April was another busy month in the Toronto real estate market. New listings finally started to appear (21,630 new listings for the month, up 33.6% over April 2016) giving buyers more choice. Coupled with 11,630 sales for the month (down 3.3% from the 12,016 recorded in April 2016), that allowed available listings to edge up 3% ,to 12,926 by the end of the month.
Price pressure remained in place, though, with the average sale price up 24.5% to $920,791. Note that the average sale price in March was $916,567, meaning prices remained essentially flat month-to-month. So, although we saw another big year-over-year price, this could be a sign that prices are leveling out, which will come as a relief to buyers.
The condo segment in the 416 had an impressive month. Sales volume was up a modest 8%, but prices soared 32.3%, keeping pace with last month’s increase.
The long-awaited increase in the supply of available listings is great news for the market, but it still leaves us far from historical levels. For example, in April, 2007 TREB reported 22,829 available listings, almost double the current level. The average Days on Market (i.e. how long the average listing took to sell) was around 30 days. Last month it was just 9, indicating how short-lived our supply really is. If we are lucky, we’ll get a couple of months of increasing supply, which should bring some balance to the market.
Right now it looks like the price increases are locked in, but it’s important for sellers to note that the market is not the same as it was in Jan-Feb-March. The new supply is taking some of the heat off buyers, meaning they don’t have to put everything on the line for every house that they see. So, while we are still seeing multiple offers on a lot of houses, we won’t get that for every single listing. Marketing – especially pricing – is more important than ever. But, we’ve seen this before; almost every spring, in fact! We make the adjustment, and move on.
The bottom line is that it’s still a great time to sell, and an even better time to buy.