The single-family market continues to tighten, with months of supply dropping below three months.  Sales growth continues to outpace new-listings activity, placing downward pressure on inventories.  As the market tightens, single-family homes are selling quicker, and there has been some upward pressure on pricing.  The MLS® Home Price Index for the month of April recorded a year-over-year price increase of 5.5 per cent for a total benchmark price of $449,500.

“While the balance between demand and supply in the single-family market has shifted towards sellers’ territory, there are several components that make today’s market different from five years ago,” says Bob Jablonski, president of CREB®.  “The main difference is there is still significant supply for consumers in surrounding towns and the condominium market in the city, and the new-home builders do have the ability to absorb some of the excess demand,” Jablonski adds.

After the first four months of the year, the condominium apartment sales totaled 1,133, a 2.2 per cent increase over the same period last year.  Tighter supply in the single-family market has translated to improved demand for condominium apartments, and consumers active in this market have a sufficient amount of supply and new listings to choose from. 

New condominium apartment listings for the month of April rose by 5.9 per cent compared to last year, and remain at similar levels on a year-to-date basis.  As the gap between inventories and sales narrows, the months of supply continues to trend toward levels that are more consistent with a balanced market.

While the condominium apartment market moved into more balanced territory, index prices remain relatively unchanged.  The condominium townhouse market is trending in a similar fashion to the single family market, and recorded a year-over-year index price increase of 2.7 per cent.  Overall for the month of April, the condominium townhouse and apartment markets recorded a benchmark price of 294,500 and 248,300, respectively.

“While sales activity and the level of new listings continue to remain below long-term trends, the spring market is definitely on the rise over the previous year,” says Jablonski.  “As confidence in the local housing market continues to build, we anticipate a rise in demand, followed by improved listings from those waiting to see some price appreciation prior to listing their home.”

Source:  CREB® www.creb.com