After analysing June’s sales numbers for the Toronto Real Estate Board today, we can see some welcome relief with inventory levels increasing moderately in many areas. In June there were 9,422 sales for the month in the Greater Toronto Area which is a slight drop of 5% off the number of sales reported during the same time last year.
At the end of June there were still only 20,583 homes for sale in the GTA, which is creeping up slightly and which in my opinion is a welcome relief. With that, in the GTA we are maintaining a 2.2 month’s supply of inventory which in anyone’s books is still in what’s considered a strong “seller’s market”.
You may hear some media reports calling for a market correction but don’t head for the life boats yet. Although we may see some challenges in the condo market in the GTA, we have a long way through our current conditions before we get to what could be considered balanced or “normal” conditions in most sectors of the market.
So ... how healthy IS the market??? My Answer: VERY healthy! We’re going to see a typical cycle for the next 6 months that we would see any other year. Sales will slow down somewhat over the summer and pick up slightly in the fall. I think inventory will rise some more over the next few months and we need that. We will still see well priced listings sell quickly and some multiple offers still happening but maybe not as frequently as in the past. As inventory rises, sellers need to be more price conscious than in the past. If listings don’t sell in 2-3 weeks, prices should be adjusted. Values will continue to rise moderately. There’s nothing on the horizon that should cause mortgage rates to rise anytime soon, so it’s a pretty safe bet for anyone to buy their first home, make a move “up”, or for anyone looking for investment properties or second homes.
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