Summer 2014 Market Review
As predicted, the summer market was much busier than usual. July saw a 10% increase in sales volume over July 2013, with 9,198 transactions reported on TREB, making it the second busiest July on record. The average sale price hit $550,700, up 7.5% over the previous July – a number that was actually lower than the average selling price in June, a reflection of the typical spring-to-summer market shift.
As has been the case for some time now, the average was pushed up by significant increases in the detached house segment, which was up 11% year-over-year. By comparison, the well-supplied (and still resilient) condo market saw just a 5.3% price increase GTA-wide (and a slightly lower increase of 4.7% in the 416). Of note, the volume of condo sales was up 13.4%, showing the continuing strength in that segment.
August was another busy month. At 7,600, the total number of transactions was noticeably lower than July – which is completely normal – but was up compared to the August 2013 number, 7,391. Both new and active (total number of) listings were down for the month. It’s no surprise that the average sale price for the month was up 8.9%, to $546,303, compared to the 2013 number, $501,677. For the entire year 2014 (i.e. through August) the average price is up 8.5%, to $562,504. Clearly, the sellers’ market is still strong.
The busy summer reflects a solid buyer pool that is still confident about investing in the Toronto real estate market – despite the incessant droning of negative opinions from the media, financial advisers, politicians, etc. The fall market will generate more listings. Some of those listings will be the odd one that didn’t sell previously; others will be net new listings, as is always the case this time of year. I know from meeting with my RE/MAX Hallmark colleagues this week that there’s a fair bit in the pipe. Fall 2014 is going to be a great time to buy and sell!