Sanity has returned to Toronto’s housing market…though we do have a “Tale of Two Cities” at play between the city and the 905 regions around us. More on that below…..
As we predicted, the market has plateaued and business is “back to normal”! It took a couple of minor rate hikes, some new pre-approval regulations, some added financial “stress tests” and the psychological impact of the Fair Housing Act…which did not address supply and demand, per se, but DID cause buyers to “pause” before jumping into an hysterical buying binge. All good news for buyers, sellers and Realtors.
Here are the results for the month of September:
*sales down by 35% compared to last year at this time
*New Listings UP by 9% and total inventory UP BY A WHOPPING 69% (a LOT of that is condo supply, as we are still dismally low in housing stock in the city, at least.
*Average sales prices up by 2.6% to $775.6K. However, the REAL increase, (called “benchmark price) increase is UP BY 12%. This means the house you bought last year would cost you 12% more this year.
*the disparity between average sale price increasing by 2.6% and 12% is the fact that there are far fewer “expensive detached” homes (ie: $2ML+) in the mix of sales this year. Last year there were 279 such homes sold and this September, a mere 188.
*CONDOS on the other hand are another matter.
*Although sales were DOWN in the city by 23% compared to l/y, average prices SOARED BY 24%!! FYI 73% of all condo sales took place in the downtown core (C01).
*Months of Inventory are UP from 1.2months to 1.4 months this year. BUT there are pockets in the city who have almost 3 months. And guess what the reason is? These districts have the highest average sale prices….like C12….where most houses are in the luxury price points of $2ML++++
*NOTE: 40% OF SALES TOOK PLACE IN THE CITY WHERE THERE WERE ONLY 30% OF AVAILABLE LISTINGS….so (re Tale of 2 Cities) in Toronto there will continue to be upward pressure on prices and multiple offers. But in York, Durham, and other 905 Regions, there is more supply and less demand so prices will continue to moderate there. ONLY 19% OF DETACHED LISTINGS were in the city!!
*NOTE ALSO: Areas in The Beach, Riverdale and in East York are still acting as if nothing has changed since the crazy highs in April! On average, houses are selling in 9 to 11 days at 104% of the asking price!!
BOTTOM LINE: If you want accurate assessments of what your selling or purchase price should be, your Realtor has to be very diligent about peeling back the layers of this statistical onion! Averages won’t give you the information you need to make an informed Real Estate decision. So choose your Realtor wisely!!
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.