Buyers May Want to Act Now While the Sun is Still Shining.
It’s no time for fence sitting. Buyers waiting for their moment in the sun should act while it’s still shining, say pundits.
July 2017 results released by the Toronto Real Estate Board (TREB) shows a comfortable 5% increase in the average price of a home in the GTA to $746,218.
July home sales, however, declined dramatically by 40.4 % year over year to 5,921, while new listings continue to level off, increasing by only 5.1% in July compared to a 48.9% jump in May and June’s 15.9% increase.
Condominium apartments showed the greatest resilience: While condo sales declined by 28.3% in 416 and 36.5% in 905, the percentage of decline was far less than for other home types. Meanwhile condo prices increased by 24.6% in Toronto (to $532,502) and 16.6% in the rest of the GTA (to $418,191.) This compares to overall price increases of only 5.2% for semi-detached homes (to $704,207) and 4.9% for detached homes (to $1,000,336).
According to some industry watchers, the market cooling may be a blip. Whether it is a blip – and how long it will last – is unknown. However, the future state of interest rates will certainly factor in.
Says TREB President, Tim Syrianos: “Clearly the year-over-year decline we experienced in July had more to do with psychology, with would-be home buyers on the sidelines waiting to see how market conditions evolve.”
The takeaway may be: Act soon!
Currently Resilient Condo Market May Not Last Forever.
Showing resilience in the face of dramatic changes, the condominium apartment market is weathering the cooling housing market with relative aplomb.
July 2017 housing market statistics released by the Toronto Real Estate Board (TREB) showed a remarkable 40.4% decline in sales year over year (to 5,921 from 9,929 for the same period in 2016.) The average sale price increased by only 5.0% to $746,218, and new listings continued a downward trend, increasing by only 5.1% over July 2016 figures.
Overall condo sales, however, declined by much less than other housing types – 30.7% to 1,840. This represented a drop of 28.3% to 1,345 in Toronto and 36.5% to 495 in 905, and compares to an overall decline of 47.4% for detached homes (to 2,434) and 38.6% for semi-detached properties (to 583).
Meanwhile condo prices showed stronger price growth than other property types, increasing by more than 24.6% in Toronto (to $532,502) and 16.6% in the GTA (to $418,191.) By comparison, the average overall price of a detached home increased by 4.9% to $1,000,336, and 5.2% to $704,207 for a semi-detached property.
Market watchers suggest that would-be buyers are adopting a wait-and-see attitude. Whether the decline is a blip or the new market reality remains to be seen. However, condo buyers and sellers should consider hopping off the fence soon. Should another unknown – interest rates – increase again, the market might turn positively frigid.
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