GTA Housing Statistics Turn the Corner in June

Home sales in the Greater Toronto Area (GTA) were 2.4% higher in June 2018 than they were in June 2017, and the average selling price edged up on a year over year basis by 2%.  This is the first time since 2016 that unit sales increased year over year and now reverses the year on year trend of declining monthly unit sales seen every month since April 2016.   And new listings dropped from those recorded in June of last year by 18.6%, meaning that market conditions appear to be tightening, signalling that the housing market has turned the corner to a more positive course, as sales accounted for a 10.4% greater share of listings, up from 40.4% of active listings in June 2017 to 50.8% in June 2018.

There was also a change in the mix of properties sold in June 2018 compared to June 2017, with low-rise home types accounting for a greater share of sales at 63.2% this year compared to 61.0% last June.  Sales of Detached and Semi-Detached homes were up by 5.5% and 8.1%, respectively, year-over-year in June, while condominium unit sales decreased by 5.3% in the same period.

All of this is happening as a result of that fact that home buyers are starting to move back into the market, after adjusting to the regulatory impacts of the foreign buyers tax which took effect in April last year, and the generally higher borrowing costs and new mortgage qualification stress tests that followed.  The expectation is that we will see continued improvement in sales over the next year, although it is likely that issues related to the supply of listings will persist, leading to increased upward pressure on home prices as competition among buyers intensifies.

Finally, it is interesting to note that unit sales and selling prices were up in each and every month in 2018, reversing the trend that started in April of last year when the impact of the foreign buyers tax negatively impacted both numbers until housing activity rebounded somewhat in the fourth quarter, when buyers rushed to secure home ownership prior to the new stress tests coming into effect in January of 2018.   As the chart below also demonstrates, home ownership has proven to be a positive long-term investment.

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out. 

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Kitchen renovation has greatest potential to boost a property’s sale price

TORONTO, JUNE 28, 2018 – According to a cross-Canada survey of over 750 Royal LePage real estate experts, a kitchen renovation is the clear upgrade of choice with the potential to boost a property’s value by more than 12.5 per cent.[1] Both ranking second, a finished basement or a new bathroom has the potential to increase a property’s value between 2.5 per cent and 12.5 per cent, depending on the investment.

“To financially benefit from a home improvement project, you need to keep potential homebuyers in mind,” said Tom Storey, real estate agent, Royal LePage Signature Realty. “While updating a kitchen should increase your sale price, a pool can actually deter families with young children or those who are looking for less maintenance.”

Adding a pool or deck is considered the least worthwhile renovation to increase a property’s value with pricing potential limited to a maximum of 2.5 per cent of the value of the home.

For Canadians looking for more general guidance on where to focus their home projects, the vast majority of surveyed experts recommended interior renovations (95.0%) over exterior renovations (5.0%).

“Curb appeal is important but more time is spent indoors at the open house and that is where buyers typically fall in love with a home,” added Storey. “When renovating with the potential to sell, the most important thing to remember is to use colours and materials that are popular and not too personal.”

The survey showed that prospective sellers are willing to invest less than 2.5 per cent of a property’s value on home renovations prior to listing their home, which represents an investment of up to $15,138 on a property valued at $605,512[2] – the current median home price in Canada.

When asked which generation is the most likely to renovate their home, 45.1 per cent of surveyed experts said baby boomers, as many are planning to sell and downsize. They are also most likely to have the funds needed for a significant renovation.

“Baby boomers run the risk of their property selling for a lower price or languishing on the market for longer than expected if they held their property for a long period of time without updating periodically,” said Storey. “Although many buyers can see themselves making home improvements themselves, its very hard for a buyer to get excited or imagine living in a space that is run down or the decor reflects another generation.”

Popular Home Improvements

About the home renovations ROI survey.

The Royal LePage Home Improvement Survey polled 766 real estate advisors from across Canada, between June 20, 2018 and June 25, 2018. Each respondent was asked to complete an online survey composed of 8 questions on the value of popular home improvements.

