The housing market in Toronto has been indicating increased stability from last month itself. In another development which makes it more favorable for buyers to invest in real estate in Toronto, the selling prices have remained considerably below the record price points seen earlier. As per reports from the TREB (Toronto Real Estate Board), the average home selling price touched $804, 584 last month in the GTA (Greater Toronto Area) which indicates a reduction of 12% from April 2017’s price point of $918, 184.
The average sales price was 0.2% lower as compared to the average sales price for March 2018 last month. The sales trend on the month-on-month basis has been based on a flattening tendency over the last couple of months after the higher drop in prices for January and February this year. The figures indicate that current changes in policies which includes new and more stringent eligibility regulations for mortgages that have been implemented from 1st January, 2018, have not quite caused a major decline in the housing market. There may be a moderation of the overall impact according to reports.
Studies also state that the lower prices have come out of the changing trends in terms of property sales. The number of detached homes that are priced over $2 million are fewer in the market for 2018 as compared to 2017. The price index indicates a reduction of 5.2% in real estate prices in Toronto for April 2018 as compared to April 2017. This makes it a better market for buyers to invest in as per reports. Home prices could increase slightly due to a stable market sometime around the second half of 2018 and that too for the high density low-rise property category and also in case of condominiums. The latter is Toronto’s most thriving market category since they are relatively affordable.
Average prices for condominiums were around $559, 343 for last month which indicates an increase of 3.2% as compared to April 2017. There were 7, 792 homes sold last month in the GTA as per reports while 16, 273 homes were listed on the market in the same month as well. The reduction in sales volumes was not that much considering the impact earlier in January 2018 upon the introduction of the new mortgage stress test regulations.
This clearly shows that the market is stabilizing and this augurs well for Toronto’s real estate prospects in the near future.