Susan MacLeod

The May Stats are in!

11 June 2017
Susan MacLeod

The May 2017 Stats are Here.

The market has been shifting since mid-April, making it slightly harder for Buyers, Sellers, and Realtors to predict what is going on. Which way to turn???

The Toronto Real Estate Board just released their Market Update last week, so I will explain.

Sale Price. Everyone’s Favourite Topic!

During the month of May the average price in the GTA, including the outer limits (the 905 area) was $882,937. May 2017 saw a 17% increase (approx. $113,000 on an average price home) vs. May 2016. This is a  great rate of return, and really great news for all homeowners!

Prices did drop almost 6% from last month. That was in April, when the average GTA house was $920,791. This is due in part to the increase of inventory and the reaction to the new government regulations. Seems reasonable, right?
Let’s look at Vancouver as an example.  The number of sales dropped a crazy 45% last year, after the Buyers Tax was announced. Although foreign buyers did not make up 45% of the market, people had an emotional reaction and the market slowed. But by May 2017, Vancouver had rebounded to near-record levels.

Number of Sales in the GTA.

There were 10,195 sales reported by the Toronto Real Estate Board in May 2017. The condo sector was down only 6.4% from April  and detached homes were down 26%.
*These figures represent the number of properties that sold and not how much they sold for.

Number of Listings.

This May the number of listings were up almost 43 % compared to a record low of May 2016, but exactly the same as 2015.
This was great news for Buyers who have been waiting ages for more listings and more choice. Not as great for Sellers, as this means more competition.

The good news for everyone is that this still represents only two months of inventory, meaning it would only take us two months to sell all the houses on the market, and since Economists consider a market with less than four months inventory to be a Seller’s Market; Sellers, you’re still in control. All is well.

Real Estate has trends, and with all the hype about rising prices many Sellers decided to take advantage of the record prices. A great many decided to cash out, and downsize or upgrade. Typically we see an increase in listings following the Easter long weekend, and that is exactly what happened. The new rules and regulations, rolled out at nearly the same time by the Provincial Government may have caused Buyers to hold off a bit, while they waited to see if prices would decrease further.

The recent marketing strategy has been to list low with an offer date, and hope for several offers to come forward, competing against one another. This past month there been so much choice for Buyers that some houses are not selling on the offer night, and the Sellers choose to re-list at a price that is more acceptable.

Since there have been so many re-listed properties in May, the listing stats for the month of May are somewhat unreliable.

What is the Bottom Line?

While prices are still up 15% -17% compared to 2016, you won’t be seeing the prices you saw in your neighborhood earlier this year. However, your home has still had an incredible year of appreciation, and you can still take advantage of all that extra equity by selling now, even though you won’t be selling at the highest price ever. And that’s fine! Price strategically and don’t overreact to the current correction.

The Opportunity is for Buyers Now.

And I mean, right now.There are so many properties available, and some are not selling on offers night. Many don’t even have an offer night. You have the opportunity to add conditions that protect you, something that has been rare the last few years. These windows of opportunity don’t last. It’s a great time to negotiate.

The Bottom Bottom Line:

Sales are down.

Number of available properties are up.

Prices are down.