August tends to be the slowest month of the year for both home sales and the number of homes listed for sale, as families take time to vacation and are less focused on real estate. This was true for the detached home market. We saw fewer sales in August for detached homes. However, condos remained very popular and sales increased in August compared to July.
The average sales price for detached houses decreased in August over July while both the number of condos sold and the average price of condos were up in August.
The average detached home price decreased by 4% from July; however, it was up 20% from August of last year. The average price of a condo was up slightly by 3% from July and up 27% from August of last year.
The ratio of the inventory of homes for sale versus the number of homes sold is an important indicator of supply and demand. A ratio of anything less than 4 typically means that we’re in a sellers market. A ratio of 4-5 is a balanced market. A ratio above 5 is a buyers market.
In August, the ratios were 1.7 in the detached home market and 2.09 for the condo market. This means the supply of both detached homes and condos is still very tight.
Detached Home Market Trends
- There was a decrease in sales volume (lower demand).
- The number of listings on the market decreased in August (decreased supply).
- Well-priced homes in popular neighbourhoods are selling with multiple offers over the asking price. Pricing your home correctly is critical in this market. Over-priced homes are simply sitting on the market.
- Home price trends are really neighbourhood-specific with prices in some neighbourhoods increasing faster than in others.
Condo Market Trends
- The volume of condos sold was up in August (higher demand).
- Prices increased after a month of price decrease.
- With the new mortgage rules in place and detached home prices being simply too high for some buyers, condos often end up being the best option.
- Bidding wars are now more commonplace in the condo market. Be prepared!
The charts below give you a look at the trends in volumes and sales prices over the past year:
Etobicoke Average Sales Price of Homes and Condos
August 2017 – August 2018
Etobicoke Sales Volume of Homes and Condos Sold
August 2017 – August 2018
Detached Home Neighbourhood Average Prices August 2018
Condo Neighbourhood Average Prices August 2018
Our Tips for Buying and Selling This Fall
So what does this all mean if you’re thinking of buying or selling? We’ve got some tips to help you decide what to do.
1. Thinking of selling your home soon?
Many sellers have been holding off putting their home on the market in the hopes that prices will increase. The inventory of properties continues to be very low. If you’re thinking of selling, it’s good to list when the inventory is low as it means you have less competition.
There are buyers out there ready to purchase, but they don’t want to buy an overpriced home. You need to price your home right for the current market. It also needs to be staged to look its best and requires maximum exposure so that all potential buyers see it.
2. Are you looking to upgrade from a condo to a detached home?
Don’t wait; the time is now! You don’t want to look back in six months and think If only I’d made the move a few months ago. You’ll still get more bang for your buck than you would have this time last year. It really is still an ideal time to make a move.
The one potential downside of today’s market is that the inventory of both detached homes and condos for sale in Etobicoke is low. There are still many overpriced homes on the market where sellers are hoping to get the prices of one year ago. It’s advisable to work with an agent who knows the market to help you with the transition and avoid overpaying.
3. Are you a first-time buyer and wondering where to start?
If you’re beginning your search, one of the first things to do is to get pre-approved for your mortgage. This way, you’ll know exactly how much you can afford and avoid disappointment. The best time for you to buy is yesterday and the second best is today. Don’t wait.
4. Are you deciding whether to buy or sell first?
We delved into this topic in a recent blog post, but in general, it’s a good idea to sell first. You’ll know how much you have to spend and you won’t have to settle for a lower price if the sale ends up taking a long time. If you do buy first, you could consider adding the sale of your home as a condition in your offer. Unconditional offers were the norm for a while, but sellers are more open to considering conditional offers in today’s market.
If you’re thinking about buying or selling in the near or far future, we’re here to help. Get in touch with us today!
Do you need help to figure out what’s best for you? Let’s start a conversation.
Let’s set up a time to chat about your circumstances so we can help guide you through the next steps.