What a July!! For me personally, summer is a chance to hang out with family and friends, play some golf (and get in a little bit of real estate related work). January – June is so frenetic in the Real Estate world and I look forward to the summer months to rest and recover and catch up on some missed (and sometimes neglected) relationships.
I trust you, too, are taking the time to enjoy summer. After all, summer is short and we should make the most of these long, lazy days!
As always, I wait until the Toronto Real Estate Board releases its monthly data so I can interpret and offer input on our respective market areas. The media is all over the TREB report by about the 6th day of every month. And typically, I see a spike in the question, “So, Michael, what are your thoughts on the market?” And August 6 was no different. Within hours of TREB releasing its July report, I had been asked the question no less than a dozen times.
So here we go. TREB announced some very good news for July. Overall sales were up 24% compared to July 2018; and prices overall were up 3.2%. Condo sales and several pockets of the market contributed significantly to the overall price increase. Single detached homes, the hardest hit by new mortgage regulations, experienced a slower price growth and in some markets actually saw a further erosion of price. (For the TREB infographic, click here; for the full report, click here.)
Let’s look at each of our trading areas and compare with the overall TREB data. Please note, as always, that the overall market information provided does not necessarily speak to your specific home or circumstances. The data itself is based on Median prices that may also be impacted by a higher or lower number of sales in any given area each month. All decisions respecting your real estate goals or plans should be made specifically with your local market in mind and in consultation with your Real Estate professional. (We hope that is us when the time is right!)
MEDIAN FREEHOLD HOME PRICES – Year over Year
DETACHED SEMI-DETACHED TOWNHOME
AREA 2018($) 2019($) change 2018($) 2019($) change 2018($) 2019($) change
Richmond 1,249,444 1,250,000 +0.04% 743,500 850,000 +14.3% 797,000 855,000 +7.3%
Aurora 995,000 980,000 -1.5% 650,000 720,000 +10.8% 675,000 706,000 +4.5%
Newmarket 882,500 821,250 -0.15% 657,500 672,563 +2.3% 635,000 642,500 +1.2%
East 863,000 830,000 -3.8% 717,000 715,000 -0.3% 648,000 540,000 -16.7%
Bradford 706,000 700,000 -0.85% 602,500 595,000 -1.24% 585,000 583,000 -0.34%
Innisfil 550,000 530,000 -3.6% N/A 575,000 N/A 460,000 455,000 -1.1%
TREB 845,000 870,000 +2.96% 699,250 730,000 +4.4% 641,750 667,750 +4.05%
Another key TREB stat each month is the overall sales and active listings. TREB wide, number of sales increased by 24.3% and active listings decreased by 9%. A clear indicator of a tightening market – which typically leads to price growth. More buyers, less homes for sale. The law of supply and demand. So how do the TREB stats compare with our trading area? Please note the TREB numbers in my chart below do not match the percentage change noted above. For purposes of this update I have only looked at the Freehold Detached, Semi-Detached and Townhome data.
|Total Sales (July)||Active Listings (July)|
The TREB-wide trend supports the typical law of supply and demand. More sales, less inventory, rising prices.
Oddly, York Region and South Simcoe continue to perform more as an outlier than the overall TREB market. Across our trading, we are similarly seeing less inventory and an increase in sales. However, the York and South Simcoe areas continue to under-perform on price. An interesting anomaly!
Should you or someone you care about have any Real Estate plans, our team is here to assist. We look forward to the opportunity of serving you in the days ahead. Enjoy the rest of summer!
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