Are Home Prices Finally Dropping In August for Toronto?
The only thing that seems to be stable at this time is the hot weather. Housing prices in Toronto and the GTA seem to be fluctuating this month. Since the implication of the ‘stress-test’, it has caused many first time homebuyers difficulties buying their homes – and for some even delay the process. However, statistics show that the implications of the stress test seem to be slightly fading in Toronto. The national housing sales rose to 1.9% in July, with reported highest increase in the GTA area. According to the Toronto Real Estate Board (TREB), there has been an 18% increase in the number of GTA home sales in July 2018 (in comparison to July 2017). This is an indicator of strong growth, and it is predicted to grow more in the month of August.
If you are looking to buy a house in Toronto for August, the average price is $796,107 which is down 6.9% from the month of July. This price is skewed as sales have shifted from higher priced houses to the the more affordable ranges; meaning people are buying more affordable housing. Furthermore, many houses are being sold for lesser than their predicted market value due to higher prices, and are averaging 22 days of a home being in the market. This is not good news for home sellers as there are more houses being left in the market competing for lesser number of buyers. Thus, in August you can expect a lower house value for detached houses.
For more in depth statistics about how many houses were sold:
- 3,848 listings were added in the last month (28 days)
- 2,302 homes were sold according to TREB
Or check out Zolo’s official report for the month of July for more numbers in Toronto and other cities in the Greater Toronto Area: https://www.zolo.ca/toronto-real-estate/trends
For a detached house in Toronto, you are looking at an average of $1.2 million dollars. Which is an one percent decrease from the past month. Overall, there is a minor price decrease on detached houses in Toronto, the least expensive being two bedroom house (avg. $855,000). In comparison to last year, 2018 seems a better time to invest in a detached house.
If you are looking to buy a townhouse, there is a decrease of listings that are being offered in Toronto, especially for two bedroom houses. Your best bet would be to find a townhouse with three bedrooms as there are more options available. Also, there is an increase of 14% of three bedroom townhouses that have been sold in the month of July. Where others have seen a decline of sales – a trend that is likely to follow into August.
When it comes to the average sale of a townhouse, there is a 2% drop in the average sale price to around $797k for the month of July. Townhouse prices are expected to go downwards into the month of August allowing homebuyers to possibly continue or start searching, and for sellers to avoid putting their house in the market as there have been a lower rate of townhouses entering the market.
For condo seekers, July has been a month that was in your favour! There is a surplus of condos that were put into the market last month, more specifically, 2,270 condos. Majority of those condos were three bedroom, while the least amount of condos were one bedroom apartments. However, the prices of these condos have seen an increase of 6%. A studio apartment in July was being sold for around $385,000 and a three bedroom was for $555,000. This is due to the demand of condos that is currently being requested in Toronto, as they are more suitable for the first time home buyers.
However, that being said, more people are looking to buy a house these days. “We have certainly experienced an increase in demand for ownership so far this summer. It appears that some people who initially moved to the sidelines due to the psychological impact of the Fair Housing Plan and changes to mortgage lending guidelines have re-entered the market. Home buyers in the GTA recognize that ownership housing is a quality long-term investment,” said Jason Mercer, TREB’s Director of Market Analysis.