How’s the Market?

It’s the middle of summer and the market is behaving as it usually does. There are fewer listings, fewer sales and prices have softened compared to the spring. This happens almost every year so it doesn’t come as a surprise.

Sellers tend not to list during the summer because they know the market is slower so there are fewer listings. There are fewer sales because there are fewer listings. But why to prices usually soften?

Because the sellers who do list their homes in the summer are usually sellers who absolutely have to sell. If they didn’t have to sell, they’d probably wait to list in the fall or spring because those markets typically yield higher prices. Sellers who are very motivated to sell are prone to accept lower prices than sellers who don’t have to sell. Once Seller A of House Type A accepts a low price, other buyers who look at other homes of the same type expect to pay a similarly low price. This kind of chain reaction over many house types has the effect of lowering prices overall.

At the beginning of the fall market, it’s typical for some buyers to still expect to be able to buy homes for summer prices. But in many cases they’ll be negotiating against sellers who don’t have to sell and won’t accept such low prices. It then comes down to who’ll blink first. Is the buyer willing to hold out until the seller softens or does the buyer want the home badly enough to pay a higher price?  Is the seller willing to wait for the right price or does the seller want to get it over with and move on with life?

If buyers blink first, prices will rise from their summer levels, which were lower than the spring prices. If sellers blink first, prices may stay at their summer levels. Often, all it takes is a few sales at high prices from desperate buyers to set the direction for the whole market.

Right now it feels as though there’s a sense of caution in the market on the buying side. Prices increased in central Toronto in the spring, but not by leaps and bounds and not in all segments. It was a slow, gradual increase. That’s what I expect to see more of going forward. But there’s so much going on in the world that anything can happen.

Central Toronto – Market Overview

  Average Price % of List # of Sales Total Listings # of New Listings Average Days on Market
Jul ’17 $820,906 98% 1,144 2,718 2,153 20
Aug ’17 $798,797 99% 1,257 2,263 1,740 24
Sep ’17 $906,357 99% 1,250 2,711 2,625 22
Oct ’17 $901,180 99% 1,373 2,717 2,418 20
Nov ’17 $910,508 99% 1,446 2,599 2,332 20
Dec ’17 $827,033 98% 944 1,759 994 24
Jan ’18 $857,361 99% 746 1,719 1,419 26
Feb ’18 $892,378 100% 982 1,994 1,748 22
Mar ’18 $883,297 100% 1,386 2,125 2,217 17
Apr ’18 $949,084 101% 1,479 2,387 2,611 15
May ’18 $960,558 101% 1,555 2,965 3,189 16
Jun ’18 $966,088 100% 1,498 2,913 2,552 16
Jul ’18 $931,472 99% 1,240 2,778 2,215 20

 

Prices – John Wanless and Bedford Park Public School Neighbourhoods

There are five typical home styles in the neighbourhood north of Lawrence, east of Avenue Road, west of Mount Pleasant Road and south of Old Orchard Grove and Snowdon Avenue. Each typical home style is shown on the chart below. Please remember that factors such as house size, lot size and dimensions, condition and location, amongst others, affect selling prices.

Type of Home  No. of Sales Price Range  Ave. Price Date
  • 2 Bedroom
  • Bungalow
  • Mutual driveway
2 $1,438,000 – $1,530,000 $1,484,000 Jan ’18 – Jul ’18
  • 3 Bedroom
  • Semi-detached
  • No family room
20 $925,000 – $1,580,000 $1,226,000 Jan ’18 – Jul ’18
  • 3 Bedroom
  • 2 Storey Detached
  • No family room
12 $1,300,000 – $1,706,000 $1,545,000 Jan ’18 – Jul ’18
  • 3 Bedroom
  • 2 Storey Detached
  • Family Room
8 $1,150,000 – $1,750,000 $1,609,250 Jan ’18 – Jul ’18
  • Newer Construction
8 $2,310,000 – $2,750,000 $2,513,750 Jan ’18 – Jul ’18

 

Prices – John Ross Robertson, Lytton Park, Lawrence Park and Cricket Club Areas

JOHN ROSS ROBERTSON – Chudleigh Ave., Cheritan Ave., Chatsworth Dr., Glenview Ave., Glengrove Ave. W., Glencairn Ave.

LYTTON PARK – east and west of Avenue Road: Alexandra Blvd., Lytton Blvd., Strathallan Blvd., Cortleigh Blvd., Hillhurst Blvd. (almost all of these homes are on 50 foot wide lots)

LAWRENCE PARK – between Yonge St., Bayview Ave., Lawrence Ave. E., and Blythwood Rd. (almost all of these homes are on 50 foot wide lots)

CRICKET CLUB – between Avenue Rd., Yonge St., Wilson Ave., and Brooke Ave.

House Type John Ross Robertson  Lytton Park  Lawrence Park  Cricket Club 
  • 30 foot lot
  • 2 storey
  • 3 bedrooms
  • Private Drive
$2,000,000 – $2,500,000 Not found in this area  Not found in this area  $1,800,000 – $2,400,000
  • 30 or 40 foot lots
  • 4 bedrooms
  • Private Drive
 $2,000,000 – $2,800,000  Not found in this area  Not found in this area  $2,000,000 – $2,500,000
  • 50 foot lot
  • 4+ bedrooms
  • Private Drive
  • Solid Condition
  • Not Renovated
  • No family room
 $2,800,000 – $3,500,000   $2,600,000 – $3,000,000  $2,800,000 – $3,200,000 $2,400,000 – $2,800,000
  • 50 foot lot
  • 4+ bedrooms
  • Private Drive
  • Renovated
  • Family Room
 $3,000,000+   $2,800,000+   $3,000,000+  $2,600,000+
  • 50 foot lot
  • Land Value
 $2,800,000 – $3,500,000   $2,600,000 – $3,000,000 $2,800,000 – $3,200,000    $2,400,000 – $2,800,000

 

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