06 Jul Levelling off of the market is a good sign for people seeking value
June’s sales statistics came out this week and for the first time this year, the interpretation of the numbers has been positive. This resulted in media outlets reporting about how Toronto’s real estate market has finally turned a corner. When in fact, prices in the 416 have been steadily increasing since the new year.
The reason for the positive outlook is because year-over-year statistics are now being compared to June 2017. At this time last year the market had slowed down and was feeling the full effect of the non-resident tax, hence the more favourable statistics year-over-year.
Looking at month-over-month figures, the average sale price of detached, semi-detached, and attached freehold homes in the 416 actually declined for the first time this year in June. The average price of a condo continued to climb, if only slightly. In the 905, the average price of a house was basically flat month-over-month, while condos declined.
As we move into summer vacation, the levelling off of the market is a good sign for people seeking value. I am optimistic the positive commentary may give homeowners more confidence to sell and open up some inventory downtown. In addition, an interest rate hike next week may slow the rising march of prices further, creating a more stable environment.