market update
should i Invest in toronto properties?
july 2023 - East Toronto
Do you have curiosity about the recent events taking place in the Toronto real estate market? Do you hold an interest to invest in Toronto properties? If thoughts about the latest advancements and trends have been on your mind, then get ready for an enjoyable experience, as we warmly welcome you back to our blog!
In this session, our attention will be directed towards the most recent market updates for July 2023 concerning Toronto East. We have crafted this information to cater to individuals with an interest in Toronto & GTA real estate news. Come along with us to acquire crucial details and invaluable insights into the realm of Toronto East real estate. Without further ado, let’s dive right in!
High Level Market Overview
Buyers and sellers need to understand the duration it takes to sell all the homes in the market, referred to as months of inventory. This knowledge gains paramount significance when considering investment in Toronto properties. In July, the market presented a supply of 1.6 months for all home types, marking a reduction from June’s 1.7 months. When comparing Central and Toronto West, Toronto East possesses the smallest inventory of available homes. Nonetheless, it’s important to note that the market’s balance still tilts in favor of sellers.
Average Price
The price of homes in different areas of Toronto East displays variation. On average, these homes are priced at $1.031 million, which stands below the June figure of $1.099 million but surpasses last year’s $1.014 million. For instance, in E02 (Danforth, Beaches, Woodbine Corridor), the average price falls below $1.360 million, while in E11 (Malvern), it hovers around $789,000.
List to sale price ratio
In July, homes in Toronto surpassed their listing prices in terms of the amount of money they fetched. However, they saw a slight decrease compared to the previous month. The reason for this phenomenon is the combination of low housing inventory and a high demand from potential buyers, resulting in competitive bidding situations. In Toronto East, all 11 areas reported homes being sold at prices higher than their original listings, which has been an ongoing trend. Home sellers deliberately set lower prices than their expected valuation to attract more prospective buyers. As a whole, Toronto’s property market has experienced a 4% increase in selling prices compared to the previous year.
Days on Market
On average, properties in the eastern part of Toronto are taking 14 days to sell, which is slightly slower compared to the previous month but still quicker than the average of 15 days from last year. Many sellers in this area are scheduling offer dates for their listings, possibly due to concerns regarding fluctuating interest rates. It remains uncertain whether this trend is merely temporary or if it will persist moving forward.
Interest Rates
The economy and job market have left interest rates in a state of uncertainty, consequently affecting the real estate scenario. On July 12, 2023, the Bank of Canada initiated its first key interest rate hike to 5% since 2001. This action led to banks raising their prime rates to 7.20%. Presently, mortgage rates vary between mid 5% to over 6%. To commence your venture in the market, explore all possible mortgage options available to you.
Market Trends Insight
Toronto East’s real estate market is doing fine, but sales dropped in July compared to June. The average price of houses sold was $1.031 million, which is less than the average in Toronto as a whole ($1.066 million). There were fewer new houses for sale in July compared to June, which means that it took longer for houses to sell (from 12 days in June to 14 days in July). The reason for the slowdown in sales is partly because the Bank of Canada raised interest rates again in June. Also, there aren’t as many houses available to buy, which makes it harder for people to make a purchase.
July 2023 Update
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