September is here! We officially close the book on the summer season and move into the fall real estate market.
The Toronto Real Estate Board reported that there were 11,523 new listings added in August – which is a 6.7% decrease over last year. Active listings increased by 65% to 16,419 when compared to August 2016. This increase in listings is due to the backlog of inventory that occurred from the shift in April. The month over month results continues to provide a different outlook to the market’s direction. Reviewing the results of August and comparing them to July, active listings were down by 12% and new listings were down by 19%. This decrease in listings will be short lived as the expectation is that listings will increase In September and October.
GTA realtors sold 6,357 properties in August, a 34.8% decrease year over year, but a 7% increase over July of this year. Month over month increase in sales volume is showing how buyers are beginning to move from the sidelines and get into the “game”. Positive economic news coupled with the slower pace of price growth that we are now experiencing could prompt an improvement in the demand for homeownership.
The average price for all types of homes in the GTA was down by a modest 1.9% to $732,292 when compared to July 2017 where the average price was $746,218. The average selling price remains 3% higher over last year.
The time on market has continued to increase month over month. Currently, the average home is taking about 25 days to sell in the GTA. Communities such as Markham and Stouffville are seeing longer days on market (DOM), Markham – 28 days & Stouffville – 32 days. This lengthier time on market has given buyers ample time to select the home that best fits their needs.
What Does This All Mean?
Inventory is abundant and everything is on sale. We enter September with news of another interest rate hike of 0.25%. Yes, interest rates have gone up, but this increase has kept homes at affordable levels. However, recent news regarding the market has provided us with optimism. With signs of prices beginning to stabilize, the best time to buy a property is now. You can purchase a home for 20% cheaper than in the spring. The market is as healthy as it has been in years and both buyers and sellers can benefit from the real estate market. Get off the fence and go shopping!