Spring 2018 GTA Market Update
Sales down 44%... This journalism is ridiculous…
So the same bad journalism and misinterpreted stats that had the biggest hand in the lull last year continues. Yes, sales are down 44% from March 2017 but that is completely irrelevant to the market we’re in today. It’s like comparing Gretzky’s 200+ points a season in the 90’s to todays NHL where the best players are lucky to hit 100. They cannot be compared. There were such massive changes in the market since April 2017 that it’s a whole new ball game now. If you watch month-over-month, you’ll see an increase in sales and sale prices, but that’s not exciting news so it’s not being reported. I haven’t heard one news source actually report that sales have increased as we enter spring. But everyone knows about the 44% drop!
The thing that bothers me about the spin the media puts on this is that unless you go out of your way to look up the numbers, you’ll be misled into thinking that since sales are down 44%, prices are trending downwards. This can cause buyers to wait a little bit longer for lower prices when in reality, sale prices are actually increasing. Some markets are getting back into offer holding and multiple offer scenarios. I’m not saying this is across the board, some homes take considerably longer to sell but some are selling right away. It all depends on the area, the house and of course, pricing. If you’re planning on waiting for prices to drop before you buy, you could be missing the boat.
The number of new listings to enter the system for March is down 3% from the March average for the previous 10 years. The insane increase we had in the end of April and May 2017, flooded the supply while demand dropped. If the market trend and conditions continue to grow at the pace we have now, we should expect a more stable real estate market in 2018.
So that's it for a quick snapshot of the GTA market trends. If you have any questions about any specific area housing stats or are looking to buy or sell, I'm here to help with all of your real estate needs!