Toronto Real Estate | Market Update | September
The Toronto Real Estate market is a sprawling and really competitive and as an agent, you must have a good grasp on the niche, what it is and also be able to do the math. Sellers and buyers need this information too as it is key to selling and buying the season.
In this review, we will be going over the final numbers for the month of August 2018 as we head into September and will be using information as per the YouTube channel https://youtu.be/gUHpm7TyJyY. We will be doing a few comparisons including the year-over-year comparison as well as the month-over-month comparison and then go into a more detailed discussion of how the different home types are doing in the market right now so we can gently ease you into the market.
A break-down of August’s numbers
Toronto Real Estate Board (TREB) has released August's statistics. Sales for houses was at 6,839. The average pricing for each unit stands at 765,000 with active listings standing at a little over 17,664 and new listings have just reached over 12,000. The market has jumped up and is still very much in favor for sellers which means the buyers will come across some very competitive price listings especially in Toronto for the semi-detached, there’s some steep competition going on.
Year over year comparison
There’s a bit of good news here when it comes to looking and comparing last years numbers to this years with all positive numbers.
Last year we were in the market corrections phase so the pricing fluctuated a bit going to peak then dropping so when compared to this year the numbers are definitely higher.
Sales were up by 8.5% from August last year which was at 6,305. The average sale price is up 4.7% from last year’s $731K, active listings up 8.8% from 16,419 but this number is still low so agents need to put in more work to get sellers to sell their property and get buyers to jump in to work well with the supply and demand chain.
The days on market (DOM) is up from 25 to 27 so there are definitely some positive numbers. However, the number is still low and the Toronto market is extremely competitive especially with anything listed under a million dollars; the semi-detached and the detached although getting a detached at this pricing will be quite the hassle.
Especially for the semi-detached working in the price range of between 699-799 up to a million will work but most time it’s frustrating when you think you can get a property for a certain price and then end up having to pay a few more hundred thousand dollars on top so you need to find the right agent that is going to properly guide you through this process.
This is necessary as the numbers will continue to climb because inventory is so low but when things start evening out it will be a bit better. But, until then just look to a professional agent to guide you through the process to avoid any particular losses.
Month over month comparison
Looking at numbers between July and August, there’s a noted drop broken down below.
• Sales dropped from July’s 6,961 to 6,839
• Average sales price is also down from $782K to $765K
• Active listings went down from 19,725 to 19,664
• The DOM has gone down as well from 25 to 27
Looking at the data, there is an obvious low inventory and this kind of creates a dilemma because many sellers aren’t feeling all that confident about the numbers and the stability of the market so they are staying put, not really putting anything up. And this, in turn, is creating a competitive streak with buyers.
The one thing both people listing their property or buying should keep in mind is properly analyzing and preparing to either some fast action, getting in on the property as soon as you can or a longer marketing proprietary strategy in terms of price points.
Break-down of house type
We’ll be covering;
The sales numbers are where they are at because sales are starting to gain momentum under detached. It’s a little harder to get on with the condos and townhouses, their going rate is not all that high and especially for condos it can be quite expensive so not many people want to work with that. Looking at the numbers for the area codes 416 and 905;
Detached and semi-detached beat the condo and the Townhouse combined because of the slightly higher price points and looking at year over year, the percentages detached has an increase of 17.7%, semi-detached goes down by -1.0%, townhouse up 5.6% and condos up by 0.7%.
The inventory is up for the detached which shows more promise as more people are coming into the market. Sellers need to get in more on the market though to catch up with the demand because as for now, prices will continue to go up.