Sales were up 19% for July compared to last year with 6,961 houses and condominiums changing hands in all the districts. This was the 2nd lowest number of sales for the month since July 2010.
Condo townhouse and high-rise suites took a significant 36.3% share of the market with 2,537 units being sold.
The July average sale price for all GTA homes came in at $782,129 – this was a modest 4.9% increase from one year ago. Considering that May/June 2017 was the turning point in last year’s crazy market, if instead you compare 2018 with 2016 (with an average of $710,500), this year’s average was still up 10.1% in that 2-year period.
The active listing inventory is one of the strongest indicators of how slow or fast the market has been moving. The inventory average for the month of July compared to historical numbers was up just 7.8% but increased by just 5.2% from last year at this time.
However, this is occurring selectively with the ‘central core’ Toronto neighbourhoods still doing very well while the outer regions (Peel, York & Durham) are not seeing the same level of activity.
The sales-to-listings OR percent-chance-of-selling ratio is how we determine what type of market we’re actually in. 24-28% is a neutral market, below 24% is a buyer’s market and above 28% is a seller’s market.
In July that ratio finished at 35.3% compared to an 31.3% last year. The GTA is now into a very moderate seller market territory so sellers may need to adjust their expectations if they want to make a move.
The days-on-market average for Toronto homes was 25 days, four days longer than in June.
Here’s a summary of the significant real estate milestones for Toronto in July 2018… the market is showing a slow recovery from the double shocks of tighter lending criteria and an increase in mortgage rates.
- 2nd lowest July sales since 2010 (6,564)
- The ratio of sales-to-listings dropped slightly to 35.3% in July – Now in a moderate seller market territory
- The average sale price came in at $782,129– which was up 4.9% compared to July 2017 – Remember last year the new Ontario government rules came into effect on April 20th which really influenced the late spring market last year
- Note that this average was still over 10% higher than 2 years ago in July 2016
- Overall sales in the month were up 18.6% from one year ago
- The GTA real estate market overall averaged the days-on-market at 25 – a more normal level for Toronto’s summer months
- Detached home sales in July 2018 with a purchase price over $2,000,000 were down 60% from last year
- It’s noticeable that first-time buyer aspirations are now shifting to a condominium lifestyle – CONDO sales took a 36.3% share of the total market
- Downtown condo active listing numbers were lower in C01 and C08 by 15% from last year at this time
- The downtown condo days-on-market average was 17-20 days – significantly faster than the overall market
- The ratio of sales-to-listings for condos downtown ranged between 65% in C01 to 61% in C08 indicating an extremely strong seller’s market… close to double the GTA overall.
- The average sale price for downtown condominium suites is up by roughly $70,000 from July 2017
- Building on this higher demand due to better affordability, condo appreciation in the two main downtown markets averaged 11-13% year-over-year
- Markets in York Region and other 905 neighbourhoods have suffered the most from the market slowdown – York Region is now showing that they’re in ‘buyer market’ territory
- Expect inventory and sales increases as we move towards the fall market - buyers should watch for more opportunities to get the condo or house of their dreams.
Watch the video to get the complete July 2018 Market Report details.
Here's the complete text version of the July 2018 Toronto Real Estate Market Report to read.
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