventory slows and buyers hold back.
Stay tuned for upcoming post on what to expect in the Toronto Real Estate market come 2018!