With 5,627 homes sold, August marked a slight increase over July in terms of number of homes sold as well as for the average sale price. The average sale price YTD is now at $1,224,216, compared to 2021’s average price of $1 095,339.
Please don’t expect prices to start to rise again. What August’s data shows is that the real estate market is active with sales and purchases taking place. While listings remain in short supply, buyers show continued willingness to purchase at today’s market prices. Overpriced listings are soon exposed by today’s savvier buyer and those listings will languish.
As always there are areas of strength and weakness in the market. Condominium sales in the 416-area code have strengthened as overall demand has increased due to the higher price points for detached homes and the fact that rents have increased significantly over the last year. Renovated suites in older buildings are typically larger and are selling at significant premiums over those that are unrenovated. Also 905 detached home prices have softened in the outlying areas, but the challenge for first time buyers or those moving further away to upsize will be qualification for financing.
The dream of a private backyard and a white picket fence is deeply rooted in our society which will keep demand up. My prediction is we will see a stabilizing of these conditions moving forward. The volume of transactions may decline but underlying market dynamics, principally demand and low supply, will buoy sales prices.
Predictably, we are reading more and more doomsday comments about significant price declines because among other key factors, interest rates are rising. But the offsetting demand, I expect, will counter that thought. We have seen this wishful thinking before. A well priced property sells in approximately 3 weeks, provided it is priced within 5% of market value. Looking at it with a seasonal perspective, the market is reasonably active in all categories of properties right across the GTA.
If you are interested in finding opportunities in today’s real estate market, you need a knowledgeable broker that can give you the information you need to make a good decision for you and your family. A full time, experienced realtor like me, associated with a great company like RE/MAX Realtron! Give me a call, let’s chat, after all you have a friend in the business who is, you know….the Point Man In Real Estate!
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Sam Chaim - Your Point Man in Real Estate
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