CREB Stats Summary:
Single Family: 1894
Single Family: 1785
Sold *Last 30 days
Single Family: 1230
Benchmark Price *Last 30 days
Single Family: $482,800
Last updated March 3, 2014
Low inventory of single family home listings continues
According to CREB statistics, the lack of inventory on the MLS market in the single family housing has forced sales to increase by 8.68 per cent year-over-year from 2013. Even with the low number of single family listings, sales still increased by 1.9 per cent over the previous year.
“Demand growth in the single family sector has been restricted by the availability of product,” says CREB® Chief Economist Ann-Marie Lurie. “New listings in this sector fell for the second consecutive month, causing further tightening in an already undersupplied market.”
Condominium sales also continue to grow with both condo apartment and townhouse sales increasing by 28 per cent compared to last year.
“Consumers who are in the market for single family homes priced below $300,000 do not have many options, and when product does become available, it typically does not stay on the market for long,” says CREB® President Bill Kirk. “However, nearly 54 per cent of the new condominium apartment listings this year are priced below $300,000, which is providing options for consumers looking for affordable product.”
Unlike the single family sector, the condominium market grew significantly in new listings. Year-to-date, condominium apartment and townhouse listings increased by a respective 17 and 4 per cent.
“As we move into the spring market we expect that listings will improve in all sectors,” says Kirk. “The rise in listings will help ease some of the tightness in the market, with price growth impacts varying by community and property type.”
In economic terms, when the demand goes up, so do prices as resale prices continue to rise due to the shortage in inventory.
The unadjusted single family benchmark price totalled $482,800 in February, a 1.28 per cent increase over the previous month and a 9.1 per cent increase over the previous year.
Meanwhile, condominium apartment price increases with a year-over-year gain of 12.4 per cent, however, overall benchmark prices in both the apartment and townhouse sector continue to remain below peak records set back in 2007.
“Resale market conditions have favoured the seller, and this has translated into price gains, which is strongest in the condominium sector,” says Lurie. “However, it is important to note that condominium prices have not yet risen above previous highs, whereas single family prices recovered last year."