<img height="1" width="1" src="https://www.facebook.com/tr?id=390674378043480&amp;ev=PageView &amp;noscript=1"/> What's Going On?!? - The Storey Team : Toronto Real Estate

The Storey Team : Toronto Real Estate

What's Going On?!?

25 May 2017
Tom Storey

I had a good discussion today with a few friends on the perception that we are seeing a shift in the Toronto market. Thought I would share a few point that the media typically doesn't.

1. Not all properties are selling on offer date. YES TRUE, but this means people are re-listing the same property 2 or 3 times, which is counted as 3 new listing when the stats come out. So the numbers are not what they seem. This is happening a lot.

2. Mid month stats are showing by end of May we will be sitting at 2.1 months of inventory (still very much a sellers market)

3. I haven't seen any "are you kidding me prices" in the last month. Where I would see it on a daily basis a month ago. This is good for the overall market.

4. When you're looking at year over year inventory, and how it's way up this month, that is being based on only last year, which was the lowest year in the history of TREB for new listings. If you look at inventory levels over the past 5 years, we are still below what would have been considered normal.

5. Jan 1 (2017) : Average sale price 770K. April 1 (2017) Average sale price 920K. That's growth that is not stable, and more inventory will hopefully get us back to "normal" levels, and by the way more inventory has been what people have been asking for!

6. Prices have not gone down. You're property may be worth 90-95% of what you could have sold for 2 months ago.... but it's still worth 30% more then it was last year. So it's all how you look at it. Although not all properties are selling on offer night, they are still selling for record prices, it's just taking longer then what we were use to.

7. For 90% of people buying real estate, it's a huge life event and a very emotional process. They don't look at it like a stock. They just want a place to live, and over the past 30 years on average we have seen a 7% increase in Toronto prices (through all the ups and downs) so if you're not trying to time the market, and you're in it for at least 3-5 years, history has shown you're typically OK.