Toronto Real Estate in a Massive Flood of Inventory? NOT!
August Market stats are in and here is an executive summary of the data.
*sales DOWN by 35% compared to last year at this time. Does that a flood make?
*New listings are DOWN by 7% vs last year (lowest since August 2010!) Does THAT a flood make?
*Average sale prices are UP by 3% year over year…tho’ nicely down from our high water mark in March.
*Total listings are UP by a whopping 65% versus last August…so THAT must spell a flood…right?? Wrong.
There are STILL only 1.4 months of inventory in the GTA and so that means if nothing new came on the market, it would only take a little more than a month to sell everything…and many districts have only 1.2 months or less. So if you see headlines about a “BALANCED MARKET”….don’t believe it…yet!
*Sales in August, which is always our lowest and slowest month, took 25 days on average to transpire versus 21 days last August.
*Even CONDO sales were down by 25%; however average sale prices soared by 21%.
*Sales to list ratios averaged out at 98% with some districts at 99%to 100% of the asking price. (properties were PRICED more realistically as well)
Looking forward to seeing what the month of September brings us…a better test of how the market really is feeling after the “Fair Housing Act”, new mortgage rules, 15% tax on foreign buyers, interest rates going up and the almost demise of Home Trust, one of our biggest B lenders in the country. (PHEW!)
If you (or someone you know), are looking for a Realtor who cares MORE about focusing on you, your concerns, goals and the successful purchase or sale of YOUR unique home, than they care about their volume of transactions and awards, please let me know the best way for me to connect. I would love to offer my highly personal service. Contrary to that old expression, not only IS this business, but it IS personal! And, please, I encourage you to ask me any questions you may have about this post. I value your input and appreciate the time you took to read it.