Is Toronto a buyer’s or seller’s market?

Yesterday the sales figures for April came out, showing month-over-month price gains for most market segments in the city of Toronto. Freehold townhomes faired the best with an astounding 7.6% bump in appreciation month-over-month. Detached homes, a market segment that was hardest hit by the non-resident buyers tax, appreciated 4.7%. Condos also continued their rise as the average price on a condo in the 416 topped $600,000 for the first time ever! 

It makes sense that freehold townhome properties (row houses) were the best performing segment in April. Condo appreciation has closed the gap on townhomes and new mortgage restrictions combined with increasing interest rates have pushed first time buyers into the most affordable segments. I expect the detached segment to continue to appreciate as real estate speculation picks back up. 

On the freehold side, we finally saw a good week for new listings after after the horrendous weather in April. While the GTA remains a balanced market, many of the neighbourhoods downtown have been extremely competitive. Currently, the 416 as a whole is on the brink of being back in a sellers’ market.   

What do the numbers say: The GTA remains in balanced territory with a sales-to-new-listings ratio of 47 per cent. However, conditions in the 416 hinge on sellers’ market territory, with a ratio of 58.3 per cent. (This ratio is calculated by dividing the number of sales by the number of new listings over a certain time period, in a specific region. According to the Canadian Real Estate Association, a ratio between 40 – 60 per cent indicates a balanced market, with below and above that threshold revealing buyers’ and sellers’ conditions, respectively.)

York region, which has borne the greatest softening following the non-resident buyers tax, remains in buyers’ territory at 32 per cent, followed by Simcoe, at 34 per cent. Peel, Durham, and Halton all remain in balanced territory with ratios of 52, 48, and 47 per cents.”

-Nick, May 4/2018






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