Toronto Real Estate Board | July 2019 Market Update

Toronto Real Estate Board | July 2019 Market Update


– Hey everyone, Richard Robbins here. Well the numbers are in for
the Toronto Real Estate Board and nothing but good news for the month of July and the first seven months of the year. Let’s have a look. You can see sales here. We start in January at 4,000 and then as every spring in most cases, it went up 5,000. You can see it kept going up March, April was up, May we were almost 10,000 sales, which was by the way, the busiest month of the year. Which is very normal. And then it drops down a
little bit here in June, which is again normal,
you know, to 8860. And then down slightly in July, again because of the summer,
not uncommon. So our sales were down 3% over June, but I’m going to show you in a minute they’re up substantially over
the same period last year. Listings around 12,000 and then they creep up as they do in the Spring. We get up here the highest point was May. So the most amount of sales were in May, most amount of listing in May. And then they go down
a little bit to 19,600 down to about 18,000. Now again if we take the active listings and divide the sales
into the active listings that gives us our months of inventory; which determines the strength
or weakness of a market. Supply and demand. Above four months buyers market, I should say above six
months buyer’s market, I’m sorry, four to six balance market, below four is going to
be a seller’s market. So all year long where has the
Toronto market been sitting? In a seller’s market very strong. Three months, 2.6, 2.2, We just keep getting stronger. 2, 2, 2.2 and 2.1. So really since March, it’s hovered right around 2 to 2.2. Very strong market. Look at prices started this year at $748k. Where are they right now?
$807k. Okay, cool numbers. Average time in the market right now is 19, 21, 23 days. But look at this, if we compare the numbers to July of 2018, July of 2019 we’ve got
some cool stuff here. ’18 July, 6,916 sales. 8,595 this July. Up 24.3%. Look at this. 2018 our prices were $782k, they are now at $807k. So year over year our prices are up 3.2%. I think this is going to get much stronger as we move into the fall. This is sort of cool here, I’ve shown you this before. This is your months of
inventory for 2017, ’18 and ’19. So, anyway, this here
you can see was 2017. What happened in April? Foreign buyer tax went in, all of a sudden we go way up, we get into higher months of inventory. Then of course we start
2018 exactly the same place. The white is 2019, this is 2018. We started at three months of inventory. We came down. Both years were exactly the same but keep watching this everybody. Then we came down in March again. Now look what happens, it starts to separate. 2018 months of inventory is higher. 2019 it starts to drop below. The gap in here starts to widen, which means the market
starts to strengthen, prices are going to be going up maybe a little bit faster. Houses are going to be selling. You are going to have
more multiple offers, probably on the more
inexpensive properties. Look we ended with 2.1
months of inventory. Last year we had 2.9, year before we had 3.2. We’re sitting right now
in a very strong market. And I would suspect once
we get through August I think you are going to see
this drop off a little more and the market even get stronger. But have a look at this. You know, everybody goes, “Well, ya know, I don’t know about prices. “Should I be buying
real estate in Toronto? “Should I be renting?” Man, if you can buy you should be buying. Let me show you why. 1998 we had 5,026 sales. That was 21 years ago. A long time ago, okay? Then we had 20,000 listings, 4.1 months of inventory. Look at 2008 and this was, ya know, tougher market right here. These two markets weren’t so good. We had 7,800 sales and then we went to
8,600 almost this year. Look at inventory was over 20,000. Over 25,000. We are now only at 18,000. Market’s very good. Months of inventory 4.1. Balance market 3.4, weak. Seller’s market 2.1,
strong seller’s market. But look at prices. $210,000 you would have paid for a house in 1998, 21 years ago. $807k, That’s a 400% increase in real estate values
over a 21 year period. Pretty crazy and right now we’re back into more of a seller’s market. Condos doing unbelievably well. Semi-detached doing well. Townhouses doing well. Medium priced detached doing well. And now all of a sudden
your higher detached market is starting to pick up speed as well. And those prices are starting to balance and maybe even strengthen a little bit. So I look at is this way, I see you’ve got a very
exciting fall ahead of you. So, hope you’ve had a great summer. Hope this was helpful and remember everybody, it’s a beautiful life, make it count.

5 thoughts on “Toronto Real Estate Board | July 2019 Market Update

  1. Very good analysis Richard

  2. Fall market is going to be strong.
    Spring market we saw homes sold in 3 days to 1 week for sought-after areas.

  3. Great news ty !!

  4. awesome sales sales sales

  5. So you buy after 400% increase? yeah buy high sell low..make sense and just before possible recession "TD's yield curve model shows 55% chance of a U.S. recession" https://business.financialpost.com/pmn/business-pmn/tds-yield-curve-model-shows-55-chance-of-a-u-s-recession-2?fbclid=IwAR0pyA96zYU6Htbu-JUmrd0nkxRx3Es09eaWC99El06WbhRHhG522CxPk_c

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