Toronto, 9 September 2018. The 3rd quarter of 2018 ended much the same as it did in 2017 and in doing so also followed the trends of the previous 20 years.
The first month after the summer always shows a slight spike in prices, or rather a recovery from the slower months of June and July. Inventory was up marginally from 11 weeks to 13 weeks of supply, still a decidedly seller’s market. Yet, that is only if the sellers are following current market values and not the artificial prices witnessed in the first 4 months of 2017.
Of note, this September versus last year September, inventory is up +5.61%, unit sales are up +1.19% and prices are up +2.74%.
If you recall the prices in September 2017 were the same as they were in January 2017.
In general, although it appears that the Toronto Real Estate market is becoming more balanced, this is somewhat of an illusion as demand still exceeds supply in many neighbourhoods and price ranges. There is still a divide based on affordability with houses and condos under a million dollars still attracting multiple offers while those over a million taking much longer to sell so there is still some opportunity for negotiation.
Ask any buyer looking in the $600 - $800K range in central and north Toronto and they will say with exasperation that there is simply nothing available (or at the very least not in neighbourhoods that would be their first choice).
Affordability is still the issue and it is only because of the slight increases in mortgage rates and the qualification stress test fully implemented early in the year that has kept a lid on even greater price appreciation.
With no magic wand for immediate relief in supply, despite what politicians in election mode may suggest, living in your own Toronto home will be a financial challenge for some time to come. That is unless we see a spike in interest rates. So prices will come down but then your carrying costs go up. Affordability still remains the challenge. Yes, trends are going in the same direction, however, there are always opportunities for both buyers and sellers. You just may require some help in finding them. Let's start the conversation here .