August traditionally brings the warmest of our summer and the colourful carnival colours sounds of Caribana can be heard riplling through The Greater Toronto Artea!. We’ve had some interesting weather — hot and humid days followed by cooling thunderstorms in the late afternoon and chiully evenings (perfect for the patio!).
In this hot market, there are also cooler winds blowing. The Toronto Real Estate Board has just released their much-anticipated July report, and we’re getting another look at more potential clouds on the horizon.
The average price of all home types sold in the GTA was $746,218, down six percent from June, but more importantly, down 19 percent from April’s high. July sales were also down more than 40 percent from the same month last year, led by the detached market segment.
Now, this doesn’t mean that the market’s downturn has wiped out the price gains this year — on the plus side, the average sales price was still five percent higher than the same time last year. The MLS® Home Price Index Composite Benchmark price was up 18 percent on a year-over-year basis.
Clearly the Ontario government’s Fair Housing Plan reforms of late April had an immediate cooling effect, and the month of July also saw the cost of borrowing increase when the Bank of Canada raised interest rates for the first time in seven years.
While we might be seeing clouds forming on the horizon, summer real estate numbers aren’t always the best predictors of where the market is going. Though it seems quieter than usual, many homeowners will be using the month of August to prepare for a busy fall. According to TREB, while sales were down in July, new listings were slightly higher than last year’s level.
In conclusion, as weather reporters will tell you, “keep your eyes to the skies.” If you’ve been wondering if now is the time to move, let me help you with the latest real estate weather predictions for our neighbourhood.
Wishing everyone a wonderful Summer, see you in September!