In January 2017 GTA REALTORS® reported 5,188 residential transactions through TREB’s MLS®, marking a good start for 2017 market. This number, in comparison with 4,640 sales in January 2016, makes 11.8 per cent increase in sales.
Condos and detached houses remained the most popular on the market. A total of 1,636 condos were sold this month, which is 26.7 per cent more than last January. Detached houses recorded amazing 2,261 sales, rising by 7.8 per cent. Town houses went up 7.2 per cent, but semi-detached houses dropped to -5.8 percent in sales.
Toronto Real Estate Board President Larry Cerqua is optimistic on the sales front for 2017, saying that more first-time buyers are heading for ownership this year:
Home ownership continues to be a great investment and remains very important to the majority of GTA households. As we move through 2017, we expect the demand for ownership housing to remain strong, including demand from first-time buyers who, according to a recent Ipsos survey, could account for more than half of transactions this year. However, many of these would-be buyers will have problems finding a home that meets their needs in a market with very little inventory.
Listings remain the biggest issue on the market. Yet again, the percentage of active listings dropped by outrageous 49.5 per cent and new listings dropped by 17.6 per cent, causing the average price to rise by 22.3 per cent from $630,193 in January 2016 to $770,745 this year. The MLS® Home Price Index (HPI) Composite Benchmark price was up by 21.8 per cent on a year-over-year basis in January.
Jason Mercer, TREB’s Director of Market Analysis confirmed we have a serious problem at hand:
The number of active listings on TREB’s MLS® System at the end of January was essentially half of what was reported as available at the same time last year. That statistic, on its own, tells us that there is a serious supply problem in the GTA – a problem that will continue to play itself out in 2017. The result will be very strong price growth for all home types again this year.