For this month’s episode of Market Watch we will be talking about what the September market looked like. The Toronto Real Estate Board (TREB) released their market watch report for the last month and we’re going to discuss the numbers.
2017 is almost over, with roughly three months to ago. In contrast to last month (August 2017 was down 7%) the number of new listings are up by roughly 9.5% in the year-by-year comparison as seen on TREB. However the number of active listings have increased by 69% compared to September 2016.
As shown in the graph above, September sales have dropped roughly 33% (vs. September 2016), moving away from the 2013 rate but possibly heading towards the 2012 rate.
However unlike for August 2017, where the sales had slowed down and the price had lowered too, September 2017 has an increased average price. As of September 2017 the average price sits at $775,546 which is a significant jump from August 2017’s $732,292. That’s a 6% increase from the previous month!
Overall sales has reduced for all types of homes. However all but detached homes have increased in their values in the Year-Over-Year percent change. Detached homes have maintained the same value from last year.
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. In this market keeping track of the months of inventory is as important as keeping track of comparative prices. As seen in the graph above, the average inventory for the GTA area for September 2017 has risen back to the numbers between June and July this year, surpassing almost all the recent years.
The increase in new listings for September mean that sellers are now feeling more confident in their decisions to list their homes, with the prices remaining relatively high. According to TREB more buyers are moving into the market as well, taking advantage of the increased listings on the market.
The average day on market (DOM) for the City of Mississauga is 23 days while the City of Toronto now sits at 21 days. All cities are stocked with an average of 2.98 months of inventory.
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.
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.