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News 9 months ago

Toronto Real Estate: July Market Update

Finding Balance

For market watchers in the GTA, keeping up with the current state of affairs can feel akin to being at a tennis match. Things are looking up – wait a minute, no they’re not. With so many variables at play, including seasonal shifts, anticipation over interest rates and countless pundits weighing in on the economy in general, gaining a sound understanding of current market conditions can feel overwhelming. If pressed to define the current real estate market, it can be summed up much like a relationship status from a decade ago: it’s complicated.


Glass Half-Empty Or Full?

Whether you view current conditions from a glass-half-full or half-empty perspective really depends on what you’re looking at. TRREB recently released its July report and while there have been some downward trends since the month prior, the year-over-year data for Central Toronto is quite positive with the number of sales up 2.23%, new listings increasing by 25% and Days on Market decreasing across the board. The month-over-month declines on the other hand are in fact typical of summertime when activity tends to cool off. This year, however, the slowdown occurred a little earlier and was slightly more pronounced than what is typical, likely due to anticipation around the July interest rate announcement.  

There is also variation among inventory categories. The semi-detached houses in Central Toronto experienced a decrease in the number of sales and a modest dip in prices, whereas detached properties saw an uptick of 8% in the number of sales (from 118 in July of 2022, to 127 in July of this year) and experienced a robust average price increase of 18.40% (going from $2,108,989 to $2,497,272) for the same periods. Condos, too, saw appreciation in the number of sales and in pricing, and spent less time on the market than at the same time last year.  

 

Proceeding With Caution

What does it all mean? For the most part, the year-over-year increases indicate that buyers and sellers have adjusted to the new landscape. Buyers have returned to the market after adapting to the higher cost of borrowing and sellers have adjusted their expectations to the current climate. People are proceeding… with caution. First-time buyers are still waiting with bated breath to see what the Bank of Canada will do next in an ongoing effort to combat inflation (the next announcement will occur on September 6th) and those who recent increases have most impacted may leave the market, which could lead to increased inventory for a period.  

The important takeaway during this period of ever-evolving conditions is that the Toronto market performs differently from any other in the country; and, in fact, it is home to numerous micro markets within its sprawling borders – each with its own unique conditions. Central Toronto remains an active market with limited inventory. As the city’s population continues to grow at a rapid pace, the strength of Central Toronto real estate as an investment is poised to sustain any volatility that may occur.    

 

Align Yourself With Experts

Expect the ebb and flow to continue as the economy in its entirely predictable way continues to seek balance. It is a dance of supply and demand, and a highly nuanced one at that. The best way to navigate such conditions is to find a dance partner who is an expert at leading. 

 

At a time when strategic pricing is key and the ability to anticipate the next wave of economic variables matters most, it is crucial to align yourself with experienced professionals who are seasoned at navigating such dynamic conditions. The Heaps Estrin Team has a combined 175 years in the industry, has experienced every conceivable iteration of market conditions and is well-versed at steering clients through them to achieve the best possible outcomes whether buying, selling, or investing. 

If you have questions about your home, your neighbourhood, or how the market is behaving and what to expect next, we would love to hear from you. 

 

Central Toronto July 2023 Real Estate Stats

Detached:

Year Over Year (YOY) Change:

Number of Sales: 118 (2022), 127 (2023), 8% increase

Average Sale Price: $2,108,989 (2022), $2,497,273 (2023), 18.40% increase

Sale to List Ratio: 98% (2022), 100% (2023)

Average Days on Market (DOM): 19 (2022), 18 (2023), -5% decrease

 

Semi-Detached:

YOY Change:

Number of Sales: 58 (2022), 46 (2023), -21% decrease

Average Sale Price: $1,505,280 (2022), $1,477,500 (2023), -2% decrease

Sale to List Ratio: 98% (2022), 103% (2023)

Average DOM: 18 (2022), 15 (2023), -17% decrease

Condo Apartment:

YOY Change:

Number of Sales: 639 (2022), 669 (2023), 5% increase

Average Sale Price: $794,087 (2022), $805,296 (2023), 1% increase

Sale to List Ratio: 99% (2022), 100% (2023)

Average DOM: 23 (2022), 20 (2023), -13% decrease

TOTAL:

YOY Change:

Sales: 894 (2022), 914 (2023), 2.23% increase

New Listings: 2,169 (2022), 2,714 (2023), 25.00% increase

Active Listings: 3,223 (2022), 3,540 (2023), 9.80% increase

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