The first week of the month has once again brought us new housing market data to review. With the majority of analysis already covered by newspapers and real estate sites, we will keep our comments to a few angles not widely reported. Overall the August numbers were marginally better for home owners than prospective buyers; however, it wasn’t all good for the Toronto housing market.
The most notable stat was that home sales in the city of Toronto came in just under last year’s sales numbers, with 21 fewer sales compared to 2017. That stat is not anything to be too particular about, except when you remember that last year’s sales dropped 27% from 2016 levels. Meaning that while total sales were level with last year, both 2017 and 2018 were still well below the typical sales volume for the month.
The monthly average price went up for both the city and the suburbs supported by two contributing factors. The first being genuine price increases. In the city, detached homes went up 5% and condos increased by 8, though semis and townhouses held essentially flat. In the suburbs, detached homes remained flat, while semis, townhouses and condos all rose by roughly 5%. These price increases contributed to part of the year over year increase for the month. The second factor was where the percentage of sales were allocated by housing types. In both the Toronto and the GTA region, the most expensive segment, detached homes, made up a slightly larger share of the total sales this year, with each up 2% (25-23% in Toronto, 55-53% for the GTA). The elevated percentage of detached homes helped both jurisdictions increase their average price year over year.
Type of Home
|Percentage of Total Sales|
Finally, despite what some headlines said, new listings were up in both the city and the suburbs. In Toronto new listings increased 4% over 2017, while the rest of the GTA saw listings rise even higher with a 7% increase. Overall, this kept August 2018 in alignment with past years. That said, comparing sales to new listings is most important, and August offered a more owner friendly ratio of 56%.
The annual summer real estate slow down is over and we will now wait to see what the fall brings.