April 3, 2019 | Market Update
There were 7,187 home sales reported in the Greater Toronto Area (GTA) this March. The average price across housing types was $788,335. While March’s sales statistics have remained relatively flat year-over-year, the average sale price has risen.
Current conditions
On a year-over-year basis, March’s 2019 sales activity in the GTA has remained relatively steady reporting a total of 7,187 sales in 2019 compared to March 2018’s sales of 7,188. March’s new listings have declined more so than sales. March 2018 reflected a new listing count of 14,753 whereas March 2019 reports 13,996 new listings, resulting in a decline by 5.1 per cent year-over-year.
With regard to home prices, this March’s average was $788,335. That sum is up by 0.5 per cent from last March, when it sat at $784,514. This price growth was supported by an increase in market competition as the number of new listings on the market went down (by 5.1 per cent year-over-year).
OSFI stress test
Put simply, the OFSI’s stress test continues to impact the housing market, particularly for home Buyers. The Toronto Real Estate Board is still suggesting a review of the stress test provisions and mortgage lending guidelines. Supply and demand for listings in the GTA continue to remain a concern.
Although the recently announced Housing TO – 2020-2030 Action Plan is something TREB looks forward to supporting, the suggested increase to the Municipal Land Transfer Tax (MLTT) on higher priced properties could pose a problem.
Based on the recent City budget process, results prove that the Municipal Land Transfer Tax does not have the strength to fund municipal programs as a sustainable revenue source. In addition, these statistics also suggest the possibility for a ripple effect on the supply of homes throughout the continuance of house price increases.
Price growth on the horizon
The Real Estate Market conditions year-over-year have remained firm enough to encourage a support system for home price growth.
Although sales are noticeably lower than the record levels of 2016 and early 2017 the Real Estate market has shown a decline in the supply of listings available. In turn, many neighbourhoods throughout the GTA will likely see an increase of competition between home Buyers for available listings for sale. As a result, this could prove a stable level of support for home prices as the year progresses.
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