It wasn’t just the temperature that heated up in June, it was also a very active month for Etobicoke real estate. The average sales price for detached houses increased in June over the prior month. This was the fourth consecutive month of price increases in our Etobicoke detached home market. After a run-up in the condo market over several months, average prices remained flat or down slightly.
The average detached home price increased by 6%. The increase is due to a combination of prices going up and more expensive homes on average selling in the month of June. The average price of a condo was down slightly by 1% from the prior month.
The number of detached homes sold was down compared to the prior month, while the number of condos sold was up compared to prior month. The sales volumes of both condos and detached homes were the second-highest this year, in terms of a one-month period. Buyers seem to be ready to pull the trigger and make a purchase.
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 June, the ratios were 1.95 in the detached home market and 2.05 for the condo market. This means the supply of both detached homes and condos is still very tight.
Detached Home Market Trends
- There was decrease in sales volume (lower demand).
- The number of listings on the market decreased slightly in June (decreased supply).
- Well-priced homes in popular neighbourhoods are selling with multiple offers over the asking price. Two of our listings in Sunnylea were snatched up within days of hitting the market.
- Home price trends are really neighbourhood specific with some neighbourhoods increasing faster than others.
Condo Market Trends
- The volume of condos sold was down in June (lower demand).
- Prices decreased slightly from the all-time yearly high.
- The ratio of condos for sale versus condos sold is very low, which means there’s more demand than there is supply. However, the number of condos currently on the market continues to increase. This is perhaps a sign that prices will start to level out.
- 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
June 2017 – June 2018
Etobicoke Sales Volume of Homes and Condos Sold
June 2017 – June 2018
Detached Home Neighbourhood Average Prices June 2018
Condo Neighbourhood Average Prices June 2018
Our Tips for Buying and Selling This Summer
So what does this 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 back in the summer. 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 it 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!
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