Sales were up 8.5% for August compared to last year with 6,839 houses and condominiums changing hands in all the districts. This was the 2nd lowest number of sales for the month since August 2012.
Condo townhouse and high-rise suites took a significant 37.1% share of the market with 2,540 units being sold.
The August average sale price for all GTA homes came in at $765,270 – this was a modest 4.7% increase from one year ago. Considering that May/June/July 2017 was the turning point in last year’s crazy market, if instead you compare 2018 with August 2016 (with an average of $710,975), this year’s average was still up 7.6% 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 August compared to historical numbers was up just 6% but increased by 8.8% 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 August that ratio finished at 38.3% - almost exactly the same as 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 27 days, two days longer than in July.
Here’s a summary of the significant real estate milestones for Toronto in August 2018… a typical summer market overall with the usual lower sales and dip in the average selling price.
- 2nd lowest August sales since 2012 (6,839)
- The ratio of sales-to-listings increased slightly to 38.3% in August – Now in a moderate seller market territory
- The average sale price came in at $765,270– which was up 4.7% compared to August 2017 – Remember last year the new Ontario government rules came into effect on April 20th which really influenced the late spring and summer markets last year
- Note that this average was still over 7.6% higher than 2 years ago in August 2016
- Overall sales in the month were up 8.5% from one year ago
- The GTA real estate market overall averaged the days-on-market at 27 – a more normal level for Toronto’s summer months
- Detached home sales in August 2018 with a purchase price over $2,000,000 were up 18% from last year
- It’s noticeable that first-time buyer aspirations are now shifting to a condominium lifestyle – CONDO sales took a 37.1% share of the total market
- Downtown condo active listing numbers were lower in C01 and C08 by 8-10% from last year at this time
- The downtown condo days-on-market average was 18-22 days – significantly faster than the overall market
- The ratio of sales-to-listings for condos downtown were identical at 72% in both C01 and 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 $65,000 from August 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 into 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 August 2018 Market Report details.
Here's the complete text version of the August 2018 Toronto Real Estate Market Report to read.
Keep Up To Date With Toronto's Real Estate Market
Every month we communicate with our readers to give them accurate insights and statistics about what's happening in the Toronto and GTA real estate markets.
Subscribe to our free monthly FYI Newsletter HERE.