Market Remains Strong in July
August 6, 2019
Market Remains Strong in July – July is typically a month where people relax, enjoy the nice weather and take it slow. Not realtors! During the past month, Greater Toronto Area Realtors reported 8,595 sales, a 24.3% increase when compared to July 2018. Even though July was down 2.8% month-over-month, the amount of sales reported is still very strong considering the summer months tend to be a time when the market slows down.
Here are York Region’s top 5 communities in July for sales.
1. Markham 398
2. Vaughan 323
3. Richmond Hill 262
4. Newmarket 134
5. Aurora 97
The average sale price for all home types in the GTA continues to increase year-over-year. During July, the average sale price for all home types was 3.2% higher at $806,755, while month over month the average price was lower by 3.1%. In Markham, the average sale price for a detached home increased by 3% to $1,233,382 and in Stouffville, the average sale priced for a detached home dropped by 3% to $966,323.
The detached home market continued to drive sales in the 905-area code during July. A total of 3,075 transactions were completed in the month with the average sale price being $929,633. Overall there was a 29.7% increase in sales and a 2.5% increase to the average price year-over-year.
The 416-area code continued to see the majority of its transactions come from the condo market. This ongoing interest has increased the average sale price by 7.7% year-over-year and resulted in 1,617 transactions during July. The increased competition between buyers for available properties has resulted in relatively strong price growth above the rate of inflation for semi-detached houses, townhouses and condominium apartments.
Although new listings were up by 3.7% in July to 14,393 active listings were down by 9.1% indicating tighter market conditions and the opportunity for price growth.
The luxury market over $3 million operates at a level far different from the rest of the market. Since the beginning of the year, six luxury homes have sold in Markham with an average sale price of $3,397,065 while 62 properties remain on the market. In Stouffville, there has still been no sale over $3 million while sixteen properties remain on the market.
What Does This All Mean?
During July, we have witnessed as Canada and the United States both took actions to make housing more attainable. Canada lowered its mortgage qualifying rate by 0.25% to 5.19%, while the US lowered its interest rate by 0.25%. Canada often looks to the US when making interest rate decision as a good portion of the Canadian economy relies on trade with the US.
Higher density homes continue to drive price growth in the GTA, by seeing interest rate cuts buyers are feeling a little more relieved. The ongoing summer sales activity has shown us that buyers might sense that the market could be on its way upwards and price growth is imminent.
With another interest rate decision to be made on September 9 and a federal election occurring this fall a lot of attention will be placed on affordable housing. Whether we see a new government this year or remain with the current one, the decisions being made could have an impact on the real estate market later this year.
* Market Remains Strong in July – written by Benczik Team Realty
For more information on your home, visit our website and get a free home evaluation to ensure you get the best seller’s service! With experience around Markham, Stouffville, Unionville, and all of York Region, Benczik Team Realty works to serve you in the best way possible! Act now, and don’t miss out on this ever-growing market.