September was not a good month in Toronto real estate, no matter the spin you might be privy to on social media.
Based on what I have observed happening on the upper end of the luxury market, there were some big sales reported during the month of September that would surely add some buoyancy to the average sale price city-wide, particularly with so few transactions to pull the average apart.
And in comparison to the almost non-existent inventory the Toronto market has had to contend with for years and years, this feels like a virtual flood, even though we are only sitting somewhere between 18 and 22% above the long-term average. Some might even say that while this may finally be the closest thing to a “buyer’s market” many of us can recall, we are still firmly in balanced market territory.
All the while, there are buyers who remain, which explains the fact that prices are generally holding. In fact, on average within the city of Toronto, detached homes currently fetch 100% of their asking price with semi-detached commanding on average 104% of asking price. Townhouses 103% and condos achieving 99% of list respectively.
But even that number hides the reality that many properties are listed and relisted multiple times on their way to an accepted offer. The telling part, however, is that on it’s face we are seeing a gradual drift down in prices (and expectations!) rather than aggressive deals being scored out there.
As the fall progresses we are likely to see more of the same and with it some reluctant acceptance amongst the sellers who have properties they need to move. But provided this stasis holds, any move toward a swift and decisive correction seems a long way off.
