The statistics package for the city was released a couple of days ago with more strong growth across sales numbers, pricing increases and average/benchmark number increases.
Inventory remains low, the rental market remains tight, folks impacted by flooding have begun to make choices and purchased new homes in some cases. The condo market has seen an increase in sales as well as new listings. Also, the luxury market continues to set records.
I have been working with a few families looking to purchase a property only due to inability to find rental property for aging parents, children in school or temporary relocation. The rental market is having an important impact, I believe, on our resale market. As well, I haven't yet heard if any projects under construction have adjusted timelines for completion so that may also have a future effect on expectations and property availability.
So million dollar homes aside, what does this all mean for a more typical family home? I'm finding it is just harder to find the 'right' property due to lack of inventory especially at more reasonable home prices. Being realistic and being prepared are key. With mortgage rates seeing adjustments, a pre-approval or pre-qualification that is more than a month old is out of date and does require an update.
I find it interesting that a larger than average number of investors have been calling recently to sell previously rented property. I get the sense that some were waiting until the market improved to the point that they wished to sell. The same has been for home owners looking for a property move up. It is a seller's market so that only makes sense.
Notable numbers from the CREB press release:
Single-family sales totaled 1,517 units in August, a 30 per cent increase over the previous year. Despite strong sales in the past couple of months, year-to-date sales activity has grown by 5.4 per cent, slightly stronger than anticipated.
Year-to-date condominium apartment sales totaled 2,823 units, a 13.7 per cent increase over the previous year. Unlike the single-family market, new listings are declining, causing the market to become tighter than levels recorded in the previous month.
Meanwhile, the condominium townhouse market, like the single-family market, not only recorded strong sales growth but also saw a rise in new listings, helping ease some tightness in this market. Year-to-date sale and new listings increased at a respective 21.4 and 2.6 per cent.
Single-family benchmark prices reached $464,700 in August, a 7.4 per cent rise from the previous year and a 0.7 per cent increase over July.
Meanwhile, condominium apartment and townhouse prices totaled a respective $270,600 and $298,500 in August, increasing by more than seven per cent compared to the previous year.
“While citywide single-family benchmark prices have risen above unadjusted highs by $13,400, as of August both condominium apartment and townhouse units are a respective $26,400 and $32,300 below the unadjusted highs recorded in 2007.”