It should come as no surprise that new listings, sales and active listings dropped o substantially in December. It is part of the usual winter market blip that we experience each year around this time. Included in the slowdown in activity are increases in the number of days on the market and the average selling price versus the list price. But December is an oddity of the Toronto market which has experienced tremendous suc- cess in 2016. Against all odds, such as a tightening of lending requirements, the Toronto Real Estate Board recorded 12,000 more sales than 2015, a nearly 12% increase in total homes sold. Remarkably this was achieved at the same time as recording a increase of over $100k on the average price of a home. According to TREB, the condo market was a major factor in sales volume growth and our own numbers bear witness to the demand in this sector.
Despite a record year for property sales, supply of listings remained extremely tight. In fact, active listings by the end of December were at the lowest levels since 2002. This December there was more buyer activity in the 905 where 2662 freehold semis, detached and town homes sold in the 905 compared to just 836 in the 416. The condo market is still king in the downtown core with sales outnumbering the 905 by better than 3 to 1. New construction sales ended the year with new records. While inventory levels stayed consistent, the average price for a highrise condo is closing in at $500k while a lowrise property is just a shade lower than $1m. This is likely to continue in 2017 as we apply the old adage…they aren’t making any more land!