That is the number EVERYONE is talking about since yesterday morning.
"Toronto real estate sales PLUMMETS 37% in June"
"Toronto's deflating housing bubble"
"Massive 37% plunge in sales, reports the Toronto Real Estate Board"
4,751 less sales this year.
Not quite. The average price is UP 6.3%
That said, who cares about the AVERAGE. The Toronto Real Estate board encompasses EVERYTHING.
Your condo in downtown Toronto does not get affected the same way your 2- acre lot in Keswick does. Yet, that is exactly what is being compared.
If you break it down further:
Well look at that.... So detached homes in the 416 aren't nosediving?
Condos are up how much?!?
Yes, the # of sales have dropped significantly but the reality is there was so much pent up demand that even with this decline in sales, we are seeing prices remain stable. The glory days of 30% price increases are over - and that's a good thing. No one actually believed we could see infinite exponential growth across the board - or did we?
Sure prices have dropped since their peak in April but year over year comparisons show a strong market in all types of homes and across many neighbourhoods. It's why we buy real estate - the long term.
A lot of would be buyers are now on the sidelines, waiting for prices to drop some more - prices will drop and they will rise, and probably drop again only to rise back up.
Don't time the market.
Most importantly - remember that real estate is localized. Get the facts about your market, your neighbourhood. Forget about the averages and the sexy headlines.
PS. Guess which neighbourhood in the GTA had the highest avg. price increase in April?
Tip: it also had the biggest decrease in June