June 2017 stats will certainly cause a ruckus in the press, now that prices are sliding. But remember, they went crazy when the average sale price in April was $949K and screamed about the lack of affordability (and we tended to worry about that too by the way!). We, who live and breathe this market and its stats believe that prices are likely now in “plateau mode”. AND, June, July and August are summer months where the NORM is for prices and sales to retract…particularly at the high end, as people turn to cottaging and travel and not to shopping for or listing their luxury homes in the city.
June 2017 average sales price came in at $794K, a great relief and retraction from those pesky peaks a few months ago, but we anticipate the press will take a “the sky is falling” approach to that too!
Remember that the average sale price is determined by the total dollar volume transacted for the month divided by the number of transactions and in the month of June 2017, there were only 264 properties priced at $2ML or more sold compared to 632 in March and 616 in April. So of course, if the bulk of sales are now being done with condos and lower priced housing units, then your average sale prices will decline. It does not mean your home has lost 30% of its value. It means, rather, that when you DO list your property Mr. and Mrs. Seller, you should NOT expect Lottery prices for your home, but rather, fair market value …just like in the “old days”.
Some additional facts:
*Average sale prices rose 6.3% compared to last year.
*New Listings rose by 16% compared to June 2016.
*Active listings are up 60% compared to last June so buyers have more time and more choice…which also brings prices further into line. For now, the days of “unbridled exuberance” for buying is off the table.
*Days on market are 15 days, the same as our hottest year last year.
*Sales in Toronto were driven by CONDO sales, as there is little else to sell in the city.
*Until and unless the BOC raises rates, and mortgage rates rise, the fundamentals of the market are still in place and we anticipate a peaceful summer and a healthy fall season to follow. So yes, the market is still “just ducky” thanks!
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.