Market Watch March 2018

Page 1

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Economic Indicators GTA REALTORS® Release March Stats Real GDP Growth

Q4

i

2017

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1.7%

Toronto Employment Growth ii

February

2018

4.0%

Toronto Unemployment Rate

February

2018

5.8%

Inflation Rate (Yr./Yr. CPI Growth) ii

February

2018

2.2%

Bank of Canada Overnight Rate iii

March

2018

2018

The MLS Home Price Index Composite Benchmark was down by 1.5 percent on a year-over-year basis for the TREB market area as a whole. The overall average selling price was down by 14.3 per cent compared to March 2017.

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3.34% “Right now, when we are comparing home prices, we are comparing two starkly different periods 4.15% of time: last year, when we had less than a month of inventory versus this year with inventory 5.14% levels ranging between two and three months. It makes sense that we haven’t seen prices climb back to last year’s peak. However, in the second half of the year, expect to see the annual rate of price growth improve compared to Q1, as sales increase relative to the below-average level of listings,” said Jason Mercer, TREB’s Director of Market Analysis.

Sources and Notes: i - Statistics Canada, Quarter-over-quarter growth, annualized ii - Statistics Canada, Year-over-year growth for the most recently reported month iii - Bank of Canada, Rate from most recent Bank of Canada announcement iv - Bank of Canada, Rates for most recently completed month

Sales & Average Price By Major Home Type1,7 Metrics Sales Average Price March 2018 416 905 Total 416 905 2018 Detached Semi - Detached Townhouse Condo Apartment

706 236 260 1,573

2,414 450 865 610

3,120 686 1,125 2,183

Total

$1,293,903 $1,032,358 $735,650 $590,184

$921,515 $651,967 $609,375 $449,967

$1,005,779 $782,831 $638,558 $551,003

-17.1% -5.0% -3.5% 7.1%

-17.9% -12.4% -11.7% 2.1%

-17.1% -8.8% -9.5% 6.1%

Year-Over-Year Per Cent Change Detached Semi - Detached Townhouse Condo Apartment

Detached -41.1% -47.7% -46.3% Semi --31.6% Detached -30.6% -28.5% Townhouse -27.8% -35.9% -34.2% Condo-34.7% Apartment-32.7% -32.0%

7,228

March 2018

March 2017

TREB MLS® Average Price 1,7

$915,126

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While the change in market conditions certainly played a role, the dip in the average selling price was also compositional in nature. Detached home sales, which generally represent the highest 3.45% price points in a given area, declined much more than other home types. In addition, the share of high-end detached homes selling for over $2 million in March 2018 was half of what was reported in March 2017, further impacting the average selling price.

11,954

$784,558

11 Year Year 33 Year Year 55 Year Year

“TREB stated in its recent Market Outlook report that Q1 sales would be down from the record pace set in Q1 2017,” said Mr. Syrianos. “The effects of the Fair Housing Plan, the new OSFImandated stress test and generally higher borrowing costs have prompted some buyers to put their purchasing decision on hold. Home sales are expected to be up relative to 2017 in the second half of this year.”

1.25%

Mortgage March 2018 2018 Month RatesMarch

TREB MLS® Sales Activity 1,7

The number of new listings entered into TREB’s MLS® System totaled 14,866 – a 12.4 per cent decrease compared to March 2017 and a three per cent decrease compared to the average for the previous 10 years.

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Prime Rate iv

March

TORONTO, ONTARIO, April 4, 2018 – Toronto Real Estate Board President Tim Syrianos announced that Greater Toronto Area REALTORS® reported 7,228 residential transactions through TREB’s MLS® System in March 2018. This result was down by 39.5 per cent compared to a record 11,954 sales reported in March 2017 and down 17.6 per cent relative to average March sales for the previous 10 years.

March 2018

March 2017

Year-Over-Year Summary Sales New Listings Active Listings Average Price Average DOM

1,7

2018

2017

% Chg.

7,228 14,866 15,971 $784,558 20

11,954 16,978 7,865 $915,126 10

-39.5% -12.4% 103.1% -14.3% 100.0%


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