Another busy month of sales as the Toronto Real Estate Board reported the sale of 9,390 homes in July, one of the busiest Julys on record.
Multiple offers continued to be the norm for well-priced properties as the shortage of homes available for sale has not eased. With only 12,551 new properties coming on the market in July, it remains a Seller’s market as there is less than 11/2 months of inventory of homes for sale.
The average price of a home on the Toronto Real Estate Board is now $1,074,113, up 15.5 % since the start of the year, with area code 416 condos slower to recover post Covid fears at 4.6%.
There hasn’t been much change in the basics of the real estate market. Demand for home ownership continues to be high and immigration will continue to eat up homes as they come up for sale or rent. As students return to our colleges and universities, and as tourism increases, condominiums will be taken out of the long-term rental market into more seasonal rentals. These factors will create demand for 416 area condominiums and I anticipate those prices will increase at a much faster pace than they have in the last 12 months.
Some analysts are pointing out the fact that the pace of sales of has slowed over the summer, pointing to a more relaxed market. What we are seeing is a lack of inventory! Appointments to see houses continue to be high, the number of buyers looking for homes is still one of the highest compared to previous years, the only problem is lack of inventory. Buyers want to buy but due to limited availability, can’t find the right home to meet their requirements. If there would be more homes available for sale, there would be more sales!
As the summer wains to a close, I expect to see more buyers getting back into the market and a return to the more frenzied market we had in the spring.
Whether it’s to buy a bigger home or an investment condominium, now is a great time to invest in real estate. If you’re looking to discuss it further, or just have some questions about the real estate market, give me a call. After all, you have a friend in real estate!
Have a great August!
Mark and Keith