October 11, 2017 | Uncategorized
September Sales were down
It’s been a rollercoaster of a summer, and it looks like it’ll continue into the fall; Toronto-area sales were down this September. By a lot, too. There were 35% fewer sales last month than a year ago. But the number of new listings were up, by almost 10 percent.
It means that more sellers listed and fewer buyers bought this September than last year – but a little more evenly than in August.
The Toronto Real Estate Board’s President, Tim Syrianos, suggests that sellers might have hoped for an uptick of buyers in the fall.
Since so many people travel during Labour Day weekend, early September is usually a hotbed of activity. Many sellers hoped to wait out the market shift for a September rebound. But that’s not quite what they got.
But prices were up
Still, the average price per listing was up. While it’s only a few percentage points higher than September of last year, we saw homes go for a whopping 6 percent higher than homes sold in August.
It amounts to about $45,000 more on average per home sold in September. So it looks like buyer confidence might be recovering – if only a little.
Interestingly, condos made up a good 60 percent of sales. The lower entry cost, larger buyer pool, and tight rental market mean that both end users and investors are buying resale condos. And they might be getting a better deal than they could have a year ago.
It’s changing offers
Anecdotally, we’ve seen a little bit of a change in buyer offers in the last few months. Buyers are submitting offers that are at or even below listing price, a first in years, and with attached conditions. These conditions aren’t anything that would out of the ordinary in a balanced market – offers conditional upon satisfactory financing, or following inspections – but this shows that the intense buyer bidding wars of the last five years might have reached a slowdown.
But it’s not all of Toronto
These numbers are notably regional. Hot areas of Toronto, with lower inventory, have been mostly spared by the market shift this summer. But areas outside of the downtown core and in the Greater Golden Horseshoe are having a harder time selling their homes.
It means you need an agent who’s strategic in their pricing and marketing. Staging and properly preparing your home is more important than ever in today’s market. Buyers need to fall in love with a luxury property.
For buyers, what you do depends on what you’re looking for. With prices lower than they’ve been in a year, it’s actually a good time to snag a listing that’s been languishing on the market during the summer. Since luxury properties have a smaller buyer pool, you’re facing less competition for your dream estate.
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