Toronto real estate showed signs of improvement from last year, but that doesn’t exactly say much.Toronto Real Estate Board (TREB) numbers show sales improved in July, printing a huge jump. Last year’s numbers were hampered by policy changes, so it isn’t the great news it appears. Despite showing big gains, most numbers indicate it was the second worst July in years.
Toronto Real Estate Prices Drop From Last Month
The price of a typical home fell on a monthly basis. TREB reported a benchmark price of $768,400 in July, down $3,700 from the month before. In the City of Toronto the benchmark fell to $838,900, down $1,300 from June. The monthly change had varying impacts on the annual price change.
The annual change showed signs of improvement. TREB’s benchmark in July is down 0.59% from last year, better than the 4.76% decline we saw last month. The City of Toronto’s benchmark annual benchmark is 3.8% higher, up from 1.29% the month before. It’s not last year’s 18% and 20% respectively, but it could be worse.
Median Sale Price Rises Over 7%
The median sale price of a home across Toronto leaped higher from last year. TREB reported a median sale price of $670,000, an increase of 7.02% from last year. The City of Toronto’s median sale price came in at $650,000, up 10.26% from the same time last year. Median prices are not adjusted to size or quality, but they’re popular with foreign buyers.
The Average Sale Price Is Up Over 4%
The average sale price of Toronto real estate is up from last year, across the board. TREB reported an average sale price of $782,129 in July, up 4.81% from last year. The City of Toronto saw an average sale price of $824,336, up 8.54% from last year. Average sale prices aren’t indicative of what you would pay for a home, but a better indicator of dollar flow. That being a positive here.
Toronto Real Estate Sales Rise Over 11%
The volume of Toronto real estate sales showed big improvements from last year. TREB reported 6,961 sales in July, up 17.56% from last year. The City of Toronto represented 2,574 of those sales, up 11.76% from last year. Before you get too excited about the jump in sales, last year was the biggest drop in sales since 2009. The revision of last year’s sales also drops it down another 52 homes. Other than July 2017, you would have to go back a looong time to find a July this slow.
Inventory Drops In The City, Rises In The Suburbs
Inventory is off of historic lows, but still remained relatively tight. TREB reported 13,868 new listings in July, down 2.13% from last year. The City of Toronto represented 4,511 of those listings, up 0.26% from last year. New listings fell in the suburbs, but made a minor increase in the city.
The total number of listings for sale also showed the opposite trend. TREB reported 19,725 active listings, up 5.19% from last year. The City of Toronto represented 5,479 of those active listings, down 3.87% from last year. Inventory is up in the suburbs, but lower in the actual city, compared to last year.
Last year’s wreck that was Toronto real estate is in the rear view mirror, but we still have a tricky read on direction. We’re comparing this month to numbers that were hit with an overreaction to policy changes. The policy changes made last July one of the worst in recent history. Beating it might not be the recovery sign it appears to be. Reporting the second worst July in a long time isn’t exactly a reason to celebrate, is it?