09 Jul Market Update June 2018
**City of Toronto Real Estate Market Update**
This month’s (June) data release by the Toronto Real Estate Board was quite significant. It marked the first complete month in which comparative year over year (YoY) metrics were reflected in its reporting since the provincial government announced new regulations on April 20th 2017. Even though May 2018 reporting did account for these changes, the new rules enacted by the government weren’t completely digested by homebuyers and real estate investors in Toronto. As a result, June marks a significant reporting period where a comparative normalization has occurred. Our YoY comparative metrics will now display results that are consistent with the “new normal” – a reflection of the regulatory environment imposed on the Toronto real estate market by the provincial government.
Overall sales activity in the city of Toronto declined by only 1% YoY. All home types, except condominiums, experienced YoY single digit increases in sales volume in June. Sales of condo apartment units slowed by 6% YoY. Detached and semi-detached homes showed resilience going into the summer market by posting very strong month over month (MoM) gains (13% and 23%, respectively), however, condo units slowed by 9% on a MoM basis. There are signs that transaction volume in the house segment of the market is picking up, even as we head into the historically slower summer season.
Total YoY prices increased by 5%. The detached and attached row/townhouse home segments experienced modest declines (2% and 4%, respectively), while semi-detached houses and condominium units both displayed YoY price increases (1% and 10%, respectively). Although condo unit sales volume was down, YoY price gains bounced back into the double digits after experiencing two straight months with single digit increases.
I expect house prices to display modest price increases through the summer months. However, if inventory levels continue to decline, we should begin to see upward pressure on house prices. Prices of condo units should continue to move higher as demand has been quite resilient in this segment of the market.
Active listings were down 4% in the month of June and new listing inventory was quite light, down 17% for the month. Listing supply got tighter as we entered the summer season and there is no indication that an increase in listing supply is coming any time soon.
If June is any indication of the future, we are shaping up for a competitive summer on the home buying front. With inventory down and signs of increasing demand, there should be upward pressure on prices through July and August, traditionally slower volume months in Toronto’s real estate market.
If you’re looking to sell and want to know what your home is worth, or you’re a buyer looking to find a home in a neighbourhood of interest, just call, text or email me at any time. I would be pleased to help you with any of your real estate inquiries.
Keeping You Better Informed To Make Smart DecisionsTM
Mark Lebovits, Sales Representative
Royal LePage Real Estate Services Ltd., Brokerage
416-274-4984 | firstname.lastname@example.org