Back to school in September always feels like the beginning of a new year for real estate. We are all prepping and preparing for the Fall Market. So many predictions are made but time will tell us how it will all unfold. The Toronto Real Estate Board stats came out the other day and the average cost of a home in August was $732,292 up by three percent compared to August 2016.The number of new listings entered into the MLS system was down by 6.7% year-over-year. Home sales in August were down 34.8%. While we might be seeing clouds forming on the horizon, summer real estate numbers aren't always the best indicators of where the market is going.
While the price of detached homes remained unchanged this August compared to last, semi-detached home prices are still up 12.1 percent and the average condominium price has increased 21.4 per cent since August 2016 for an average price of $507,841. The real estate market has the benefit of a strong GDP growth, low interest rates and unemployment. The latest interest hike increase may also spur sales as potential buyers decide to act now to lock in a mortgage rate if they believe more rate increases may be coming.
All these statistics represent the GTA and fail to target the specific statistics in each individual neighbourhood. Our market is very diverse and the numbers of one area are not necessarily reflective of the market as a whole. House hunters still prefer to take their time, but we are seeing a notable increase in confidence after the craziness that set in late spring. It’s too soon to know if the rate hike will change buyer psychology because many opt for five-year fixed terms on their mortgages. The first week after Labour day weekend usually brings a spike in listings so let’s see if that stands true this year!