By: Michael Tough Realty Group
June 2018 Market Update
Tags: June 2018 real estate market update
GDP down 1.3%; Employment Growth down 2.6%;Unemployment rate up 5.9%; Inflation down 2.2%.....
Headlines and data are all too confusing for our daily consumption. Not sure about you - I prefer the cookies put on a much lower shelf. Life is too busy and we have hectic schedules. Most everything we see, hear or read is a brief soundbite meant only to capture our attention for a brief moment. Newspaper headlines, morning radio on the way to work and online articles posted to social media can often become our barometer of any decision we wish to make. We make certain assumptions based on the brief commentary; we create a story around our assumption based on our own reality; and we proceed to make decisions based on that story.
So here is the story the media and Toronto Real Estate board broadcast earlier this week. Sales are down 22.2%; total new listings are down 26%; and the average price is down 6.6%. If you quickly glanced at or heard these stats, and given that most people remember only a portion of what they see or hear, it is not unusual for one to assume that prices are down 22% and the sky is falling. Many will make real estate related decisions in the vacuum of not entirely accurate data.
Allow me to bring some greater clarity. Each housing style is different. Each community is different. Real Estate data is hyper-local and when making any decision, it can only be based on what you personally are selling and what you personally are buying. Where do you live now and where do you wish to move to?
As you can see, the data is quite different for each community and for each style of house. Obviously, prices are down for the most part since last year. And yep, we all know that. As I have blogged about in the past, market timing does not exist. The only timing is when it is best for you. And decisions can only be made when looking at the bigger, more long term picture.
More long term picture. Greater clarity in understanding the growth of your Real Estate equity over time. Imagine if I extrapolate that out from late 2009 when our market began its accelerated growth!
And here is the interesting comment from the Toronto Real Estate Board's market analyst, Jason Mercer, in the June 1st update: “Market conditions are becoming tighter in the Greater Toronto Area and this will provide support for home prices as we move through the second half of 2018 and into 2019. There are emerging indicators pointing toward increased competition between buyers, which generally leads to stronger price growth. In the City of Toronto, for example, average selling prices were at or above average listing prices for all major home types in May.”
Makes one ponder if we are now at the bottom and prices could be on the rise. As one of our team commented recently, "If you are a buyer, this market is dreamy!" Well, that dream of home ownership may finally be here. Get it while you can!
As we have always advised, make your decisions in consultation with a Realtor you know and trust. And hopefully, that Realtor you know and trust will be one of our team! Now that's a real win-win!! We want to assist you in making the very best decisions. Not ones based on flashy headlines; rather on an examination of your specific goals and how best to achieve those for you and your family.
Enjoy this month's update and the beginning of summer.