August was a good month for property sales in the City of Toronto. The average sale price came in at $795,233. This is up over 8% from last August’s average sale price of $726,712. The number of properties sold in August decreased slightly by only 1.6% as compared to last year.
By housing type, detached home sold prices were up 4.5% and condominium unit sale prices increased by 8.4%. However for semi-detached properties, sold prices remained unchanged from last August.
Central Toronto continues to be the most expensive area of the city and the real winners in this market are condominium apartments located here in the core. The average sold price for a condo in Central Toronto is now $662,059 up 22.6% from last August’s $540,169.
The high end or luxury property sales over $2 Million also improved. 77 properties sold over $2M this August in the City of Toronto. This is only a slight increase from last year when 73 properties sold. However, sold prices of luxury properties increased by almost 14% as compared to a year ago even though they took 13 days longer to sell than in August of 2017.
The average sold price for a luxury house in the City is now $3.134M up 10% from last August’s $2.847M. The average sale price for a luxury condo is $3.634M up 37.4% from last August.
Condos in all price ranges in the City continue to appreciate faster than houses. In the lower price ranges, condos are the only option for those who want to live close to where they work as they simply cannot afford the high cost of a house.
In the higher price ranges, there are not enough larger condo units in good buildings for down-sizers coming from homes and this lack of supply is driving up prices dramatically in this price category.
In the overall market, listing inventories have increased compared to August last year. This August 3,752 new properties came to market, an increase of 4.1% compared to the 3,603 that came to market last year.
Active listings at the end of August were only 1.4% higher than last year. In 2017 there were 4,743 properties available for buyers to view and purchase. This year there were 4,808.
Unlike last year when sale prices were occasionally exceeding the average list price, all sales came in this August at 99% of their sale price and sold in 24 days. Buyers are more deliberate, unwilling to pay any price to secure a property. Sellers’ expectations have modified dramatically since early last year and are more aligned with that of buyers.
Toronto’s eastern district is the one trading area that continues to fly high unaffected by government intervention to cool markets or interest rate increases. Sales in these neighbourhoods, especially areas closest to the downtown core (Riverdale, Leslieville, and the Beaches) were all completed in 10 days on average, and all sales prices exceeded the average list price by 109%.
At one time it could be argued that these trading regions bucked the norm because of affordability, but with the average sale price for semi-detached properties exceeding $1,000,000 that is obviously no longer the case. These neighbourhoods are simply some of the most desirable in the City of Toronto in their price point.
During the last part of this year the real estate market in the City of Toronto is unlikely to vary dramatically from what occurred in August. In fact, price increase and number of property sales will likely be even more moderate that those achieved this August.
An 8% increase in the average sale price is high as compared to August 2017, the weakest month following the implementation of the Ontario Fair Housing Plan in 2017. Going forward expect increases in the 3 to 5% range for both sales and average sale prices.
Victoria Boscariolis a real estate agent in Toronto Canada with Chestnut Park Real Estate Limited Brokerage. With over 20 years experience, Victoria has been helping people successfully buy and sell condos and houses in Yorkville and downtown Toronto. As a Certified International Property Specialist (CIPS) she has worked with Buyers from around the world moving to Toronto from China, Russia, Brazil, India, South Africa, United Arab Emirates, Jordan, Cyprus, Italy, Germany, The United Kingdom, Australia and the United States. By building an international marketing strategy for every property she puts up for sale, Victoria's listings of Toronto homes and luxury condos get global exposure that attract qualified buyers from around the world.