Susan MacLeod

August 2017

14 August 2017
Susan MacLeod

 

Toronto’s average house prices in the 905 and 416 areas have dropped since April of 2017 but prices  are still up on average from a year ago by 5%. This  includes all property types, condos, townhouses and detached homes. 

Whats Going On In Toronto Realestate Land!?


The data suggest the GTA is facing an uneven downturn in house prices that is not being felt to the same extent in some hot neighbourhoods or in certain areas with generally lower prices that remain attractive to first-time buyers.

The numbers also support predictions that Toronto’s recent downturn in house prices may reverse course later this year. 

For the most part, the Real estate Market this summer is favouring Buyer’s. However the condo market is still firmly a Sellers Market with a 25% increase in value since last year at the same time.

The Summer market typically experiences a slow down as both Buyers and Sellers are distracted by the warm weather and summertime fun. Summer market statistics are often not the best indicator of housing market conditions.

After labour day when Buyers and Sellers start to re activate we will start to get a better sense of the impact of the “fair housing Plan” and the higher borrowing costs. So far, these two factors have had a huge psychological impact on the market and have contributed significantly to the slow down in sales and prices.

Home buyers benefitted from more choice this July compared to the same time last year. Once the fall Realestate season rolls in and once the kids are back in school many of the Buyers who are presently absent  will start to re-engage. Additionally the anticipated mortgage increases are expected to influence the motivation of Buyers this fall and the market, currently favouring  Buyers could change as more people compete for the best available properties. Should Sellers decide to wait out the uncertainty of the current market and choose to wait until the spring to sell, then inventory will be lacking and we will see Buyers scrambling over what is available…or not…

Nobody really knows for sure what the fall will bring. I am hoping for a more balanced market with more available listings and motivated Buyers.

      Many Sellers decided to “Cash Out” last spring once they saw the crazy 35% increase in prices in February and March.

                                   

  

Quite a few  Sellers missed the “sweet spot “and terminated or suspended their listings because they were not getting the multiple offers and hundreds of thousand of dollars over list price that they had anticipated. It is possible these Sellers will decide to re list in the fall causing another surge in available properties after labour day or they may decide to wait out it out and see what trail other Sellers  blaze. I suspect we will see at least half of those suspended listings re emerge.

This summer, it has been very pleasant to see the majority of properties listed at the price the Sellers are willing to accept.There have been a few cases where listing low has had brilliant results for the Seller and brought out multipleBuyers who bid over asking but this is not as sure a strategy as it was in February, March and April.

City wide the annual increase in value is  good ! If your house was worth $870,000 last year (the average price for a  semi in the 416) then  you have made almost $40,000 in a year. For Buyers, saving that much in a year  is a challenge and historically prices increase at least that much every year. So why wait?

Each Community and area of the city is unique, as is each property. The Statistics can only tell you so much. Should  you like to have a focused understanding of the current market conditions in your neighbourhood and a strategy for selling your property I would be delighted to discuss it with you.

I love working with Buyers too!

Globe and Mail: Toronto Downturn.Not in these neighborhoods