Toronto detached real estate is seeing demand decline, almost as quickly as it rose last year. Toronto Real Estate Board (TREB) numbers for February show prices are falling. The price movement is expected, as higher inventory levels meet declining sales. Benchmark Prices Vary From A 9% Gain, To Declines Over 10% The prices of a […]
Toronto detached real estate is seeing demand decline, almost as quickly as it rose last year. Toronto Real Estate Board (TREB) numbers for February show prices are falling. The price movement is expected, as higher inventory levels meet declining sales.
Benchmark Prices Vary From A 9% Gain, To Declines Over 10%
The prices of a detached home is lower across Toronto. The benchmark price, a.k.a. a typical detached home, fell to $915,300 across TREB in February, a 2.06% decline from last year. Detached homes in the City of Toronto saw the benchmark fall to $1,090,000, a 1.51% decline from last year. Prices in the suburbs are most definitely falling faster than those in the city.
Speaking of prices in the city, the benchmark price across the City of Toronto is showing huge swings. TREB region C01, which is central downtown Toronto, is seeing the highest increase in prices. The benchmark detached price reached $1,075,200 in that area, a 9.49% increase from last year. On the other side of that read, is TREB region E05, the Steeles-L’Amoreaux region in the north-east, where prices fell the most. The benchmark detached reached $888,500 in that ‘hood, a 10.31% decline compared to last year. Swings are likely a sign of price discovery, as the market attempts to figure out where prices should be.
For those skeptical of the benchmark, there’s the median price – a more commonly used indicator across the world. The median sale price of a detached fell to $841,000 across TREB, a 13.74% decline from last year. In the City of Toronto, the median fell to $1,000,500, an even more steep 20.15% decline from last year. This tells us prices are falling, there’s less sales of higher end properties, or both.
The average sale price also saw huge declines across the board. All TREB regions saw an average sale price of $1,000,736, a 17.2% decline from the year before. Breaking that down, the City of Toronto had an average sale price of 1,282,240, an 18.6% decline from last year. In the suburbs, a.k.a. the 905, the average sale price fell to 911,065, a 17.8% decline from last year. Remember, average sale prices aren’t helpful for determining what you’ll pay. They’re helpful for determining the flow of dollars. Right now, we’re seeing that decline to new multi-month lows.
Detached Sales Are Down Over 41%
Detached sales are declining across Greater Toronto. TREB reported 2,169 detached sales in February, a 41.71% decline from last year. Breaking that down, the City of Toronto saw 524 of those sales, a decline of 33.6% from last year. The suburbs saw sales drop to 1,645 detached units, a 43.3% decline from last year. Sales are declining across Greater Toronto, but are falling faster in the ‘burbs.
The decline in sales is being met with a rise in inventory. TREB reported 5,556 new detached listings, a rise of 15.15% from last year. The City of Toronto saw 1,1134 new listings, a modest 2.16% increase from last year. Despite the mild increase, some serious inventory is building up.
The increase in new listings, combined with the decline sales, led to a rise in active listings, which are the total available inventory. TREB reported 7,852 active detached listings, a 199.24% increase from last year. The City of Toronto saw 1,453 active detached listings, a 121% increase from last year. You’ll probably hear your agent argue “but last year was a record low,” it was expected to rise. This number is still 48% higher than the median number of active detached listings, going back to 2015.
Next month will be an interesting month for sales. Most mortgages approved before B-20 stress tests became mandatory, will have expired. Most buyers at the Big Six, will be subject to smaller mortgages than just 3 months ago. This will have a greater impact on more expensive segments of housing, like detached units.