July 2018 Toronto Market Update

07 August 2018
Life and the City


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Toronto resales gain 18.6% in July, average selling price up

There was strong growth for resale properties in Toronto last month in July, with sales up 18.6% year-over-year to 6,961 units.

The Toronto Real Estate Board (TREB) reports that the average sales price was up 4.8% to $782,189,  including a moderate rise for detached home types.

Preliminary seasonal adjustment shows a 6.6% rise in sales compared to June, with the average sales price showing a 3.3% rise month-over-month.

That puts seasonally-adjusted sales at a 2018 high point and the average sales price at the highest level since May 2017.

"We have certainly experienced an increase in demand for ownership housing so far this summer. It appears that some people who initially moved to the sidelines due to the psychological impact of the Fair Housing Plan and changes to mortgage lending guidelines have re-entered the market. Home buyers in the GTA recognize that ownership housing is a quality long-term investment," said Jason Mercer, TREB's Director of Market Analysis.

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However, supply issues remain. New listings were down 1.8% year-over-year and TREB president Garry Bhaura says more needs to be done by officials to address the low inventory issues.

“The new provincial government and candidates for the upcoming municipal elections need to concentrate on policies focused on enhancing the supply of housing and reducing the upfront tax burden represented by land transfer taxes, province-wide and additionally in the City of Toronto," said Mr. Bhaura.

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Summary of the significant real estate milestones for Toronto in July 2018

  • The market is showing a slow recovery from the double shocks of tighter lending criteria and an increase in mortgage rates.
  • 2nd lowest July sales since 2010 (6,564)
  • The ratio of sales-to-listings dropped slightly to 35.3% in July – Now in a moderate seller market territory
  • The average sale price came in at $782,129– which was up 4.9% compared to July 2017 – Remember last year the new Ontario government rules came into effect on April 20th which really influenced the late spring market last year
  • Note that this average was still over 10% higher than 2 years ago in July 2016
  • Overall sales in the month were up 18.6% from one year ago
  • The GTA real estate market overall averaged the days-on-market at 25 – a more normal level for Toronto’s summer months
  • Detached home sales in July 2018 with a purchase price over $2,000,000 were down 60% from last year
  • It’s noticeable that first-time buyer aspirations are now shifting to a condominium lifestyle – CONDO sales took a 36.3% share of the total market
  • Downtown condo active listing numbers were lower in C01 and C08 by 15% from last year at this time
  • The downtown condo days-on-market average was 17-20 days – significantly faster than the overall market
  • The ratio of sales-to-listings for condos downtown ranged between 65% in C01 to 61% in C08 indicating an extremely strong seller’s market… close to double the GTA overall.
  • The average sale price for downtown condominium suites is up by roughly $70,000 from July 2017
  • Building on this higher demand due to better affordability, condo appreciation in the two main downtown markets averaged 11-13% year-over-year
  • Markets in York Region and other 905 neighbourhoods have suffered the most from the market slowdown – York Region is now showing that they’re in ‘buyer market’ territory
  • Expect inventory and sales increases as we move towards the fall market - buyers should watch for more opportunities to get the condo or house of their dreams.

Do you have questions about the market, or want to know the current market value of your home or what properties have recently been selling for in your neighbourhood? We'd be happy to help. Get in touch! 

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