Tim Syrianos, Toronto Real Estate Board President, announced that Greater Toronto Area REALTORS® reported 92,394 sales through TREB's MLS® System in 2017. This total was down 18.3 per cent compared to the record set in 2016.
Record sales in Q1 were followed by a decline in Q2 and Q3 after the Ontario Fair Housing Plan (FHP) was announced. In Q4, as the impact of the FHP started to wane, sellers seemed to have renewed interest in getting their homes listed before the effects of the new Mortgage Stress test.
Much of the sales volatility in 2017 was brought about by government policy decisions. Research from TREB, the provincial government and Statistics Canada showed that foreign home buying was not a major driver of sales in the GTA. However, the Ontario Fair Housing Plan, which included a foreign buyer tax, had a strong psychological impact on the marketplace.
The average selling price for 2017 was $822,681 – up 12.7 per cent compared to 2016.
This annual growth was driven more so by extremely tight market conditions during the first four months of the year. In the latter two-thirds of 2017, fewer sales combined with increased listings resulted in slower price growth.
"It is interesting to note that home price growth in the second half of 2017 differed substantially depending on market segment, exposing many consumers to the idea that there are 'markets within the market.'
The detached market segment – the most expensive on average – experienced the slowest pace of growth as many buyers looked to less expensive options. Conversely, the condominium apartment segment experienced double-digit growth, as condos accounted for a growing share of transactions," said Jason Mercer, TREB's Director of Market Analysis.
There is every indication that 2018 will continue to reshape the real estate landscape in Toronto. With market shifts, the new mortgage stress test, and the increasing reliance on, and interest in, technologies for both agents and consumers, it will take a savvy and adaptable agent to stay on top of both industry demands AND their clients needs.
And those are exactly the kinds of agents that we attract and keep.
If you're looking for a real estate agent, or have questions about the real estate market, don't hesitate to call us at 416-445-8855.
If you're an agent looking to increase your business and create a REAL plan for growth, reach out to our Team Leader, Eddie Coleman today at 416-445-8855 or email him HERE.