[1] Statistic referenced in table Popular Home Improvements

[2] National Home Price Aggregate, Royal LePage House Price Composite, Q1 2018.

This article is curtesy of www.royallepage.ca.

I offer complimentary home evaluations. Please do not feel obliged to list and sell with me when you request your current home evaluation. I am always happy to help, and when you are ready, I will be available to provide you with my full real estate experience.

Request your home evaluation:

PLEASE CALL/TEXT AT 416-419-5226 OR EMAIL LUBA@LUBABELEY.COM

May Market Report - Steady Price Growth in the GTA Housing Market

In May, we saw a continuation of the steady price growth experienced in the Greater Toronto Area (GTA) housing market during the 4 previous months.  So far, in the first 5 months of 2018, average home prices in the GTA have increased by 9.6%, to $805,320.  Unit sales have also increased each month in 2018 - from 4,019 units in January, to 7,834 units in May.

As I mentioned in last month’s blog, the housing market conditions in 2018 are very different than the conditions experienced during the comparative period in 2017.  But beginning in May, and through the second half of 2018, the comparisons will become more meaningful, as May, 2017 was the first month last year when the impact of the foreign buyers tax began to effect a slowdown in the rate of price growth and market activity, following the frenzy in the months prior when prices were bid up to unreasonable levels due to short supply and speculation.  So for the first time, we have the impact of the foreign buyers tax in both monthly results year-over-year, which makes a May to May comparison a little more relevant.

It is interesting to note, therefore, that new listings were down by more than sales this May compared to last year, (26.2% versus 22.2%), meaning that competition heated up among buyers.  And there are indications from sellers that listing intentions are down significantly since the Fall, meaning the supply of homes available for sale could continue to be an issue in the latter half of 2018.  And when the supply of homes decreases, prices increase, as competition among buyers intensifies.

This is particularly true in the City of Toronto (416) where, for example, average selling prices were at or above average listing prices for all major home types in May.  What is even more interesting, is that the further out you travel from Downtown Toronto, the weaker the market gets.  And since the GTA housing numbers are an average over the entire 416 and 905 regions, this proves how strong the market is right now in the City of Toronto, compared to the rest of the GTA, as the following chart shows:

Finally, these last two charts highlight the composition of the May sales by home type in each of the 416 and 905 sub markets.  In the 416 region, condominiums accounted for a commanding 57% of unit sales and detached homes made up 25%, while in the 905 region it was detached homes that accounted for the majority of unit sales, at 55% of the total.  What these charts clearly indicate is that condominiums are the dominant force driving unit sales in the 416 region and are in high demand compared to higher priced detached homes, while the opposite is true in the 905 region where the inventory of detached homes tends to be more prevalent and buyers have more choice, which means these homes take longer on average to sell.

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out. 

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SOPHISTICATED BOLD KITCHEN COLOURS

Hello May! Sunny days are finally here. Japanese Cherry blossoms are reflecting the warmth of the sun and the earth and expressing their beauty in full boom! This time of the year makes me very happy - time for awaking, rebirth and celebration of nature. Be sure to check out the beauty of the cherry blossoms in High Park now!

As you know, I'm always on the hunt for something new and interesting, especially when it comes to interior design. 

If you were looking for new ways to update your kitchen, did you think of painting your kitchen cabinets in the colour that's not grey, brown, beige or white? Try some of these bold and vibrant hues that truly transform the space. Choosing a colour isn't easy, that's why Benjamin Moore and other companies offer a variety of tips how to do it right. Be brave, be daring and enjoy!

Images are curtesy of www.houzz.com.

April Market Report | Which Headline Tells the True Story?

Average Selling Price for Homes in the GTA up 9.2% Year to Date, OR

Average Selling Price for Homes in the GTA down 12.4% in April Year-Over-Year?

Well, both are true actually.  But which one is more relevant?

