In the recent TREB Report, outlining the month of January, we see various interesting trends in the market. The biggest thing we see is a positive shift in the market, perhaps giving signals that the market is bouncing back.
Here are some of the facts:
- GTA REALTORS® reported 4,375 transactions through the TorontoMLS system in January 2013. Even though this was a slight decline in comparison to January 2012 (4,432 transactions), it was much better than Q4 2012.
- The average selling price was up 4.3% – $482,648 in January 2013 vs. $462,655 in January 2012.
- 15.8% more active listings in January 2013 than January 2012 – 14,231 vs. 12,290
- 10.7% new listings in January 2013 vs January 2012 – 10,624 vs 9,598
- The MLS® Home Price Index (HPI) Composite Benchmark price was up by 3.8% year-over-year
- 5.1% less total sales in condominiums in January 2013
- 0.7% more total sales in detached housing in January 2013
- Reduction in the Chartered Bank fixed mortgage rate to 3.65%
- 1.2% reduction in Condominium prices in January 2013
What the above statistics provide us is a mixed picture of the condominium market. We clearly see signs of improvement, with rates of decline slowing down with more sales in January 2013 vs Q4 2012. In addition, we see that the average selling price is definitely reflecting demand in housing.
With that said, there is another side to the story as well. As much as the real estate market seems to be adjusting itself, slowly but surely, the condominium market has definitely taken a hit. With a reduction in condominium prices, reduction in sales and an increase in inventory, it is showing that the condominium market still needs to bounce back.