Hello all! For those that don’t know me, my name is Danielle Demerino, a Toronto real estate agent here to report on what the heck is going on in the real estate market these days.
The current real estate market continues to surprise us all. We have seen huge increases in pricing, decreased inventory across the map, and the market is beginning to show signs of even further tightening which results in more competition across buyers as we head into fall.
Generally this time of year (September and October) we see pricing increases but this unpredictable market imbalance is forecasting that a further increase in the next couple of months is on the horizon. I know, this seems crazy to say considering the abundant price increases that we have already seen; however, with inventory at its lowest in almost 25 years, there is only one place for prices to go and that’s up.
In August, new listings dropped 43% when compared to a year ago and were 15% lower than their 10 year average. After a peak of sales in March, we have seen a decline in monthly sales volumes of 45% which occurred due to the new listings dropping by 53% (during the same time frame). The ratio of sales-to-new listings grew to a record 81%, surpassing the previous high set in 2017 (79%) and soaring well above the decade average of 64%.
DEMAND INDICATORS
The sales growth has shown to be the strongest for condos in the $800 to 899 thousand range and detached homes in the $1.5 to 1.74 million range in August with activity up 40% when compared to last year.
The 905 region of the Greater Toronto Area showed the strongest annual price appreciation falling around a 9% increase for condo apartments and 25% for detached homes. The 905 region also experienced the lowest inventory levels across all housing types. The 416 region grew the fastest when it comes to detached homes in East Toronto at 21% and condo apartments around a 16% price increase.
At the end of the day, everyone is watching for new listings and waiting to see if the new supply that comes this fall will be the right amount to finally cool the market. While the federal election has many of us hoping that a more balanced market is around the corner (making it easier for first time home buyers, bans on blind bidding, further restrictions on foreign buyers, housing supply issues), we will just have to wait and see what the future of the market holds.
For an update more specific to your neighbourhood and housing type, please don’t hesitate to call me at 416-728-54010.
