Some interesting facts about the real estate market activity in July:
Number of homes for sale: 15,334
Number of homes sold: 4,912
Average number of homes available for a buyer to see: 3.12 (Seller’s Market)
Average List Price to Sale price: 99%
Average Days on Market: 16
Average Price Increase from 2021: 13.2%
So how do we interpret this data? First of all, there is a market. Almost 5000 homes sold, not as much as we’d like to see, but the fact is buyers are buying homes in the GTA. The number of homes available for sale is very low. It is a seller’s market and the proof of that is that when a house is priced right it sells very quickly, almost at full asking price, that also indicates that multiple offers are still taking place. The average price is up from 2021. Prices are down from the huge increases we had at the start of the year but the market is adjusting.
The 4 factors necessary in maximizing a home’s sale price are: 1. A strategic pricing plan, 2. follow-up and promotion to other Realtors, 3. An aggressive marketing plan, 4. Experienced negotiation. A house does sell itself, but the price one gets is dependent on the success of the above 4 factors.
The fundamentals of Toronto’s economy haven’t changed. Unemployment is low, immigration continues to be high, rental rates are increasing due to demand and a lack of supply, exactly what has caused the sharp increase in home prices! Shortages of homes available for sale and rent will not change in the near future without some massive changes of government policies.
The start of August is seeing a reduction in fuel prices, welcome relief to all Canadians! Hopefully as inflation slows down, interest rates will decrease, and bring back more affordable borrowing rates to the many people who are waiting on the sidelines to purchase their first home.
While no one can predict the future, I believe this is a great time to either purchase a bigger home or purchase an investment property. I don’t know how long this adjustment in sharp price increases will continue, but I know that once public confidence will be restored, prices will continue to increase quickly again.
Call me, let's chat, after all, you have a friend in the business!
Have a great August!
PS if you know of someone who's thinking of buying or selling, please let me know. I'll be happy to reach out to them and make sure I take extra special care of them.