December 2017 GTA Market Update

15 January 2018
Life and the City

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This past year, we saw a considerable shift in the sales-to-prices ratio as a number of major factors came into play. The number of total sales decreased by 18% in 2017, while the final average for the entire year came out to a 12.7% increase over 2016's numbers. 

Conditions in the Toronto area remained on trend last month, with a higher than typical number of new listings, remaining very moderately in seller's market territory.

According to the newly-released 2018 RE/MAX Housing Market Outlook Report, this past year saw the single-family detached home and condo markets diverge on distinctly different paths in the Greater Toronto Area (GTA). This trend is expected to continue into the year ahead, as a mix of relative affordability for condo units and price appreciation for detached homes in recent years, combined with government policy changes, is helping to push an influx of buyers toward condo ownership. 

The average sale price of a GTA home in December was $735,021, a modest result when compared to 2016 on account of a higher amount of sales in the lower priced condo segment.

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Here is a summary of the significant real estate milestones and notable stats for December 2017: 

  • 4th highest number of overall sales for the month of December (4,930) and up by a few hundred homes from October

  • 2017 had 92,394 total sales - a considerable drop from 113,000 sales at the same time the previous year, and a drop to 5th place in sales since 2012

  • The ratio of sales-to-listings dropped back to 38.1% in December – a very moderate seller’s market

  • The average sale price dropped slightly to $735,021, but was flat in comparison to the same time in 2016 due to a higher sales of lower priced condos

  • The final average for the entire 2017 year ended up at $822,681 – 12.7% higher than for 2016

  • Sales in the month were down 7.1% from one year ago

  • The GTA real estate market overall averaged the days-on-market at 27 – still a short span compared to many other Canadian markets

  • It’s becoming clear that first-time buyer aspirations are now shifting to a condominium lifestyle – condo sales took a ‘highest ever’ 40.3% of the total market in December, which is about 2-3% more than average

  • Downtown condo listing numbers were up in C01 and down in C08 from last year at this time

  • The downtown condo days-on-market average was 20-21 days – slightly faster than the overall market

  • The ratio of sales-to-listings for condos downtown ranged between 65.4% in C01 to 110% in C08 indicating a very strong seller’s market, and well ahead of most of the GTA

  • The average sale price for downtown condominium suites is still up by roughly $120,000 from 2016

  • Building on this higher demand due to better affordability, condo appreciation in the two main downtown markets averaged 24% year-over-year

  • Markets in York Region and some other 905 neighbourhoods have suffered the most from the market slowdown – York Region is now showing that they’re in ‘buyer market’ territory

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Questions about the market, or want to know the current market value of your home, or what properties have been selling for recently in your neighbourhood? Get in touch with us! We're here to help!