Mention the City of Toronto and more than likely people immediately think "real estate"! And there's nothing to fault anyone for thinking that way because Toronto's real estate market has been front and centre news around the globe for the better part of 2017!
From January until nearly the end of April 2017, Toronto's real estate market increased in value an unprecedented approx. 30% with the average price for all types of real estate cresting at $943,947! That was an increase from the year previous's average of $766,838. (See TREB 3rd May 2017 MARKET News: http://snip.ly/5krxa)
Well, a lot can change in the volatile world of real estate and in a very short time. According to the most recent MARKET News from TREB (6 July 2017 for JUNE 2017), the landscape had changed dramatically!
TORONTO SALES & AVERAGE PRICE BY MAJOR HOME TYPE - JUNE 2017:
Detached: 848 Sales = -42.9% year-over-year change
Semi-Detached: 273 Sales = -37.2% year-over-year change
Townhouse: 296 Sales = -33.2% year-over-year change
Condo Apartment: 1,702 Sales = -21.7 year-over-year change
Detached: $1,386,524 = 10.1%
Semi-Detached: $987,404 = 8.1%
Townhouse: $704,449 = 10.9%
Condo Apartment: $552,679 = 23.2%
(Source: TREB MARKET WATCH for JUNE 2017 http://snip.ly/t5ubq)
Of course, like all statistics, it's all in the context. If read on their own, one might form a very depressing picture of the once fast & furious Toronto real estate market. However, although actually unit sales are down and down substantially, the sold prices these fewer properties have been fetching is still going UP!
How to explain this? That is a never-ending complex discussion that can't be expressed here at this time, but suffice it to say there are a number of factors going that combined have caused these unique results. Some of the causes include:
- Ontario's newly minted FAIR HOUSING PLAN which was released on 21st April 2017;
- The sudden deluge of listings into the previously desert parched market place;
- Pressure caused by Chinese buyers who suddenly slowed down their consumption or disappeared entirely;
- Toronto Prices had skyrocketed within a very short time to unprecedented and unaffordable heights.
All markets are cyclical! The big questions are: 1. How long will this downward cycle last? 2. How low will prices go, if at all? and, 3. How high will inventory levels creep up to? Because in the end, everything is ultimately a matter of supply & demand.