Toronto Market August 2015 (Up, Down or Sideways?)
This is always an interesting question and perhaps the most frequently asked of real estate agents at summer barbeques: “what’s happening with the market”.
Let’s have a look at the most recent report from the Toronto Real Estate Board. What do they say?
Here’s the report:
“Sales and Average Price Up in August
TORONTO, September 4, 2015 – Toronto Real Estate Board President Mark McLean announced that Greater Toronto Area REALTORS® reported 7,998 residential transactions through the TREB MLS® System in August 2015.
This result represented a 5.7 per cent increase compared to 7,568 sales reported in August 2014. On a GTA-wide basis, sales were up for all major home types.
The annual growth rate in new listings was greater than the annual growth rate in sales, but active listings at the end of August were still down compared to last year. This suggests that sellers’ market conditions remained in place, especially where low-rise home types like singles, semis and townhouses were concerned.
“Buyers in the GTA remain confident in their ability to purchase and pay for a home over the long term. They see ownership housing as a quality investment that has historically produced positive returns while at the same time providing owners with a place to live in their chosen community,” said Mr. McLean.
Both the MLS® Home Price Index (HPI) Composite Benchmark and the average selling price for all home types combined were up substantially in August compared to the same period in 2014, with both increasing by approximately 10 per cent year-over-year.
“A record year for home sales continued to unfold in August as competition between buyers exerted upward pressure on selling prices. It was encouraging to see annual growth in new listings outstrip annual growth in sales, but we will need to see this for a number of months before market conditions become more balanced," said Jason Mercer, TREB's Director of Market Analysis.”
That was the commentary. You will notice that the comparison are all to last year, that is, what happened in August 2014 (to the extent that that would be relevant). Hopefully, you were not interested in anything more current. Well, at least they are not going back a decade. That would just be the radio ads that you hear.
They say price growth of 10% across all home types over the one year period. That’s good!
But, what’s really happening this year. Let’s look at the 2015 monthly numbers.
2015 Average Sales Price for a Single Family Home in the GTA
Year to Date
These numbers would tell a slightly different story. Here, the market peaked in May for single family homes in the GTA and has dropped steadily every month. But, I suppose that’s another story.
More recently, we have had some mixed news:
- Home ownership incentives promised by politicians in the Federal election campaign,
- Bank of Canada confirmation of low interest rates for foreseeable future,
- An official recession as documented by StatsCan,
- Stock Market depression in prices, currently 1,935 points off its 52 week high,
- Steady and consistent progression for real estate performance.
There will always be “good news and bad news”. Real estate has always been a consistent performer. It’s not a question of timing the purchase, it’s really a decision to invest and then working towards that goal.
If you need any help with this in the GTA, please give me a call.
Brian Madigan LL.B., Broker