February 2018 Market Update
This past month saw the second lowest sales volume for January in the past 10 years. After a whirlwind 2017 and a plethora of interest rate and policy changes, we all knew to expect a slow start to 2018.
Despite low sales activity, Toronto prices are actually steadily rising. Just in the past month, the average price for a property in Toronto is up 3.4%.
For condos, prices continue to boom with double digit annual growth across the GTA. There’s no doubt that increasing mortgage rates and previous government intervention has led people to condos for a more affordable option.
As a result, price growth in detached homes is lagging behind. Prices are rising month-to-month, however the average price is still below last year’s peak. As we get closer to warmer weather and the spring market, I’m optimistic that we’ll continue to see steady growth in the detached market. In the upcoming months, it’s unlikely prices will escalate at the same pace they did last year; the public should expect to see headlines that boast “20% housing correction” as we get closer to the one year mark of the peak.
If we keep our eye on the big picture, the next few months will be an exciting time. There are plenty of opportunities across the city and things will only get more interesting as new inventory comes out in the spring market.