August 2017 - A Plateau Before the Fall - The New Street Resale Real Estate Report for The Greater Toronto and Hamilton Region
The economic conditions remain very positive in the GTA as we move into the fall. In the real estate market, the average price of a home was up 3% throughout TREB's market area. The MLS® Home Price Index composite benchmark, which reflects typical home types throughout TREB's market area, was up by 14.3% from August 2016.
GTA & Hamilton Home Prices - Last 12 Months
In August 2017, within the Realtors Association of Hamilton-Burlington (RAHB) market area, the average price of a home was up 12% from the previous year and 2% from July 2017. These numbers along with other stats throughout this report indicate a positive outlook for the real estate market as we head into the last quarter of 2017. The number of new listings entered into TREB's MLS® System, at 11,523, decreased by 18.7% from the previous month and 6.7% year-over-year making it the lowest number of homes listed in the GTA in August since 2010. This has been an important factor we have been following in recent months as the initial jump in new listings throughout the spring months of this year had a significant impact on the market. The fact that the number of new listings are down yet again in August, and by almost 20%, indicates that homeowners are in no rush to sell anymore resulting in less new supply hitting the resale market. Throughout the Hamilton-Burlington area, new listings were also down by about 13% from the previous month. Meanwhile, the amount of sales was up by 7.4% in August from July 2017 in the GTA (based on TREB). Although, the market was still significantly slower from last year, the recent pickup in homes sold is another positive factor in the GTA housing market. This was also the first time in recent months, since the Fair Housing Plan was implemented, where prices have remained fairly consistent from the previous month. This plateau in average prices aligns with our predications from previous months.
GTA & Hamilton Homes Sales Stats – August 2017
The average price of a condo in the GTA was up 21.4% from last year based on TREB's market area. In the Hamilton-Burlington area, prices were up 14.6%. These annual double-digit increases continue to signify a strong demand in the condo market. Semi's and townhouses also drove up the average price with a 12.1% an 8.9% increase respectively from last year.
GTA Sales & Average Price by Home Type - August 2017
Hamilton & Burlington Sales & Average Price by Home Type - August 2017
The majority of neighbourhoods in the Hamilton regions have seen double-digit price increases from the previous year, with Dunnville, Waterdown, Glanbrook, Grimsby and the Hamilton Mountain leading the way. Waterdown was also one of the only areas that saw an increase in sales activity. Hamilton West saw the biggest jump of 15.1%, from July 2016 after strong sales in August.
Hamilton & Burlington Prices & Sales by Community - August 2017
In the GTA; Halton Hills, which includes Georgetown and Acton led the way with a 32.6% jump in prices from August 2016. Central and East Toronto prices were up by 8.3% and 13.1% respectively from the previous year. Meanwhile, the average prices in the York Region specifically cities such as Markham, Richmond Hill, Newmarket and especially Aurora are seeing prices below where they were last year. With such price fluctuations in cities throughout the region, it is clear that each market is operating independent of one another.
GTA Prices & Sales by Community - August 2017
The GTA and Hamilton resale real estate market as a whole is showing positive signals for the first time since the Fair Housing Plan was introduced in April of this year. This could lead us to the September Skyrocket Event everyone has been anticipating, where prices take off for the fall. The recent Bank of Canada overnight rate hike that happened on September 6th makes this highly unlikely and with such uncertainty around future mortgage rates, it's hard to predict the short-term future of GTA real estate. Stay tuned for next months report to see how things play out as we wrap up the summer.
Opinions are my own and should not be taken as advice. Data Compiled by New Street from TREB (Toronto Real Estate Board) and RAHB (Realtors Association of Hamilton-Burlington). In association with Right at Home Realty Inc., Brokerage, 5111 New Street, Burlington, ON L7L 1V2. The information here is deemed reliable but not guaranteed by New Street, TREB or RAHB. Not intended to solicit listed properties or buyers under agency agreements.
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