Sales were down 35% for August compared to last year with 6,357 houses and condominiums changing hands in all the districts. Although it’s common for the market to dip lower in the summer months, this was extreme… the lowest sales for an August since 2010.
Condo townhouse and high-rise suites took a bigger 39.4% share of the market with 2,505 units being sold.
The August average sale price for all GTA homes came in at $732,292 – a mere 3% higher than last year.
If you consider the year-to-date average compared to last year however, the market is still up 17% which shows that not all those gains in price during the insane spring have been lost.
The active listing inventory is one of the strongest indicators of how smooth or outrageous the market has been. The inventory average for the month of August compared to historical numbers was just about even but up a big 65% from last year at this time.
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 38.7% - compared to 98% last year and down from March’s 154%. We’re now just in a ‘barely above neutral’ slight seller market territory so owners with their homes on the market may need to adjust their expectations if they want their home sold.
The days-on-market average for Toronto homes was 25 days, 4 days slower than July.
August Stats At A Glance
Here's a 'talking points' summary of what's happened...
* Lowest number of overall sales for the month of August since 2010 (6,357) although they were up from July
* The ratio of sales-to-listings bumped up from July’s 31.6% to 38.7% in August – a very moderate seller’s market
* The average sale price dropped back to $732,292 – still up 17% YTD compared to 2016 – because of higher sales of lower priced condos
* 3.0% average sale price increase from August 2016 (traditionally we’ve seen an average annual appreciation of 6.8% over the last 20 years)
* Sales in the month were down 35% from one year ago
* The GTA real estate market overall averaged the days-on-market at 25 – still quick compared to many markets
* First-time buyer aspirations now shifting to a condominium lifestyle – CONDO sales took a ‘highest ever’ 39.4% of the total market in August… about 3% more than average
* Downtown condo listings were lower by 15-26% from last year at this time
* The days-on-market average was 22 days
* The ratio of sales-to-listings for condos downtown ranged between 74% in C01 to 91% in C08 indicating a strong seller’s market… well ahead of the rest of the GTA
* The average sale price for downtown condominium suites is up by roughly $120,000 from 2016
* Building on this higher demand due to better affordability, condo appreciation in the two main downtown markets averaged 25% year-over-year
* Markets in York Region and other 905 neighbourhoods have suffered the most from the market slowdown – every district is now showing that they’re in ‘buyer market’ territory
* Overall, it’s a perfect opportunity now, with the increased inventory, for a buyer to find a home they fall in love with AND negotiate with the seller one-on-one in many cases to come to a mutual agreement.
Watch the video to get the complete August 2017 Market Report details.
Here's the complete text version of the August 2017 Toronto Real Estate Market Report to read.