Toronto Real Estate Market Watch 09/18
This year’s summer market has been a whirlwind of progress, increases, and ultimately, stabilization; a welcome development after a turbulent year resulting from policy change. August is now the third month in a row of year-over-year sales growth for the region, with July up 18.6% from a year earlier, and June up 2.4%. What’s most exciting to us is the city showing signs of moderation, alongside the recovery of the suburbs in the GTA!
In numbers, the price of a typical home moved a bit lower from last month, but it is still higher than last year. The average selling price rose 4.7% to $765,270, which is up from $730,969 in August 2017. The average Toronto-area resale condo price also rose 6.4% to $541,106. The number of sales for condos, however, remained flat overall, increasing 0.7% year over year in August.
TREB reported 6,839 sales in August, a substantial increase of 7.85% from 2017. The City of Toronto – the core ‘416’ area – represented 2,441 of those sales, down 1.57% from 2017, which is not a “bad” thing! Rather, the 8.6% increase in year-over-year sales for August shows the Toronto market to be firming into a relatively stable investment market. A recent study by real estate investment services company Marcus & Millichap pointed at elevated prices as the main motivator for the continuous strength of Toronto’s multi-family housing market, and of apartments in particular.
Here at The Richards Group, we often discuss the importance of housing inventory and the effect it has. An increase in inventory means more selection towards fixed situations where flexibility and compromises might not be an option due to: budget, family size, transportation, etc. We’ve reported on the lack of inventory these past few months, but we’re excited to announce the number of new listings increased across the board! TREB reported 12,166 new listings in August for the 905 area, up 5.58% compared to last year. In the core, it was reported there were 3,752 new listings, up 4.13% from last year!
However, Jason Mercer, TREB’s director of market analysis, said the annual rate of sales growth outpaced the annual rate of new listings growth, creating a market that was “tighter” than the year before.
Do you want to learn more about the market and where we predict things are heading this fall? Reach out to us at firstname.lastname@example.org to start a conversation!
2018 Report – http://communications3.torontomls.net/statistics/mwatch/2018/08/mw1808.pdf
2017 Report – http://communications3.torontomls.net/statistics/mwatch/2017/08/mw1708.pdf