Image Source: MoveSmartly (a great Blog, worth looking at regularly).
Throughout the year, Toronto’s real estate market has been lacking inventory. August was especially disturbing; in August Toronto was down to less than one month of inventory. To put that in perspective, Toronto has averaged 2.27 months of inventory in August of 2013 – 2015. Active Listings were down over 40% from August of last year.
Meanwhile, the number of sales this August increased 23% over August 2015. Substantially smaller inventory, significant increase in the number of sales…obviously, there’s an increase in the average price. Are you sitting down? According to TREB, the average selling price for all home types across Toronto increased 17.7% on an annual basis. Thinking of selling? Now is a great time - call us, we'd love to help!
A few questions:
- Why are less houses on the market when the price is at historic highs?
- Are there not enough 'down-sizers' to meet new demand?
- Are Baby-boomers holding on to their houses so their off-spring can get a place in the city?
According to Jason Mercer, TREB’s Director of Market Analysis:
"Population in the GTA continues to grow. The resulting growth in households coupled with favourable economic conditions and low borrowing costs means that we remain on track for another record year for home sales. Against this backdrop, TREB will also be releasing new third-party research, and consumer and REALTOR® survey results throughout the fall and winter, with discussions focusing on foreign buying activity and issues affecting the supply of ownership housing,"
Discussion and studies are helpful, but less effective when the necessary data is not analyzed because it isn’t collected. In the interim, I espouse further tightening of credit restrictions and the adoption of a foreign buyers’ tax. You can’t make people sell, but you can be a lot more careful about who gets a mortgage and who takes the risk when a mortgage is provided.
If you're thinking of selling, now is a great time! Give us a call...we'd love to help you.