I believe the first headline is more relevant, because it tells us what is happening in the current real estate market.  We already know that the GTA real estate market reset from its historical highs (in April, 2017 the GTA recorded the highest ever average selling price) after the introduction last year of the foreign buyers tax in Q2, followed by the more restrictive mortgage qualification rules introduced at the beginning of 2018.  Add to those measures the 2 successive increases in interest rates by the Bank of Canada and the market cooled down considerably.

Headlines are meant to grab the reader’s attention.  And one could argue that negative headlines tend to attract more attention than positive ones.  But the facts are that the GTA real estate market is trending positive, despite being off its historical highs.  Take a look at these statistics for the first 4 months of 2018:

Unit Sales and Active Listings have increased in each month.  Average selling price is up 9.2% in four months.  Days on the Market have gone down by more than a third, and Average Selling Price to List Price is stable.  These are all signs of a healthy real estate market.

But the GTA real estate market is really a tale of 2 cities.  As reported by TREB in their latest Market Watch:

“The year-over-year change in the overall average selling price has been impacted by both changes in market conditions as well as changes in the type and price point of homes being purchased.  This is especially clear at the higher end of the market.  Detached home sales for $2 million or more accounted for 5.5% of total detached sales in April 2018, versus 10 per cent in April 2017.”

The differences in the composition of the current GTA real estate market can seen by looking at the following statistics broken down by major home type:

There is roughly a 3 month supply of detached homes for sale in the GTA, whereas there is only a 1 ½ month supply of condominium units for sale. As well,  the increase in Average Selling Price for Condominiums, at 10.2% for the first four months of 2018, is outpacing the rate of increase for Detached homes, at 6.1%, as there is obvious pressure at the lower end with Condominiums in short supply.  TREB expects that “once we are past the current policy-based volatility, home owners should expect to see the resumption of a moderate and sustained pace of price growth in line with a strong local economy and steady population growth”.

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out.

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GTA March Housing Stats – a stark contrast from 2017

Toronto Real Estate Board Director of Market Analysis Jason Mercer perhaps sums up the Q1-2018 Greater Toronto Area housing market best:

“Right now, when we are comparing home prices, we are comparing two starkly different periods of time: last year, when we had less than a month of inventory versus this year with inventory levels ranging between two and three months.  It makes sense that we haven’t seen prices climb back to last year’s peak.  However, in the second half of the year, expect to see the annual rate of price growth improve compared to Q1 as sales increase relative to the below-average level of listings.”

Now look at this chart, which shows those two “starkly different periods of time”.   What the chart shows is the huge run up in prices in the first half of 2017, followed by a reality check, as prices declined rapidly in Q3, after the introduction of government measures to cool the market.  Prices rebounded somewhat in Q4, as some buyers and sellers accelerated their property ownership decisions prior to the introduction of the more stringent lending guidelines which came into effect in January, 2018.  And now, we are back to some period of relative normalcy, with modest price appreciation in Q1-2018.

So it doesn’t really matter that units sales were down by almost 40%, from 11,954 units in March, 2017 to 7,228 units in March, 2018, or that prices were down on average by 14.3%, from $915,126 to $784,558 because these results cover two starkly different periods of time, and are, therefore, not comparable.

What is meaningful, however, is that the number of active listings in March, 2018 was 103% higher than the level in March, 2017 and that the average time it took to sell a home in March, 2018, at 20 days, was roughly the same amount of time it took back before the market went crazy in Q1-2017, when the average time it took to sell a home in the GTA was below 10 days.  And the average selling price has actually increased in each of the last 3 months.  I’ve said it before and it bears repeating that we are in a balanced market, one which TREB believes is poised for stronger growth later in 2018, particularly in the condominium market where prices have been steadily on the rise and inventories have become ever more scarce.

If you are curious to know how much your property is worth today or how much you can afford to buy, please feel free to reach out; and if you found this article helpful please hit "Like" and "Share".

