January sees strong sales fueled by boost in new listings
February 1, 2024
Sales Growth | January sales saw a significant increase to 1,650 units, surpassing last year's levels and long-term trends.
New Listings Impact | The growth in sales was attributed to a rise in new listings, totaling 2,137 units. Notably, the largest gains occurred for homes priced above $700,000.
Low Inventory Situation | Despite the rise in new listings, the city's housing inventory remains low, with 2,150 units, nearly 49% below the long-term average for January, contributing to supply challenges.
Market Tightness and Price Growth | The market remains tight with a 1.3 months supply in January, leading to upward pressure on home prices.
Housing Market Facts
DETACHED | A boost in new listings helped support stronger sales this month. However, with a sales-to-new-listings ratio of 77 per cent, there was minimal change in the low inventory situation reported in the detached sector. New listings rose for all homes priced above $500,000, but the largest gains occurred in the over $700,000 market segment. Low inventory levels compared to sales prevented any improvement in the months of supply, which at 1.4 months was lower than levels reported last month and last January.
The exceptionally tight market conditions continued to drive further price growth. In January, the unadjusted detached price reached $702,200, nearly one per cent higher than last month and nearly 13 per cent higher than prices reported last year. Year-over-year price gains ranged from a low of 10 per cent in the City Centre and South East districts to a 27 per cent gain in the East district of the city.
SEMI-DETACHED | With 223 new listings and 131 sales, the sales-to-new listings ratio fell to 59 per cent, the lowest level reported since 2020 and significantly improved over the 82 per cent average reported in 2023. The sudden shift did cause inventories to improve over the last month, but they remain well below long-term trends.
The unadjusted benchmark price in January was $625,000, slightly lower than last month but over 11 per cent higher than last January. The monthly decline was driven mainly by adjustments in the higher-priced districts of the West and City Centre.