The GTA housing market saw sales drop last month, as the market adjusted to a new mortgage stress test. But according to a new report, things are heating up in February.
The GTA condo market saw a massive 92 per cent spike in sales in the first two weeks of February, while the detached market was up a more moderate 34 per cent, according to data released today by Zoocasa.
“It’s quite the positive month-over-month picture,” Zoocasa managing editor Penelope Graham tells BuzzBuzzNews. “There were a combination of factors that cooled the market in January — absorption of the new mortgage rules, for one — but buyers are sellers seem to be returning to the market.”
While sales are down in year-over-year terms — sales of condos and detached homes are down 33 per cent and 41 per cent, respectively — Graham cautions against comparing the current market to where it was this time last year.
“What we’re seeing now is a more balanced market, after the record breaking conditions that we were seeing over the last two years,” she says. “Buyers should celebrate this more balanced market.
That balance is reflected in the first two week of February’s sales-to-new-listings ratio. A ratio of between 40 and 60 per cent is considered balanced, with readings below and above indicating buyers and sellers markets, respectively.
At 40 per cent, the GTA condo market is just barely in balanced territory, while at 30 per cent the detached home market is in buyers market territory.
Since Ontario home sales were down 23.3 per cent month-over-month in January, there’s certainly been a changing of the tides in the first two weeks of February.
While Graham thinks it’s too soon to say where the market might be headed for the rest of 2018, she says it’s clear that things are now off to what she considers a “booming start.”
“Things have thawed considerably since January, and I think that that will likely continue, at least for the next few weeks, and possibly into March,” she says.