Toronto June Market Report: More Choices for Buyers

Toronto June Market Report: More Choices for Buyers
Photo by Patrick Tomasso, July, 2019

TREB Realtors reported 8,860 sales through TREB’s MLS® System in June 2019 which makes for 10.4 per cent increase in the year-over-year comparison.

Detached homes recorded 18.6 per cent increase in June, semi-detached homes landed on a 9.4 per cent and townhouses on a 12 per cent increase. The only decrease in sales was reported in the condominium segment. The fall was 3.2 per cent.

Average price had a slight surge this month, rising by 3 per cent across all segments. The total average price for June 2019 was $832,703. as an average price. Semi-detached homes, townhouses and condos went up by 5.3, 3.9 and 5.2 per cent respectively. Following the trend of one segment in negative numbers, while the others are rising, the average price for detached homes was down by 1.4 per cent. The total average price for detached homes was $1,018,987

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There wasn’t much change on the listings front. New listings were down by 0.4 per cent, which certainly doesn’t make a case for concern. Active listings were down by 5.7 per cent.

Erin Haas, Sales Representative

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Looking at the June TREB market stats, it’s clear to see that sales activity in the GTA for detached, semi-detached, and townhouses have increased as more and more condo developments come to market. The proof that there will always be a need and want for more space in the city is proving to remain for most buyers today. Sales activity for detached homes is up 13.6% from last year with an average price of $1,332,639, which is down from last year by about 1.6%. So, it appears that even though there is limited inventory in the detached homes market, buyers are still finding opportunities to get involved in purchasing a detached home in the GTA. Condo sales are down by about 5.6%, but the average price is up by 5.1% sitting at an average of $636,606. The decrease in condo sales activity is most likely due to the increase in inventory of new developments that have recently come to market. The size of condo units are decreasing, as developers are aiming to increase the amount of units within each development, maximizing their profit margins. Buyers are not pleased about this new wave of “micro-living”, but as cost of living becomes more expensive in the city, some are left with limited options, as detached and semi-detached inventory becomes less available to most people. Moving forward, we will continue to see new condo developments coming to market, but, we will also see the ever-growing desire for more living space. Buyers will continue to determine the pulse of today’s real estate market.

Geoff Joyner, Sales Representative

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The increased sales volume experienced in June was driven by detached, semi-detached and townhomes and took over from condominiums which levelled off versus year ago when condo sales were surging. Prices have continued to inch up for semi’s and condominiums while detached home prices have continued their trend of softening. This trend is opening an opportunity for condo and semi-detached owners to buy up to a detached house as the price spreads between the housing types narrows.
Active listings decreased as sellers who are not seeing the prices they hoped for, are taking their properties off the market or are choosing to stay where they are and possibly consider a renovation.
In the Danforth Village – East York neighbourhood, first time buyer homes listed under $1million are starting to not always sell on offer night and are then re-listed at a higher price – closer to where the sellers hoped to sell in the first place. This suggests buyers are beginning to tire of competing on offer night and would rather negotiate from a price that represents fair market value. Inventory could improve as we enter the Summer market and buyers go on holiday and listings accumulate. There may be some choice for buyers to consider!

Jim Burtnick, Broker, SVP-Sales

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We are now seeing Buyers feeling more and more comfortable that the bottom will not be falling out of the housing market. Buyers have been cautious starting the year off to see that prices are not decreasing. Now, these Buyers are indeed seeing moderate price appreciation and are becoming more and more confident that investing in residential real estate is a safe harbour, especially if you need a primary residence. So sales are increasing although with limited inventory (listings). Buyers are taking their time and not being rushed to make a quick decision on what will likely be the biggest investment of their lives. This is a healthy, balanced and prudent consumer acting in a rational manner. This bodes well for the overall market.

Sellers too are now adjusting to this new reality and are beginning to recognize that in order to sell their home for top dollar, it must be priced right (not too high and not too low), it must show very well (especially over their competitors on the MLS) and that they must be patient in the sales cycle which is longer than it has been in recent memory.
All in all, we are gaining traction with both Buyers and Sellers adjusting to a slower growth marketplace.

Phil Taylor, Sales Representative

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The June Market Report speaks volume to increased consumer confidence in Toronto’s real estate market. More buyers are moving from the sidelines after digesting the possibilities of rate hikes, and into the higher density market segments (semi-detached houses, townhouses and condominiums). With new listing volume essentially remaining flat, the inventory levels are tightening which has resulted in a modest 3% increase in average selling price on a year over year basis. Being focused and creative in order to achieve the best results for our clients within this tight market is only possible when you’ve got a strong team working with you. I look forward to the continued momentum and strong second half of 2019.

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