Title: Resale of the January housing market
By: Tim Syrianos, President of TREB
Greater Toronto Area REALTORS® reported 4,019 residential transactions through the TREB MLS® system in 2018. This result decreased by 22 percent compared to a record number of 5,155 sales reported in January 2017.
The number of new entries in the TREB MLS® system was 8,585 – an increase of 17.4% compared to 7,314 new listings which were introduced in January 2017. However, it is important to note that the level of new offers was the second lowest for the month of January of the last 10 years.
TREB has announced its outlook for 2018 on 30 January. The outlook indicated a slower start to 2018, especially in comparison with the record rate set a year ago. As we continue the year, we expect the pace of house sales to rise as the psychological impact of the Fair Housing Plan declines and homebuyers get their foot on the ground compared to the new OSFI mandatory stress test for mortgage approvals through federally regulated
The MLS® Home Price Index Composite Benchmark increased by 5.2 percent year-on-year. This year-on-year growth was driven by the apartment complex market segment, with double-digit annual growth compared to the single-family housing segment, with prices virtually flat compared with last year. The overall average sales price fell by 4.1 percent on an annual basis to $ 736,783. This decrease was weighted in the direction of the free-standing segment of the market. In the city of Toronto the average sales price was higher than that for detached houses.
I asked TREB's market analysis director to offer perspective, and this is what he had to say.
It is not surprising that house prices in some market segments in January were equal to those of last year. Last year we were in the middle of a peak of house prices last year, driven by exceptionally low stock on the market. It is likely that market conditions in the second half of 2018 will support a return to positive price growth for many home types. The condominium apartment segment will be the engine for this price growth, "said Jason Mercer, Director of Market Analysis at TREB. 19659005] With the meeting of the Executive Committee of the city of Toronto today to make recommendations on the 2018 budget of the city, council members can notice the difference between the January and January real estate market, given the city's declining reliance on municipal relocation tax.The amount of revenue the city generates from this tax goes up and down with the real estate market. should be a wake-up call for the city council, paying attention to the city council's constant warnings that he relies too heavily on this tax The transfer tax is not a good way to finance municipal services
The revenue generated by the municipal transfer tax is based on the number of real estate transactions and the w earth of those transactions. When the MLTT was first implemented in 2008, it constituted less than 2% of the city's operating budget. Today it is 7%, an increase of 250%.
For more information about the Toronto property market and a look ahead to 2018, read the full Market Annual Review report and Outlook available here: http: // bit. ly / 2EpcAms