December 2018 GTA Real Estate Market Report Summary
We’re now in a new year, but let’s take a quick look back at December 2018 to see how GTA home sales held up. TREB recently released their real estate market report for Dec. 2018. The number of home sales in December was down year-over-year, but the average price raised some.
TREB President, Garry Bhaura said “Higher borrowing costs coupled with the new mortgage stress test certainly prompted some households to temporarily move to the sidelines to reassess their housing options. With this said, it is important to note that market conditions were improved in the second half of the year, both from a sales and pricing standpoint.”
Here is how the Greater Toronto Area’s real estate market held up in December compared to November 2018.
The number of home sales across the GTA and in Richmond Hill fell quite a bit from November to December. There were 6,251 sales in the GTA in November, but only 3,781 in December. While this drop may seem dramatic it is not unusual for the month. The cold weather and holiday season often causes people to hold off on buying until the New Year. There was some good news for sellers in Richmond Hill in December. The average sale priced increased from November, rising from $995,613 to $1,006,353.
Price per Home Type
Detached homes were down in both number of sales and price across the GTA in December 2018, including in Richmond Hill. While there were over a thousand fewer sales across the GTA the average price did not drop too much. A lower vacancy rate for detached homes also explains the slow sales.
On average, semi-detached homes also dropped in the GTA in December. In November, there were 621 semi-detached units sold, 10 of them in Richmond Hill. Last month there were only 342 semi-detached homes sold with only 4 in Richmond Hill. However, in Richmond Hill, the average price of units increased from $738, 580 to $830,375.
Townhomes on average in the GTA also saw a drop in price and sales. However, like semi-detached units, townhomes saw a price increase in the Richmond Hill area. Although there were only 6 units sold in December, down from 9 in November, the average price increased from $614,389 to $662,833.
Although condo sales in the GTA have been driving Toronto and Canadian real estate this year, they declined in December 2018. The number of condos sold across the GTA decreased a bit in December from November, going from 1, 891 sold to 1,185. The average price across the GTA, including Richmond Hill, also dropped. In December condos sold for an average price of $554,487, down from $556,723 in November 2018.
While these drops might seem alarming, Toronto’s real estate market actually regained strength and stability in the latter half of 2018. The slower marker in December also reflects normal buying and selling behavior. The end of the year and holiday seasons often slows real estate sales, but with the New Year, things are expected to pick up.
Contact us if you need help buying or selling your next Richmond Hill home!