Is Toronto's Real Estate Market Grinding To A Halt? What You Need to Know (August 2022)
The number of sales are down by -34.2% year-over-year. What does that mean for the Toronto real estate market? How does it affect you? What about sellers, are they in a panic or rush to sell? Check out our latest market report based on the August 2022 stats from the Toronto Real Estate Market (entire GTA). I'll go through detached vs condo, months of inventory, and the number of sales.
Transcript**
All right, bud. All right. So we're gonna stop the day by going to one of our listings, which you know, in a normal market, would've sold for 1.6 million, but right now it's kind of crazy right now. Likely dropped the price significantly, but yet, and they're still showings. Don't get me wrong. It's just that right now, we're not getting the offers.
So what the heck? So we're gonna try something new and. Rearrange the furniture around. Maybe, hopefully it'll look a little better once we do that.
And I don't even know if it's furniture, that's the issue because it looks actually pretty nice. You know, anything we do to help, I think makes a big difference.
All right guys.
Okay. The sellers are finally happy. Everything's been rearranged a little bit. Looks a lot better. Hopefully, uh, better result in getting enough. Yeah, I know it's been a rough time for sellers and I tell everybody that, look, if you wanna buy low, well, guess what, you're gonna have to sell low as well too. I think it's a combination of the August vacation season when everyone's just at the cottages or just not even thinking about real estate cuz they're, you know, the euros really low right now.
So they're probably traveling as well too, you know, we'll see what happens in the September months that come up as well too. Uh, you know, there's gonna be a rate hike. Tomorrow. Well, which is probably today by the time this gets released, I think everyone's just kind of waiting to see what will happen with interest rates.
And undoubtedly, it's gonna go up, um, you know, they're talking about a jumbo rate hike. We'll see what happens. It might be the last one, hopefully who knows. Doesn't really help with the mixed media and, and what the news is putting out there just to kind of scare everyone. Right? At the end of the day, the average price of a detached home has gone down by 3.1% year over year in August.
Surprisingly condos actually have gone up by 3.6% year over year. It's not the average price that matters because I think a lot of sellers are kind of just, you know, they're holding out and waiting for the price that they actually want. What actually happens is that it's the pace of sales that have dropped significantly.
So last year we're talking about. Uh, from year over year in August, we're looking at negative 34%, 34.2%. And in July was like 42% or something like that. Negative. If the sales pace of sales have dropped by a third or even a half, then, you know, things are gonna get feel a little slow and it is gonna hurt a little bit.
And while there's less sales, the amount of active inventory has actually gone up as well, too at, uh, 62.3%. Meaning. The months of inventory is actually at 2.3%, which historically isn't that bad. It's kind of more of a balanced market. Everyone's predicting it to be like, you know, in the threes or hired.
So the reason why the news can't be that accurate is cuz you can't get an overall picture of what's happening with the market. Cuz every little market is different. You have, um, you know, a location, you have property types, you have even the price points, the all that stuff really matters in assessing what's happening with that particular market.
So every day I've been fielding calls with what's happening. In the real estate market and also what's happening in the property values. If you're one of those people just gimme a call and I'd be happy to walk you through what's happening with your specific property type. At the end of the day, I don't think people are panic selling.
I don't think anybody's really rushing to sell. Ultimately the rental market has made a huge rebound and it's actually on a big tear because affordability is shrinking, even though prices are coming down the cost to carry something because interest rates are so high, monthly payments are just so high and a lot of people can't afford that.
So they're either choosing to rent because they have to. Or they're choosing to rent to wait it out. Right? So I've noticed that a lot of people have been competing for rentals in every listing. We have, we have multiple offers. We still have a lot of pressure upward pressure from the market, from immigration and just the rising cost of new construction.
Every situation's different. I encourage you to give me a call and reach out if you wanna have a personalized consultation and we can just walk you through everything in what we're seeing in the. Okay, thanks for watching until then. I'll catch you next time,
you know, with, with the market, what's happening with it right now. I'm just like wondering if I made the right decision or not it's this is the reality of the market and we have to work with that. So what can we do to stand out a little bit more?