Toronto’s Real Estate Economy is not Slowing Down
There are some Canadian news outlets trying to promote the idea that there is a slowing real estate economy in Toronto. Let’s be clear, the market is not slowing it is just growing less fast. I predicted this would naturally occur as prices become less affordable, and investors decide to cash in on large earned profits. We are now seeing some additional sales inventory hit the market. Case in point, last year at this time (May 15) there were 2,100 condos for sale and 1,320 condos for lease in Central Toronto*. This May 15 there are 1,300 condos for sale and 1,126 condos for lease. One month ago there were 900 condos for sale and 1,420 for lease. Obviously, investors are taking some money off the table at these prices. Inventory is still very low.
* Defined by MLS as districts C01, 02, 03, 08, 09, 10, 11 (areas bounded by Eglinton, Lake Ontario, Dufferin, and the DVP)
Average days on market is now 9 days, down from 15 a year ago. Average price is up 24.5% from a year ago. Prices on416 condos are up 32.3% over a year ago. This April’s sales volume was 11,630 sales down from 12,016 last April (-3.2% year over year). This was mostly due to a lack of supply of affordable homes. While I hope price increases slow down, I still expect the average Toronto price to break $1.0M by Dec 31/18.