In last month’s report I mentioned that the early July market seemed to be busier than usual. That apparent activity translated into strong sales volume of 8,544 transactions, up 16% over the same month last year, and – as has been the case for most of the last 10 years – increased prices. The average sale price in the GTA in July was $513,246, up 8% over July 2012.
What really caught my eye about the July numbers was that condo sales were up 10.6%, with prices up 4.1% over last July. I think that’s a sign of solid recover in the condo segment, which has been under plenty of pressure over the last few years.
Although that 8% average price increase is a bit more than I like to see, I’m not surprised: the summer usually produces fewer listings, and with loads of buyers out there the price pressure is to be expected. August is usually one of the slowest months (although not as slow as December is). Nonetheless, I think we should expect the market to continue to steam along, just like it did through July. With 20,514 active listings, we have only slightly more than last year, but that amount reflects an over-all recovery from the post-recession doldrums. Relatively stable supply, combined with all those buyers out there, should keep activity up.
We expect a seasonal spike in listings starting in September. Although that could take some of the pressure off, it also draws more buyers into the market. Overall, I’d say that price pressure isn’t going anywhere any time soon.