This summer saw a continued recovery in the housing market with single family homes posting an 8% price gain from a year ago and condos increasing 1.7%. Going forward it looks like there will be less condo construction as builders land purchases in Toronto are off 51% for the first 6 months this year compared to the same time period last year which should mean less building later and should be a positive change for the existing condo market.
Midtown Condos C10 area had 34 sales this July versus last July’s 37. However inventory is down from 96 units for sale last year to just 69 units for sale now. The days on market has dropped from 31 days last year to 24 days during this July.
On Merton Street there are only 6 units for sale mid august. Normally there would be around 10-12 units for sale at this time of year. Lower inventory means lower sales too with just 4 sales in July compared to 7 sales last July. Days on market has doubled to 36 days this July from 18 days last July but this was mainly a reflection on some larger units for sale which normally take longer to sell.
We should see a pick up in inventory and sales in September as buyers are now more inclined to buy and lock in attractive fixed interest rates which have just started to move slowly higher this year reflecting bond market yields and an improving economy south of the border.