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09 March 2018

Statistical trends offer valuable insights

When comparing year over year numbers for February 2018, one should take into account the never-before-seen prices and volumes experienced in Toronto’s February 2017 real estate market - perhaps not the most insightful interpretation method. The more valuable insights are found in an analysis of how the market is trending. Setting aside the anomaly that February 2017 was, compared to February 2016, February 2018’s average price represents an annualized increase above the inflation rate for the past two years. 6% annualized growth over two years is statistically a strong market. Prices and sales volume in February were up from January 2018 and December 2017 and the strongest increase we’ve seen since June 2017 when the market began to digest government introduced cooling measures.  Despite the increase in active listings, an absorption rate calculation indicates there is 2.8 months of inventory. By industry standards, this is considered a fast, seller’s market, with the likelihood to push prices up as we head into the spring market.