I’d like to reflect on the real estate market’s performance over the past month. Although July is traditionally a quieter month, the last few years have seen summer sales dip well below the 10-year average.
The Toronto Regional Real Estate Board released their figures this morning, reporting approximately 5,400 sales. For perspective, over the past decade, July has averaged a little over 7,700 sales, so this year is off by about 30%. And, of course, this is taking place under the backdrop of a second interest rate cut by the Bank of Canada, which we’re expecting will support increased market activity.
However, as I’ve written before, it is crucial not to paint an entire market with a single brush. The GTA is a diverse region comprised of unique neighbourhoods and communities, each with its own dynamics. What transpires in Leaside may not reflect conditions in Long Branch. At Harvey Kalles Real Estate, we recognize this diversity, and our weekly sales meetings are a testament to our commitment to understanding both the macro and micro aspects of the market. These meetings provide valuable insights as our team members share their experiences and observations from the field.
Last week, one of our sales representatives highlighted the importance of avoiding absolutes in real estate. In July, while working with buyers, he toured multiple properties that were sold within three days. Despite the overall market slowdown, these instances remind us that real estate is anything but predictable. Buyers who assume there is ample time to weigh a decision may discover their dream home has been sold to another party.
This prompted me to dig a little deeper into the sales data for July which revealed some interesting insights: over 17% of sales in July occurred in less than a week. The average ‘days on market’ may have been 24, but many homes sold just as quickly as they were listed. These quicker transactions ranged in price points and neighbourhoods, from a $3.5 million house in central Toronto that sold in two days, to a $390,000 condo in King West that also sold in two days. I think it’s worth noting that about 6.5% of these swifter sales were for properties priced over $2 million, which aligns with broader market trends.
These stats suggest that although buyers are certainly in a more favourable position than they were a year ago, caution is advised against delaying decisions when you’ve found the right home. Other buyers are active. What might be your dream home could be someone else’s, too.
At Harvey Kalles Real Estate, we empower our clients and sales team with the knowledge and insight necessary to navigate these nuances.
As we move forward, let’s recognize the complexities of the real estate landscape. July may have been a slow month in terms of sales volume, but the market’s underlying activity underscores the importance of staying informed and being ready to act when opportunity arises.
