Eric | Aug. 14, 2017
Overall sales in July receded 5.1% versus last year to 558 residential sales. Sales are in line with the 5-year average. However, because of the frenzy at the beginning of the year we are still on track for more sales than last year with 4,387 total sales year-to-date – 6.9% higher than at the same time last year.
New home listings continue to hit the market at a relatively high rate. 811 listings hit the market in July – up 22.9% versus a year ago.
More inventory and slower sales are a direct result of Kathleen Wynne’s housing plan. Her new measures to cool the real estate market have caused a large amount of uncertainty. Sellers are worried that they will miss getting top dollar for their homes and inventory of homes for sale has skyrocketed. Buyers are worried about what these new rules mean for their future finances. Buyers don’t want to be left with a home that they paid too much for and are being more cautious. Once uncertainty recedes, Buyers and Sellers will likely come back strong and the trend we saw in early 2016 will continue.
July home sales by type:
365 single detached homes – in line with last year
113 condominium homes – down 21.5%
38 semi-detached homes – down 20.8%
36 townhomes – up 44%
The average price of all residential sales in July increased to $455,217 an increase of 17.4% compared to July last year.
Single detached average price: $519,507 – UP 14.7%
Apartment style condo average price: $277,866 – UP 13.9%
Townhouse average price: $350,342 – UP 22.8%
Semi-detached average price: $352,721 – UP 14.3%
Here is a chart that shows what has happened to the average sale prices over the past 7 months. We have to be a little careful how we interpret this data (given that there could have been a larger number of more expensive homes sold in a given period), but it does give us a picture of the peak in April and the consequent pull back of about 10%