The Goldman Team

Market Update May 2017: Number of Active Listings Increase

05 June 2017
Cathy Goldman

Market Update May 2017: Number of Active Listings Increase

The number of properties available for sale (active listings), increased by 42.9% in May, year-over-year. It should be noted that the lowest level of active listings in the last 15 years was recorded in May 2016. Furthermore, the number of active listings in May 2017 remained below the average and peak figures over the previous 15 years. The increase was driven by more detached and semi-detached homes and townhomes being listing. The number of active listings in the condo market decreased, year-over-year.

Inventory levels still remain low, despite the increase in active listings. Less than two months of inventory remained on the market at the end of May. As a result, the market’s annual price growth rate remains strong as prices continued their upward trend in May compared to the same period in 2016. Not surprisingly, year-over-year price increases were greater in the condo market than for detached and semi-detached homes and townhomes. More listings in the market for the latter home types contributed to this.

As the chart below demonstrates, the average price of a detached home in May 2017 was $1,503,868, an increase of 17%, year-over-year. Semi-detached homes recorded an average price of $1,062,318, an increase of 27%, year-over year. Townhomes recorded an average price of $741,211, an increase of 18%, year-over-year. Condos recorded an average price of $564,808, an increase of 28%, year-over-year.

According to Jason Mercer, TREB’s Director of Market Analysis, “The actual, or normalized, effect of the Ontario Fair Housing Plan remains to be seen. In the past, some housing policy changes have initially led to an overreaction on the part of homeowners and buyers, which later balanced out. On the listings front, the increase in active listings suggests that homeowners, after a protracted delay, are starting to react to the strong price growth we’ve experienced over the past year by listing their home for sale to take advantage of these equity gains.”

Source: http://communications3.torontomls.net/statistics/mwatch/2017/05/mw1705.pdf