What’s the difference between an Agent, Salesperson, Broker and a REALTOR®?

You’ve heard many terms when referring to people who sell real estate. What’s the difference between an Agent, Salesperson, Broker and a REALTOR®?

Yes, the terminology can be confusing. While it may not seem important to know the difference between these terms, there are some common traits and useful distinctions to be aware of when you look to buy or sell a home.

Let’s start with the most commonly misused term, “agent”. While most people would use that term to describe the individual real estate professional assisting them, that’s not technically correct; legally, “Agent” is actually the term given to the brokerage (the company) that represents you as the buyer or seller. An agency relationship is formalized when you sign a contract either in the form of a buyer representation agreement or a typical listing agreement. These are between buyer/seller and the brokerage, not the individual representative.

A real estate salesperson or broker will be the person who presents and explains the representation agreement to you on behalf of the brokerage. In most cases, they will also usually be the same person who represents you during the buying or selling process, on behalf of the brokerage.

Salespeople and brokers are both real estate professionals who are subject to regulation under the Real Estate and Business Brokers Act, 2002. They must be employed by a real estate brokerage and must be registered with RECO (Real Estate Counsel of Ontario) in order to trade in real estate in Ontario. More info at RECO.on.ca

Education is what distinguishes a broker from a salesperson. A salesperson achieves the broker designation by successfully completing the Broker Registration Education Program. This course will provides an overview of how to establish, operate, and manage a real estate brokerage. More info at OREA.com

What's the definition of a REALTOR®? REALTOR®, REALTORS® and the REALTOR® logo are certification marks owned by REALTOR® Canada Inc., a corporation jointly owned by the National Association of REALTORS® and CREA.

Not all real estate agents are REALTORS®.

The REALTOR® trademarks are used to identify real estate services provided by brokers and salespersons who are members of CREA and who accept and respect a strict Code of Ethics, and are required to meet consistent professional standards of business practice which is the consumer’s assurance of integrity. More info at CREA.ca

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How do the Month of February Results Compare to the Long-term Trends in the GTA Housing Market?

The Toronto Real Estate Board (TREB) released its February Stats on March 6, announcing that Greater Toronto Area REALTORS® reported 5175 residential transactions through TREB’s MLS® System in February 2018.  This result was down by 34.9% compared to a record 7,955 sales reported in February, 2017.  The overall selling price fell by 12.4% year-over-year to $767,818 from $876,336.  But remember, prices spiked in the first quarter of 2017.  If you put that aside and compare this result to February 2016, you will note that prices in February 2018 remained 12% higher than the average reported for February 2016, and that represents an annualized increase which is well above the inflation rate for the past 2 years.

Active listings increased by 147.4%, from 5,400 a year earlier to 13,362 in February 2018, accounting for an increase in inventory levels to roughly 2.6 months of supply in 2018, from the unhealthy 0.7 ratio seen last February.

Last month I presented some charts showing what was going on in the market on a micro basis, compared to the past 5 years.  This month, I’m digging deeper, going back 10 years, but on a more macro level.  The solid horizontal line in each of the following charts shows the 10-year average value for the metric being measured.  And, except unit sales for the month of February 2018, which were off significantly from their 10-year average, the charts present a pretty clear picture that February 2018 produced results that were very close to historical averages for that month.

In fact, average overall prices in February, 2018 were just slightly off their 10-year trend average growth rate (green line below), mostly because the abnormally high run-up in prices in 2017 that was caused by demand-supply imbalances, (particularly in single family detached homes) pushed the trend line upwards.  Another interesting observation is that although February 2018 prices on average were down by 12.4% when compared to February 2017, condominium prices (the blue column in the chart below) continued their upward trend, increasing by another 10.1% over their February 2017 record level.  And condominium prices are now trending above their 10-year average growth (blue line below).

