Buy condo scarborough . The housing market is hot again. No one robbed this area where Chinese people gathered in Toronto. Over the past year, the average price of second-hand housing in most areas has maintained a relatively modest year-on-year increase.
However, judging from the data provided by the housing inventory (months of inventory) and the ratio of sales to new listings (sales-to-new-listings ratio), the property market in more than 30 cities and towns in most areas is more inclined to the seller market. Only King City in York can be called a buyer’s paradise.
Michael Collins, chairman of the Toronto Real Estate Bureau, pointed out in the October report on the second-hand housing market in most regions that the strong regional economy has contributed to population growth. All new families not only have a rigid demand for housing, but also aim to buy houses. But the problem is that the opening of second-hand homes is declining, and a shortage of supply has strained the market and driven house prices to rise. Sales of second-hand homes rose 14 per cent year-on-year in October, compared with a 9.6 per cent year-on-year decline in new sales, according to the report.
However, compared with the increase in property prices at the peak of the property market in 2017, the increase in property prices in recent years has been maintained at a moderate level. I still remember that when the average price of second-hand housing more than two years ago, there was an astonishing year-on-year increase of more than ten or even more than 20 percent. In October, the average price of all housing categories in most areas was 852000 yuan, an increase of 5.5 per cent year-on-year. Jason Mercer, chief market analyst at the Toronto Real Estate Bureau, believes that even if the current increase in house prices is moderate, if the pace of sales growth continues to exceed the pace of the new listing, there will be a stronger increase in house prices in the near future.
As the above two experts said, one of the reasons for the rise in house prices is the shortage of second-hand housing on the market, resulting in an imbalance between supply and demand. At present, the inventory of real estate (Months of Inventory) in most areas can be fully digested by buyers in only 2.2 months.
Generally speaking, the level of real estate inventory is one of the indicators to measure whether it belongs to the buyer’s market or the seller’s market. To put it simply, in the absence of new supply, how many months will it take for existing listed properties to sell out. The basic interpretation is that if the inventory is less than 4 months, it will be regarded as the seller’s market, and if it is higher than 6 months, it will be the buyer’s market, which is between 4 and 6 months, which is a healthy and balanced market.
The entire Greater Toronto area, which includes more than 30 towns, including Toronto, York, Durham, Peel Region and Halton Region, has the lowest inventory of second-hand buildings at 1.5 months, with Orangeville in East Toronto, Dufferin County and Milton in Holden. Cities and towns with inventories of less than two months are also Binton and Missouri in Pier District, West Toronto (1.7), Ajax in Durham District (1.6) and Whitby (1.9).
In the region as a whole, Pierre District and Toronto are the most serious, with an average inventory of only 1.7 months and the latter an average of 1.8 months. The average listing days (days on market) of the two are also the least, with an average of 21 days in Pierre District and 19 days in Toronto, of which the average listing day in the east of Toronto is the least in most areas. if the property stays on the market on average on 17 days, it will be absorbed by buyers.
Of the more than 30 towns, only 7 have inventory in a balanced market and are concentrated in York. In addition to Brock and Scugog in Durham, Innisfil in Simcoe County, East Gwillimbury, Georgina, Richmond Hill and Whitchurch-Stouffville in York, second-hand housing stocks are all 4 to 4.4 months old.
If a detailed analysis of different parts of Toronto, as of the end of October, the average inventory of real estate in 35 regions is only 1.8 months. Among them, the shortage of second-hand properties is more serious in the east of the city, especially in the areas of E01, E02 and E09, where the inventory is only 0.9, 1.1 and 1.2 months respectively, and the average listing date is only 9 to 14 days.
The largest inventory in Toronto is in C12, which includes Bridle Path, Sunnybrook, York Mills, St. Andrew, Windfields and other residential areas, with inventory as high as 8 months. However, the inventory of second-hand homes in King City in York is the highest in most of the region, for as long as nine months.
Another important indicator that can also be used to determine whether a place belongs to a buyer’s market, a seller’s market or a balanced market is the sales-to-new listing ratio (sales-to-new-listings ratio).
According to the explanation of the Canadian Real Estate Association (Canadian Real Estate Association), the ratio of sales to new listings refers to the number of properties listed for sale successfully within a specified period of time. If the ratio is between 40% and 60%, it belongs to a balanced market, where buyers and sellers are evenly matched; less than 40% is a buyer’s market, which means that buyers have more choices and higher bargaining power; and if the ratio is higher than 60%, it is a seller’s market, that is, buyers’ demand is strong. It is easy to compete or the transaction price is higher than the bid.
As can be seen from the Toronto Real Estate Bureau’s October second-hand housing market report, the sales-to-new listing ratio of most cities and towns is within the definition of a balanced market of 40% to 60%. Although all of the 8 cities in Durham District are balanced markets, the cities of Aji and Os are among them.