Another great month of sales as Toronto realtors sold 11,106 homes at an average price of $1,089 536. While a lot of statistics are being bandied about such as, "Average price is up 28% over the same time as last year", these numbers are really not relevant due to the impact of COVID-19 in 2020.
The numbers that are important are the following:
• The average price in the GTA is now $1,075,636 up 15.7% since January 1.
• There were 11,106 homes sold in June.
• There were 11,297 properties for sale as of June 30th.
• The average property sold in 17 days in June vs 14 days in April.
From the above information we can draw the following conclusions:
• Prices in Toronto are increasing at a significant rate, much higher than the historical average of 6.6% (since 1972).
• There is only 1 month of homes available for sale, which continues the Seller’s market creating multiple offers quick sales and rising prices.
• The average days a property is on the market is up by 3 days, indicating buyers are taking a little more time before purchasing.
Buyer exhaustion has certainly impacted the real estate market. Buyers got tired of the home buying process, getting frustrated and disappointed after being unable to purchase a home due to the bidding wars. Adding to that is the summer weather and relaxation of COVID restrictions. This has all led buyers to take a rest from the real estate market.
HOWEVER….. none of the major factors that created a frenetic market in the Spring and the consequent rise in real estate values have changed. Immigration, ultra-low mortgage rates, limited availability of homes for sale and a strong demand for home ownership, continue.
There is no doubt in my mind that by August/ September the market will continue the strong pace we had in the Spring. I believe the next two months will represent the best opportunity to upgrade your home or to purchase an investment property.
If you’re thinking of buying or selling give me a call, let me help you secure the best future for you and your family.
Have a great July