July 2018 stats are in and yes, WE DID IT AGAIN! Sales were up, prices too unfortunately for buyers, but for sellers? well, “you’re richer than you think”!!
Here are the facts:
- July 2018 sales were up by a whopping 19% compared to July 2017
- July 2018 Average sale prices were also up by 5%
- New listings were down by 2% as inventory continues to erode but total listings rose by 5% thanks to the condo supply, which is also disappearing FYI
- The July 2018 market IS slower than last year…listings staying on 4 days longer, on average….25 days vs 21 days
- Condo sales in the city were up by 6% and average sale prices soared by 9% due to heavy competition from hungry buyers.
When we drill down and look closer at Toronto sales by housing type, we find:
- Detached homes cost on average $1,350,000 and in the Central core WOW….$2,308,000 (sellers are getting 98% of their asking price in about 24 days.
- Semi’s cost on average $935K and in Central (IF YOU CAN FIND ONE) $1ML and change. Sellers are getting 102% of their asking price in 15 days.
- Condos in the city average about $583K and in CO1 (where most of them are located) they cost $653K and sellers are getting WHAT THEY ASK FOR in 19 days (and that is WITH the Status condition in place…they would go faster if buyers weren’t waiting for the lawyers to look at the reserve fund etc).
SUPPLY is becoming increasingly problematic in Toronto. Inventory is lower this year than last…not so much in the 905 districts. Months of inventory in the city average 1.9 months, whereas is areas like King and Richmond Hill…they have 8.5 and 5.3 months respectively. We are concerned as to what this will mean for the fall market and of course the city will be concerned too…since they torture buyers with an egregious EXTRA LAND TRANSFER TAX and that income stream will not fill the coffers as expected when sales recede due to no municipal or provincial initiatives in place to encourage more construction.
Did you know that Toronto pays the highest % Land Transfer tax in the country. On average 3.1% of the purchase price. Vancouver is next at 1.8% and Windsor is last at .9%. And remember, a buyer cannot finance these taxes…OR the Foreign Buyers Tax…these funds have to come straight out of a buyer’s pocket.
The high end market (above $2ML) is not “behaving”. Buyers are clearly taking their time before bidding and sellers are having to be “talked off the ledge” in terms of their asking prices. Buyers have gone through 3 mortgage hikes AND a stress test for even conventional mortgages and so they are “looking before they leap” and negotiating hard on these luxury properties. The same is true in cottage country and resort areas especially, as these properties are discretionary…to be sure.
August will end up like most summer months (though ahead of last August) and we look cautiously ahead at the Fall market in September and hope against hope that inventory will improve.
If you (or someone you know), are looking for a Realtor who cares MORE about focusing on 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.