Another good month for the Toronto real estate board, as TREB members sold 5,921 homes in July. The average sales price now stands at $857 823, up 17% over year-end 2016 of $729,827. There are 18,751 active listings on the market and with an anticipated sale of 5,500 homes in August, There are 4 listings, (homes listed for sale) for the average buyer to choose from. These are averages, with some areas having only two listings available per sale, others having 6 homes for sale. A balanced market is described as 4-6 listings available per sale, a seller's market is described as less than 4 listings per sale and a buyer's market is described as 6 + listings per sale.
Are you wondering why I said another good month, when the statistics talk about the market being down 40% year-over-year? That's the problem with some statistics, they don't give you a true picture. If Michael Jordan scored 60 points in a game (which he did 5 times in his career) and then the next game only scored 30 points, the headlines would read Michael Jordan’s scoring down 50%. Not really reflective of what happened or the quality of the game that he had, but it's a statistic! Another silly and misleading statistic is when the commentators say such and such baseball team hasn't beaten the other team in the last 30 years in the playoffs. The teams change pretty much every couple of years, what is it significance of bringing in a 10 or 20 year win-loss with one team against another? It makes no sense to me.
With 2016 being the most active year ever in the history TREB, and March where average prices increased by 30%, we have to take the comparison statistics with a grain of salt, as they do not reflect the reality of the current real estate market.
The economy, interest rates, high immigration, high demand, lack of inventory, remain unchanged. The government housing policies, while making some buyers delay their decision, will have no long-term impact on the Toronto real estate prices as we've seen in Vancouver. In fact, on average, in July homes sold at 98% of asking price with an average time on the market of 21 days. Good properties marketed well, are still selling quickly!
The wait-and-see attitude of some buyers and the normal slower summer market has created an opportunity for those who missed the market earlier this year to buy.
If you're thinking of purchasing or know of someone who is considering buying or selling, give me a call, I'll be happy to help. After all, you have a knowledgeable and experienced friend in real estate!
Have a great August!
Your friend in Real Estate.
PS. I’m never too busy for your referrals!
Steven Maislin, Broker
IRES, ABR, SRS, SRES, RENE