August 2017 Market Watch
For this month’s episode of Market Watch we will be talking about what the August market looked like. The Toronto Real Estate Board (TREB) released their market watch report for the last month and we’re going to discuss the numbers.
We’re through most of 2017, and we’ve witnessed quite a few fluctuations in the market. The number of new listings are down by roughly 7% in the year-by-year comparison as seen on TREB. However the number of active listings have increased by 65% compared to August 2016. As you can probably tell, the number of active listings are affecting sellers, as new listings are not coming into the market. Seeing as homes are not selling as fast as sellers would hope.
As shown in the graph above, August sales have dropped roughly 35% (vs. August 2016), climbing to reach the 2013 rate.
Since sales have slowed down it’s no surprise the price is lower than what it has been for the last few months. In the first few months of 2017 we saw the average home price steeply increase month by month, however the last few months have not been following the same pattern. As of August 2017 the average price sits at $732,292 which is not a vast difference from June 2017’s $746,218. However in the year-by-year comparison August 2017’s price is 3% higher than that of 2016.
Overall sales has reduced for all types of homes. However condos have maintained their increased value throughout the year, whilst detached homes have come down to the prices of last year. If you’re thinking of up-sizing to a detached, now is the time.
For those who are unaware or need a refresher as to what months of inventory are, it refers to the time it would take to sell all current listings with no new listings being added. In this market keeping track of the months of inventory is as important as the price. As seen in the graph above, the average inventory for the GTA area for August 2017 has reduced since July 2017, almost reaching the 2013 inventory.
As mentioned before the reductions in new listings between July 2017 and August 2017 mean sellers are eyeing the load of active listings which aren’t moving steadily. According to TREB if more buyers move into the market looking to acquire home ownership then the current balance we’re seeing will be skewed with the increase in pricing. Many potential buyers are staying in their seats to see how the market will play out, whilst examining the pre-existing pile of listings.
The average day on market (DOM) for the City of Mississauga is 24 days while the City of Toronto now sits at 23 days. Both cities are stocked with 2.58 months of inventory.
This is why it is so important to choose the right agent; Sellers must choose someone who can provide guidance in the current situation and understands what their expectations from this transaction. Buyers must find someone who can advise them, and knows when to push and when to hold back.
Steven Ho is the ideal realtor for any client, and here’s why: In a townhouse complex, Steven sold 30% of the 9 listings available, whilst 6 separate agents sold the remaining 6 listings. The average DOM for the 6 listings was 14 days, whilst for Steven’s listings the average DOM was only 9 days.
In terms of sold prices, the 6 other agents sold for roughly $489,000 while Steven Ho sold for $533,000, a difference of $44,000! A significant margin that is potentially lost with other realtors which could go to the payment of your next home. Here’s another reason to go with Steven: The other agents sold their listings for 102% of the asking price, which is a fair amount to gain no doubt. However Steven outperformed the other agents once again by selling his listings for 106% of the asking price. An additional 4% on a $500,000 home is $20,000!
People think all agents are the same, but different agents yield different results; picking Steven Ho will help you get the best results.
Source: All statistics are taken from the Toronto Real Estate Board 2017.