Toronto real estate listings were up 172% in December, as inventory continues to grow and sales continue to drop according to the Toronto Real Estate Board. Toronto’s housing market has dropped over the past number of months as the government has tried to restrain demand that had driven prices to record highs with stricter mortgage guidelines and regulations. Therefore, resulting in a large supply of new listings for the remaining months of 2017. In 2018, there is expected to be a large number of projects to be completed and majority of these projects have already been pre-sold. There is a high chance that many of these units will be listed on the market and possibly drive more than expected inventory in 2018.
Having said that, Orangeville is having an opposite effect on the number of listings available in the area. According to the latest figures from Zolo, Orangeville has the highest turnover of homes out of 23 greater Toronto markets. Therefore, Orangeville properties are not staying on the market as long as neighboring communities. With Orangeville’s average sold price of $483,000 versus Toronto’s average sold price of $738,000 in November and December respectively, Orangeville is still an affordable alternative for first time home buyers and for those that want to purchase an investment property and charge comparable Toronto rent prices. If you compare, the December 2017 – Year-Over-Year Percent Change chart below, Orangeville house prices have increased over 13% and likely continue to increase this year, while the prices in Toronto are predicting to continue to decrease (average Toronto sale price down 20% from April 2017’s peak) as the new stress test will affect the more expensive properties while the least expensive properties are expected to rise in value.
For more information and to review your financing needs, Contact Geoff Del Grande.