With over half of the year finished, and having passed through Q2, it is a good time to look at the status of the real estate market and see a summary of the past month, before looking ahead at the season to come. Here is a summary according to TREB of the August activity and what experts predict for the real estate market moving into fall.
- The sales in August were up by two percent over July, as per a seasonally adjusted basis, and the seasonally adjusted August selling price was slightly down, by 0.2 percent.
- The annual rate of sales growth surpassed the rate of new listings growth, and the summer as a whole experienced market conditions that were tighter than expected.
- The end result of the month showed that there is less than two months of inventory in the city of Toronto. Collectively, many GTA neighbourhoods also continue to suffer from lack of inventory, presenting a problem should demand continue to accelerate as experts predict.
- In August, there was a total of 6839 properties which were sold, at an average price of $765 270. The number of sales present a year over year increase from August 2017 of 8.5% and a price increase of 4.7% compared to August 2017.
- Semi-detached and townhouse prices were down compared to last year, and detached and condo prices were up.
- In August, a detached home, on average, sold for $977 187, a semi-detached came in at $741 873, townhouses went for an average of $624 472 and the mean condo price was $541 106.
The fear of a Toronto housing crash sits on the minds of many, as they watch Vancouver’s slow crash. Experts however don’t think that is in the cards in the coming months. The mortgage stress test has helped keep the market in control and demand is still strong in the GTA. Experts recognize that many regions of the GTA have a lot of recovery to do from 2017, and this is expected to continue through the coming months.
The fall season marks the second busiest time in the market after spring, and as such, many real estate agents tend to release properties at this time, based on the idea that there is pent-up demand from the summer. Experts assume this will be the case, and that this will impact both condo and housing markets. The price growth will be more moderate compared to the fall of 2017, but consumer confidence will continue to allow houses to move.
Expect a slight lull as the season gets started, in these first couple of weeks, and families get settled back into a school routine, but within a few short weeks, the fall real estate market should be on the run.
Need help finding your next home? Are you considering selling and wondering if it is the right time in the current market trends? Reach out to us at Hallmark Realty and let us help you out!