This next chart shows that the market is a more balanced one in February 2018 than it was in either February 2016 (when inventory of homes for sale was extremely low at just over 1.5 months of supply) or February 2017 (when inventory was almost non-existent).  Inventory compared favourably in February 2018, at 2.6 MOI, to the historical average of 2.4 months of supply.

Lastly, a comment on interest rates – the Bank of Canada decided not to increase its benchmark interest rate this month from its current level of 1.25%, adopting a cautiously negative tone about the growing uncertainty for the global and Canadian outlooks as a result of the U.S. trade policy which is edging towards more protectionism and higher tariffs.  Home buyers can breathe a sigh of relief (however brief) that interest rates will likely remain at their current levels for at least another quarter.

If you are curious to know how much your property is worth today or how much you can afford to buy, please feel free to reach out; and if you found this article helpful please hit "Like" and "Share".

March Market Report - Pictures Say It All

The market has returned to a more balanced one, reflecting the same characteristics as it did back in January 2014 and here is why.

The Toronto Real Estate Board (TREB) released its January Stats on February 6, announcing that Greater Toronto Area REALTORS® reported 4,019 residential transactions through TREB’s MLS® System in January 2018.  This result was down by 22% compared to a record 5,155 sales reported in January, 2017.  The overall selling price fell by 4.1% year-over-year to $736,783 from $768,351, with the decline being weighted toward the detached segment of the market, continuing the trend seen in the latter half of 2017.  Active listings increased by 136.3%, from 5,034 a year earlier to 11,894 in January 2018, accounting for an increase in inventory levels to roughly 3.0 months of supply in 2018, from the unhealthy 1.0 ratio seen last January.

Now I want to show you some pictures that put these statistics into historical perspective.  And the results may surprise!  January home sales increased by roughly 1,000 units from 4,103 units in 2014 to 5,155 units in 2017, then decreased in 2018 back to the 2014 level.  What is interesting, however, is that the mix of sales by major home type during the 4-year period saw the share of condominiums as a percent of total unit sales rise by 5.4%, from 26.7% of the total in 2014 to 32.1% in 2018, while the share of higher priced detached and semi-detached homes decreased by 5.4%, from 46.2% of the total to 41.8%.  The shift was most dramatic from 2017 to 2018, as affordability became a major issue, particularly for first time home buyers who have flooded the condominium market.

After a period of declining interest rates, it appears that the recent Bank of Canada increases are setting the stage for further interest rate increases on the horizon.  But interest rates today are essentially the same as they were in January 2014.

The market has surely returned to a more balanced one, reflecting the same characteristics as it did back in January 2014, when the inventory of homes (MOI) stood at roughly 3 months of supply, indicating that on average a home took 3 months to sell in 2014, exactly the same amount of time as it would in 2018, but a far cry from January 2017 when the inventory of homes was at an historically low of 1 month supply.

Lastly, although prices were down on average by 4.1% year-over-year this January, they are still up a cumulative 49.3% - from $526,965 in 2014 to $736,783 in 2018 - for the average home sold in the GTA.  Interestingly, the average annual price increase for detached homes in the 4-year period was 9.0% per year, compared to the average annual price increase for condominiums of 10.0% per year, but with lower priced condominiums making up a larger share of the total unit sales in 2018 than they did in 2014, this brought the overall annual increase in prices down to 8.7% per year on average for all housing types during the 4-year period.

If you are curious to know how much your property is worth today or how much you can afford to buy, please feel free to reach out; and if you found this article helpful please hit "Like" and "Share".

Expanding Regional Economies to Lift Home Prices in Canada’s Major Markets

Shorter than anticipated housing market correction puts Toronto back on track 

Highlights:

• Toronto to have a shorter housing correction than seen in Vancouver

• Tighter access to mortgage financing and eroding affordability in Vancouver and Toronto have more buyers shifting their focus to condominiums, putting upward pressure on price appreciation

• Rising interest rates and a strong Canadian dollar support more moderate home price appreciation

TORONTO, October 12, 2017 – According to the Royal LePage House Price Survey [1], home prices in Canada’s five most populated housing markets are rising at a similar, healthy pace on a quarter-over-quarter basis, the first time this has occurred in six years.

