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June 2017 Market Watch

 

For this month’s episode of Market Watch we will be talking about what the June market looked like. The Toronto Real Estate Board (TREB) released their market watch report for last month, and we’re keeping up at the halfway mark.

 

We’ve come halfway through the year and the 2017 market has taken unexpected turns. The number of new listings we’re seeing are up by 15.9% in the year-by-year comparison as seen on TREB. A more moderate rate of growth as opposed to what we saw in May.

As shown in the graph above, June has dropped lower in sales with 37.3%, now reaching the sales percentage rate of 2013. In terms of pricing, the decline (in comparison to last month) is still in effect. In the past few months we’ve seen the average price for a home steeply increase month by month, but the past two months are showing a steady decline. For June 2017 the average price sits at  $793,915 , a little less than $70,000 decrease.  This price is still 6.3% higher than the same time last year, but will it reach a lower point in the year-by-year comparison?

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. As seen in the graph above, the average inventory for the GTA area for June 2017 has increased by 0.1 months since May.

 

The increase in supply, is a result of the government policy changes that are soon to be in effect. Many potential buyers are staying their seats to see how the Ontario Fair Housing Plan will affect the real estate market. BUt at the same time, sellers are listing their homes in order to gain advantage of the peaked price from a few months ago.

 

The average day on market (DOM) for both the City of Mississauga and the City of Toronto now sits at 15 days. The former is stocked with 1.1 months of inventory while the latter has an increase of 1.2 months of inventory. Properties of both areas are experiencing a longer duration on the market, as expected from the increase in supply.

 

As of June more listings to pick from, and with the decrease in pricing there’s more to grab within your budget. However sellers may still be trying to achieve prices we’ve seen a few months ago, however with highers days on the market negotiations will be crucial.

 

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.

 

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