|(Here is some statistical information that came out today. I have added quotes to the actual information and my rough translation is in bold. Take a look at other sections of my website to learn more.)
INFORMATION PROVIDED BY ROYAL LEPAGE REAL ESTATE SERVICES LTD.
July 6, 2017
“Toronto Real Estate Board stats reveal more moderate price growth and a decline in year over year sales. The number of homes that actually sold in June 2017 were down by 37.3 per cent as compared to June 2016 and the number of new listings in June 2017 was up by 15.9 per cent in comparison to June 2016.”
So what the heck does that mean to you??? It just means that not as many homes sold last month (compared to the same month last year) and there were more homes that went on the market in J1une 2017 compared to June 2016. Sales activity was down by 37.3% and inventory was up 15.9%…REMEMBER… these numbers ONLY refer to the number of buildings that sold…NOT the price they received ok? Average sale prices were UP…read on…
Annual growth rates for MLS® HPI benchmark prices have moderated over the past two months, but remain strong, with the composite benchmark price up by 25.3 per cent on a year-over-year basis in June. June’s average selling price for all home types combined saw an increase of 6.3 per cent compared to the same month last year. A better supplied market has been a key factor influencing moderation in price growth.
Huh?? Ok, this sounds complicated but I am going to explain as generally as I can. Don’t worry too much about the “composite benchmark price” right now, that’s a tricky one. In a nutshell, it describes how much higher the price of homes has risen compared to the average price. Again…it’s more detailed than that and although HPI is a useful tool to monitor a changing the market, for now, let’s look at the average price. Based on the paragraph above, has it gone up or down?…Correct! It went up, by 6.3%.
Simply put, the average price of homes in the Greater Toronto Area (416 and 905 area codes) increased by almost 7% compared to June of 2016. The number of homes that sold in the GTA has gone down by…do you remember?…by 37.3%, good job
So the next time someone asks you “what’s happening with the Real Estate market lately?” you can say, with confidence, “Well, I read today that sales volume is way down but it’s ok because average prices are up almost 7%!”
Thank you for reading this article right to the end! I take pride in keeping people informed and breaking down complicated information into more manageable chunks. I hope you learned something valuable today! If you have questions about your home or neighborhood, feel free to reach out to me via phone, email or social media. Have a great day!