The year-over-year price change data in the Royal LePage House Price Composite is the most useful metric for determining the health of Canada’s real estate market. However, examining quarter-over-quarter movements can reveal useful short-term housing market trends. In the third quarter, home prices in the Greater Toronto Area, Greater Vancouver, Greater Montreal Area, Calgary and Ottawa all rose at rates between 1.5 and 3.5 per cent on a quarter-over-quarter basis, indicative of a much more balanced Canadian residential real estate market.

The Royal LePage National House Price Composite, compiled from proprietary property data in 53 of the nation’s largest real estate markets, showed that the price of a home in Canada increased 13.3 per cent year-over-year to $628,411 in the third quarter. When broken out by housing type, the median price of a standard two-storey home rose 13.9 per cent year-over-year to $748,049, and the median price of a bungalow grew 9.5 per cent to $525,781. During the same period, the median price of a condominium rose 15.2 per cent to $413,670.

“Uneven regional economic growth has plagued Canada for much of the past decade, a challenge most evident in the nation’s housing markets,” said Phil Soper, President and CEO, Royal LePage. “For the first time since 2011, we are seeing real estate in all five of our largest cities appreciate at a manageable, healthy clip. Canadian housing is enjoying a Goldilocks moment – not too hot, and not too cold.”

“For now, the Toronto and Vancouver housing markets have returned to earth,” continued Soper. “After a period of unsustainable price inflation and sharp market corrections, we are seeing low single digit appreciation in each. Calgary has shaken off the oil-bust blues and Montreal appears to be at the beginning of a new era of economic prosperity. Rounding out the ‘big five,’ the Ottawa market is behaving like it usually does – a picture of healthy market growth.”

“Marginally higher borrowing costs should dampen domestic demand somewhat, and with less currency-adjusted purchasing power, foreign buyer activity is off peak levels and will likely stay that way in the near-term,” added Soper.

During the third quarter, the Greater Toronto Area saw the largest year-over-year home price increase of any major Canadian market, surging 21.7 per cent on the back of strong gains witnessed at the beginning of 2017. Meanwhile, home prices in Montreal continued to climb at a rate beyond what has been the historical norm, appreciating by 14.3 per cent when compared to the same time last year, while Ottawa grew by 7.9 per cent over the same period. When looking at the largest markets in Canada’s westernmost provinces, Calgary and Greater Vancouver inched further out of their recovery, with home prices rising 5.0 and 2.5 per cent year-over-year, respectively.

Following a very similar trend to the Vancouver housing correction of 2016, the Greater Toronto Area market experienced a sharp drop in sales volumes beginning in April 2017, which continued through much of the third quarter. With underlying employment and economic growth on solid footing, the Toronto market began to grow again in August.

Potential buyers who were previously on the sidelines taking a wait-and-see approach have now jumped back into the market after realizing prices did not drop as certain market watchers had anticipated. On the supply side, some sellers who had attempted to capitalize on an uncharacteristically strong spring have taken their homes off the market. Together, these trends have caused the region to revert to a more balanced market where supply and demand have stabilized in the majority of areas.

Nationally, condominium prices increased 15.2 per cent on a year-over-year basis and have begun to appreciate faster than any other housing segment in large urban centres such as Toronto and Vancouver. This is likely to continue for the foreseeable future and begin a trend in other cities. The overall affordability of condominiums continues to attract first-time homebuyers and purchasers looking for attractively-priced real estate as new mortgage regulations, interest rate increases and higher home prices have effectively limited purchasing power.

