August numbers are out. The number of homes available for sale in the GTA for August 2023 was up 27% from last year end of August. Sales however for August were only 5294 which is a 20 year low when comparing to the month of August from previous years.
This tells us we have demand going one way (Down) and listing heading Up. This happened just after the June rate hike by Bank Of Canada as it took some buyers out of the market and many decided to pause, that along with the usual summer lull as many go on vacation and stop their search dramatically slowed the demand for August 2023.
We haven’t seen a huge price change in average prices when compared to last year but the medium price has come down for the GTA according to Realosophy.com (See Chart Below)from $925K in May to $810K in August. Some of the surprisingly high sale prices we saw in February – May are now behind us and homes are selling at or around asking price unless of course they are priced low on purpose to try to generate a bidding war and that is not happening with as much frequency.

A condo averaged $737,582 last month up 1% from last year, a freehold averaged $1,328,313 in August also up 1%.
The good news is we finally have some listings for buyers to choose from the bad news is most everyone is constraint or reluctant to buy when rates are 6%.
While we are in a balanced market at the moment we are seeing a few more inventors reach out who are a bit leveraged and looking to sell a second or third property they own, especially if these inventors have variable mortgages. I suspect we will se more of them the next 12 months once their mortgage renews.
We should see inventory rise a bit more the next 2 months and then it usually starts to flatten come late November and December, but this year could be different if people are feeling the pinch. Those that can hold because they have a low or no mortgage are waiting for rates to eventually come down to sell and buy. When that will be is anyones guess but based on Bank Of Canadas comments recently as well as inflation still holding above the 2% mark we may not see a rate cut for a while.
On the ground Im seeing those looking to enter the market with a purchase price at or just under 1M are buying, especially freehold homes, they are not receiving the 5-15 offers they were in the first and second quarter of the year but they are selling at or around list in the Durham and Scarborough areas where most of these homes currently exist. First time homebuyers are finding they can enter the market if they have the income and a small downpayment.
Watching the condo sector carefully as we are seeing more and more inventory daily and I suspect prices will soften in this sector faster than they will in the freehold sector.
As always feel free to reach out any time with any questions or comments. Happy to talk Real Estate!