New listings were up by double-digits in the Greater Toronto Area, according to April 2017 figures recently released by the Toronto Real Estate Board (TREB). Could this signal a shift to a more-balanced housing market in the future?
April 2017 saw 21,630 new listings entered into the MLS System, which is up 33.6 per cent year-over-year. New lowrise listings increased by double-digits across all home types, including detached and semi-detached and townhouses. Meanwhile, new condo listings held steady with 2016.
Total sales in the region amounted to 11,630 – down 3.2 per cent year-over-year. TREB attributes the decline to Easter’s April arrival in 2017, versus March in 2016, resulting in fewer working days this year. Historically, most sales are entered into MLS System on working days, TREB says.
“The fact that we experienced extremely strong growth in new listings in April means that buyers benefitted from considerably more choice in the marketplace,” says TREB President Larry Cerqua. “It is too early to tell whether the increase in new listings was simply due to households reacting to the strong double-digit price growth reported over the past year, or if some of the increase was also a reaction to the Ontario Government’s recently announced Fair Housing Plan.”
The average Toronto home, across all housing types combined, was up by 24.5 per cent to $920,791.
“It was encouraging to see a very strong year-over-year increase in new listings. If new listings growth continues to outpace sales growth moving forward, we will start to see more balanced market conditions. It will likely take a number of months to unwind the substantial pent-up demand that has built over the past two years. Expect annual rates of price growth to remain well-above the rate of inflation as we move through the spring and summer months,” says Jason Mercer, TREB’s director of market analysis.