Headed into the second quarter of 2018, the Toronto Real Estate Board is feeling confident about the health of the market.
Though sales for the month of April were down by 32.1% year-over-year – 7,792 sales were reported through TREB’s MLS system – a recent poll conducted by Ipsos on behalf of TREB reveals that the majority of buyers are purchasing a home to live in. “This means these buyers are treating home ownership as a long-term investment,” says Tim Syrianos, president of the TREB.
The average selling price in April was $804,584, which represents a year-over-over decrease of about 12.4%. The dip can be attributed to both policy changes that have impacted the market, as well as changes in the type of homes being purchased. In April 2017, sales of $2-million-plus detached homes accounted for 10% of all sales; this April, they accounted for 5.5%.
“While average selling prices have not climbed back to last year’s record peak, April’s price level represents a substantial gain over the past decade … A strong and diverse labour market and continued population growth based on immigration should continue to underpin long-term home price appreciation,” Syrianos says.
Once the market moves beyond the volatility caused by policy changes, TREB expects moderate increases to home prices in the second half of the year and a “sustained pace of price growth in line with a strong local economy and steady population growth.”