July Toronto Real Estate Market Update
Hello and Happy Summer!
I hope you all have been enjoying the warm weather, spending some time outside, and maybe even escaping the city and taking some time off yourselves for a little rest and relaxation.
The July Toronto Real Estate Sales Statistics recently came out, and, well, it appears that the market also wanted a rest and decided to pack up and go on a bit of vacation…
So, What Exactly Happened?
July is historically always a slow month, but this month felt a little different (especially if you were trying to sell a condo.). Even with another interest rate drop announcement (second this year), the buyers did not immediately flock back to the market. Maybe it's simply the time of the year, or perhaps it wasn't enough to sway them to jump back in and start buying again.
Well, it’s a combination of both.
Prices are still very high, and the economy is not exactly on fire. A significant interest rate drop is needed to re-ignite the market. Maybe the predicted one in September will do the trick, but for now, many buyers are "waiting and watching."
Sounds rather gloomy, doesn't it? Take it with a grain of salt, my friends; I think this "slow down" is not so bad. My silver lining? Constant increases in price and sales are not good, and they are not sustainable. Even with a drop in rates, affordability is slim for many, so a slight drop in prices (while still providing a good profit if you bought a few years ago) is not the end of the world. It seems like a return to normality, or dare I say it? Balance. (Psst Tyson! We do not speak the devil’s name.)
You've already read my opinion on what is happening in Real Estate in general, but what about if you are actually in the market? What if you're a buyer or seller?
Buyers
You're in the driver's seat with lots of housing types available and the potential for negotiation on favourable prices and terms. If you find a home you like in a neighbourhood that fits your lifestyle but was not always in budget, well...it might be now. As I mentioned before, there are opportunities. Talk to your realtor and ask, "Hey, is there anything available in x location for under $x?" You might be surprised.
Also, many homes that were listed but did not get enough attention were taken off the market, but that doesn't mean the sellers don't want to sell anymore. They are waiting for the market to pick up (it's inevitable—death, taxes, and real estate prices going up) and list again when they can sell in two weeks with multiple buyers and bidding wars.
But if you know what you want, and your agent is proactive, you might be able to convince those sellers to sell now directly to you. Maybe you can negotiate a lower price if you offer a quicker closing. Everyone is in a different financial position, so perhaps they need to sell ASAP.
Who knows?
The only thing we know is that there is opportunity for buyers right now. Enjoy it, but don't get too comfortable and try to time the market. There is no such thing. The "Wait and Watch" approach only works if you know what to watch for and when to act. If you are in a secure financial position and the deal makes sense, don't overthink it.
Interest rates will drop again soon, more will follow, buyers will return, and before you know it, you will be competing with other people, and prices will rise again, and you will wonder what happened. It's a vicious cycle.
Sellers
Relief is on the way. The Bank of Canada is planning another Interest Rate announcement in September, with many predicting another drop and potentially even two more before the end of the New Year.
In the meantime, don't panic. Stay positive, be flexible with showings, and make sure your home is looking its absolute best. Also, make sure you and your agent are in constant communication. Your agent should provide you with weekly updates, feedback updates, market news and analysis, and, of course, exhaust every option and opportunity to market your home.
A third open house after two months on the market? Sure, why not? You have no idea who is out there looking to buy. Maybe someone just got pre-approved but isn't working with a Realtor or looking actively right now. One sunny Saturday afternoon, they go for a walk in their favourite neighbourhood, stumble upon your open house, fall in love, and the rest is history. It happens a lot more than you would think.
I know, I know. It sounds silly, and what is another Open House really going to do? But that's precisely the point. We don't know, so why not at least try? Especially in this market. You need to be open and positive. Think of it almost like fishing and spreading your net as far and wide as possible.
It could be another open house, another round of social media advertising, or flyers delivered to your neighbours. There are many ways to market a property. Your agent should be active and creative when marketing and promoting your home.
But remember, agents are not miracle workers, and price is everything. If you are overpriced compared to your neighbours, you will not sell in this market. It's as simple as that.
You've read my personal opinion but now here are the cold hard facts.
Take a look at the July Statistics with the charts and breakdown below ⤵️
Please note these statistics cover exclusively the City of Toronto. Not Richmond Hill, Not Mississauga, Not Vaughan, etc. If you would like to know what's happening in another area in GTA please reach out and let me know. I'm happy to chat!
TOTAL # OF NEW LISTINGS
July did not have many new listings, in fact, across all property types there was a decrease compared to June,
Specifically,
Detached homes went from 1871 new listings to 1462, a -22% decrease.
Semi-Detached went from 467 to 346, a -26% decrease.
Freehold Townhomes went from 194 to 181, a -7% decrease.
Condo Townhomes went from 425 to 369, a -13% decrease.
Condo Apartments went from 3822 to 3684, a -4% decrease.
TOTAL # OF ACTIVE LISTINGS
With a lack of new inventory coming out, the number of active listings dipped for most home types except for Freehold and Condo Townhomes. Freehold Townhomes did not change at 228, whereas Condos actually saw an increase of 1.5%, going from 552 active listings to 560.
The rest were as follows,
Detached homes went from 2174 listings to 2044, a -6% decrease.
Semi-Detached went from 402 to 392, a -3% decrease.
Condo Apartments went from 6201 to 6141, a -1% decrease.
TOTAL # OF SALES
Sales were down across the board, except for Freehold Townhomes who improved from 63 sales in June, to 70 in July. Whereas, Detached, Semi, & Townhome Condos had significant drops (The June-July Summer drop off always hits hard), Condo Apartments continued from last months slow pace, only dropping 2% in sales. I'm very curious to see the August stats, and if the July Interest Rate drop will help improve things, specifically, Condo Apartments.
Meanwhile,
Detached homes went from 744 sales to 601, a -19% decrease.
Semi-Detached went from 236 to 171, a -26% decrease.
Condo Townhomes went from 169 to 134, a -21% decrease.
Condo Apartments went from 1014 to 994, a -2% decrease.
AVG PRICE
I always tell my buyer clients, July and August are great times to buy since so many other buyers shift their priorities in the summer. Usually it just means less competition and maybe we can negotiate a more favorable price or terms. But this July, for buyers, was something indeed, all property types dropped in average price.
Specifically,
Detached homes went from an avg. price of $1,758,649 to $1,648,021, a -6% decrease.
Semi-Detached went from $1,282,973 to $1,254,280, a -2% decrease.
Freehold Townhomes went from $1,319,736 to $1,230,046, -7% decrease.
Condo Townhomes went from $892,432 to $835,161 -6% decrease.
Condo Apartments went from $763,148 to $748,330, a -9% decrease.
AVG DAYS ON MARKET (DOM)
Not surprisingly the time it took to sell Real Estate in July was longer than June. It also appears to have had direct correlation with the Avg. Price (above), as perhaps the longer it took to sell a home, the more a seller was willing to be flexible in price.
Looking at each property type :
Detached went from 15 to 20 days to sell (+33%).
Semi-Detached 13 to 16 days (+23%).
Freehold Townhome 16 to 23 days (+44%)
Condo Townhomes 21 to 23 days (+13%).
Condo Apartments 26 to 29 days (+11%)
Ok! That's it for now. Thanks for reading and have a great day! 👋 - Tyson CR
Want to know what the current value of your home is or what's going on in your neighbourhood?
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