August Market Stats

September 12, 2022

August 2o22 tells the tale of a very different market than in the early days of the year.   Sales have declined dramatically 34.2%  less transactions in the month of August 2022 vs August 2021.  The average sales price is up slightly though year over year with the current average price across the GTA at $1,070,201, which represents an 0.9% increase.  In the 416 neighbourhoods the average price of a detached is $1,648,298 and in the 905  $1,515,859.  Average prices don’t tell the fully story-they’re a function on what has sold in the past month overall and not a reflection of pricing by location.  This is important to note as the change in prices is not the same across all regions, neighbourhoods and price points.  The changes vary by locale, housing type and neighbourhood. The numbers must be carefully examined to tell the complete and whole story of whats happening in your area of interest.  The overall take away is changes to the market are happening and evolving but they are uneven and a local market analysis is a more accurate approach to understanding the nuances by neighbourhood, area and housing type. 

So why is this happening?  The No. 1 reason is an increase of interest rates and cost of borrowing making housing options less affordable, as a result demand has softened.  Investors to a large degree have stepped out of the market and moving to less expensive locations to purchase.   There’s also a lot of noise in the media of impending doom and gloom, some of this is keeping buyers on the sidelines.  Buyers and Seller take note and beware of the information you are getting from the media!  Headlines do not tell the true tale.   For the first time in a long time buyers have been given an edge.  

The core of the city, most of the ‘416’ has seen a flattening of prices, fewer number of offers on offer night but the market is not at a standstill.  I personally have been in multiple offers on many properties in the $1.2-$1.8 Million range in the last few weeks, all in popular west end neighbourhoods.  We’re not in a buyers market everywhere just yet, it all depends on where you are looking, the price point, etc.  The good properties priced correctly are still actively selling.  However, sellers may need to adjust their expectations going forward and a careful market analysis should be done prior to setting a list price.   The ‘list low and sell high’ strategy may no longer work.  Time spent with your Realtor analyzing the data and working with a Realtor that really understands the micro markets must be done prior to embarking on a sale.  The same goes with Buyers.  Make sure you have an experienced Realtor working for you in this market.  A Realtor that works in and understands the nuances of your neighbourhood.  Look for an experienced Realtor that has good negotiation skills, provides a thorough real time Comparative Market Analysis (CMA), strong project management and quality marketing, someone who can help navigate the sale during these turbulent times.

I’ve been a Realtor for 20 years and have worked in all types of markets.  I’ve seen a lot and know a lot and can assist you providing insights, knowledge and negotiating skills. For a detailed analysis on whats happening in your neighbourhood or area of interest I’d be pleased to take you through the numbers and provide in depth insight and analysis so you can make an informed decision on an important financial transaction you are embarking on.  

Kindest Regards,

Terri Perras