Under the Ontario Fair Housing Plan, all private rental units in the province are now subject to rent control, and housing market watchers have a number of concerns regarding the impact of this legislation. Removing the ability to adjust prices by more than 2.5 per cent a year when long-term residential real estate price appreciation is approximately 5.0 per cent per year makes rental units less attractive to investors. It is likely fewer purpose-built rental projects will be launched in the near future. According to one industry report, more than 1,000 such projects have already been cancelled and vacancies have already fallen to 1.3 per cent across the GTA[2].

“Ontarians deciding between renting and buying a home are facing two tough options,” said Soper. “Purchasers trying to break into the entry-level market now face a highly competitive environment, while those waiting to buy are met with high rental prices brought on by a significant shortage of inventory.”

“There may be unintended consequences to new province-wide rent controls,” concluded Soper. “We need more family-sized units in the province’s cities; apartments with two or three bedrooms. Yet purpose-built rental projects are likely to focus on smaller bachelor or one-bedroom units, which tend to attract shorter-term tenants. The higher turn-over allows landlords to raise rates more frequently. This will put further upward pressure on the price of existing family-sized rental units.”

Full article link here.

Provincial and City Summaries and Trends

For more information visit: www.royallepage.ca

[1] Aggregate prices are calculated using a weighted average of the median values of all housing types collected. Data is provided by RPS Real Property Solutions.

[2] Urbanation Inc. report prepared for the Federation of Rental-housing Providers of Ontario, “Ontario Rental Market Study: Measuring the Supply Gap,” September 2017

If you are curious to know how much your property is worth today, please feel free to reach out, and if you found this article helpful please hit "Like" and "Share".

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Toronto Real Estate Market Returning to Balance

After an overheated performance for much of 2016 and 2017 which saw most homes selling at sky high prices, often well over list, and with multiple offers, the Greater Toronto Area real estate market is returning to balance as the summer closes.

Don’t believe what’s in the newspapers and media reports that Toronto’s real estate market is reaching a point where the bubble is going to burst.  It’s not supported by the facts.

The Toronto Real Estate Board reports in its latest figures, for the month of August, that sales of all homes recorded on MLS across the GTA were 6,357, down 34.8% year on year and that the average price only increased 3.0% to $732,292.

However, averages don’t tell the whole story, and there are pockets of real strength, particularly condominiums, where although sales were down 28.0% (mostly due to lack of supply), prices averaged 21.4% higher across the Greater Toronto Area.

Economic indicators are also pointing to fundamental strength, with real growth in the economy up 4.5% in the second quarter of 2017 and employment growth in the Greater Toronto Area of 1.3% during the month of July.  The impact of the recent (generally expected) Bank of Canada interest rate increases have yet to play out, but it's possible that they will not have a significant lasting impact on buyer sentiment, as the extreme “heat” that was being felt in the market has cooled somewhat as it returns to a more healthy balance of supply and demand.

Also, prior to the introduction of the Ontario Government’s Foreign Buyers tax last April, housing inventories in the Greater Toronto Area were running at some of their lowest levels in history, at or below 1 month’s supply, and this was reflected in the lofty month on month price increases experienced in what was truly a “sellers” market.

With the introduction of the new tax measures in April, active listings have begun to rise while sales have tapered off.  As a result, supply of homes has increased to a more healthy balance of 2.6 month’s supply in August, although down slightly from 3.1 month’s supply in July.

Typically though, during the summer months many sellers as well as purchasers are on the sidelines and activity wanes, while people are on vacation and out enjoying the good weather.  With summer drawing to a close, there is some optimism building, now the Greater Toronto Area real estate market has returned to a more healthy balance, that activity will pick up once again in the Autumn months.

When compared with other major Canadian cities, the Greater Toronto Area still has the lowest monthly inventory of homes, well below Montreal (7.8 months), Edmonton (5.5 months) and Calgary (4.1 months), and slightly lower than Vancouver (2.9 months),  meaning the Greater Toronto Area is still the strongest housing market in Canada.

If you are curious to know how much your property is worth today, please feel free to reach out and if you found this article helpful please hit "Like" and "Share".

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