For this month’s episode of Market Watch we will be talking about how the market activity from last month. The Toronto Real Estate Board (TREB) released their market watch report for May 2017, and we’re analyzing the numbers that we see.
May is typically a strong month in real estate however last month there has been some interesting changes. It’s no surprise that the biggest increase last month was the new listings category, which was up by 48.9% in the year-by-year comparison as seen on TREB. Things are looking up for buyers.
As shown in the graph above, May is showing a steep drop in the percentage of sold listings with 53.8%, now reaching the sales percentage rate of 2014. An unexpected twist last month was the decrease in the average pricing . In the past few months we’ve seen the average price for a home steeply increase month by month, but as of last month we saw the first decline. For May 2017 the average price sits at $863,910, a more than $55,000 decrease from $919,614. Not only is it unexpected in terms of pattern but in regards to timing as well, as Spring typically shows off strong sales growth.
For those who are unaware or need a refresher as to what months of inventory are, it refers to the time it would take to sell all current listings with no new listings being added. As seen in the graph above, the average inventory for the GTA area for May 2017 has risen slightly above the plateau we had been experiencing the past few months.
The month of May was definitely an opening for home buyers. A lot of decreases were seen in many areas including price and percentage of sold homes thus creating a market where buyers are more inclined to purchase their next home or investment, rather than the market conditions we saw prior. These maybe a result of the Ontario government publicizing their intentions on reigning in home prices with various measures.
The average day on market (DOM) has now gone up 2 days from April to 10 days, while in the City of Toronto the DOM sits at 11 days. The former is stocked with 1.0 months of inventory while the latter has an increase of 1.1 months of inventory.
As of May there’s a lot more listings to pick from, and with the decrease in pricing there’s more to grab within your budget. However sellers may still be trying to achieve prices we’ve seen a few months ago, so the tug for fair market value maybe still at play.
This is why it is so important to choose the right agent; Sellers must choose someone who can provide guidance in the current situation and understands what their expectations from this transaction. Buyers must find someone who can advise them, and knows when to push and when to hold back in this market.
Steven Ho is the ideal realtor for any client, and here’s why: In a townhouse complex, Steven sold 30% of the 9 listings available, whilst 6 separate agents sold the remaining 6 listings. The average DOM for the 6 listings was 14 days, whilst for Steven’s listings the average DOM was only 9 days.
In terms of sold prices, the 6 other agents sold for roughly $489,000 while Steven Ho sold for $533,000, a difference of $44,000! A significant margin that is potentially lost with other realtors which could go to the payment of your next home. Here’s another reason to go with Steven: The other agents sold their listings for 102% of the asking price, which is a fair amount to gain no doubt. However Steven outperformed the other agents once again by selling his listings for 106% of the asking price. An additional 4% on a $500,000 home is $20,000!
People think all agents are the same, but different agents yield different results; picking Steven Ho will help you get the best results.
Source: All statistics are taken from the Toronto Real Estate Board 2017.