The December housing stats show the continued flat-lining of the real estate market in the GTA.
Home prices in the GTA averaged $735,021 in December, up just 0.7% from $730,124 in December, 2016. Sales fell by 7% which is a lower percentage than previous months.
For detached homes, sales fell by 14% and prices were down 2.5%. This category of housing is underperforming compared to condos and townhomes. Condos sales are up by 14%. Much of the activity has been driven by buyers trying to get into the market before mortgage rules set in. There were even some bidding wars in some parts of Toronto.
Buyers who close earlier than Dec 31st will not have to reapply for a mortgage under the new federal rules. Now, mortgages will be less affordable and this may affect the market, even for condos.
Overall, housing inventory is up 172.4% year over year. That means many more homes are on the market compared to last year.
So for those already in the real estate market, the lower demand for detached homes and larger supply, might make it a good time to buy. But since prices are still so high for many buyers, there good reason to expect a continued boom in condo construction and demand.