25 Aug Weekly Market Notes: More inventory compared to last year.
Heading into the fall market, it appears we will have slightly more freehold inventory for sale compared to last year.
Freehold property is defined as detached, semi-detached and attached houses. So far this August, listings of semi-detached and detached homes in Toronto are up 13% and 15% respectively.
Detached homes are being listed and sold at the same rate as they were last year, but sales of semi-detached homes have dropped off by 23% compared to last year. These are mid-month statistics, so the timeframe is short and the numbers are easily affected, but the stats also reflect what I am personally seeing in the market.
I would also add that the drop in sales of semi-detached homes correlates with unrealistic pricing by some homeowners or investors. In previous years, it was easier for an investor, flipper, or homeowner to overprice a property and let the market eventually come to them. In a rising interest rate environment it will take longer and as such, is riskier.
Interestingly the condo market, which was rising last summer while the freehold market was dropping, is currently as tight as it was last year. Toronto Condos are being listed and sold just as quickly as they were last August, with an almost identical amount the new listings and sales.
Have a great weekend!
-Nick, Friday, Aug 24/2018