Week 176: Inflation Down but Activity Still Sleepy – A Mid-Summer Update

The Toronto real estate market is experiencing a typical summer slowdown as we reach mid-July 2023. Sales across all property types have remained seasonally steady despite higher interest rates. This seasonal dip is normal even in more active summers like 2022, when rates were lower. See for yourself here.

The latest inflation report brought some optimism, with the headline rate dropping to 2.8% in June from 3.4% in May. However, core inflation still sits at 3.52%, down 11.09% from May and a full 35% lower than last year. To reach the 2% target, we need this core rate to decrease further. So while 2.8% sounds promising, more progress is required.

So what should Buyers & Sellers do now? 

It’s easy to get paralyzed by market uncertainty and fears that prices could plummet. But for most buyers, real estate decisions are lifestyle-driven. Regardless of market conditions, people will continue buying and selling to get into better school zones, be closer to amenities, or simply upgrade space.

Timing the market is unrealistic.

What matters most is your reason for moving, not short-term fluctuations. Once settled, market trends are largely irrelevant unless facing major rate hikes that impact affordability.

We’ve experienced the bulk of increases already, so future hikes (if any) will be almost irrelevant to most buyers and sellers.

The upcoming fall season will offer a true test, with mortgage hikes potentially concluding and activity picking up again. But for now, maintain focus on your lifestyle goals first when considering a real estate transaction. Tuning into economic noise can breed unnecessary anxiety.

The takeaway – the Toronto market is travelling its usual summer path. Inflation may be improving but hold skepticism until core rates drop further.

For buyers, keep perspective on your reasons for moving. And know that market timing is an unreliable strategy.

And if you’d like to book a call to discuss your specific real estate needs, you can do that here, and I really look forward to helping you.

Have a wonderful day, and I’ll see you next week. Don’t forget to subscribe to the blog so you get this in your inbox asap, and we’ll see you on Youtube!

(please subscribe to the YouTube Channel here, where I go over all of these reports in more detail)

Urban Markets: Downtown & Surrounding Areas
House Average Price: $1,519,609
House Median Price: $1,332,500
520 Active Listings
46 Firm Sales This Week
Months of Inventory (MoI) 2.27 (down from 2.37 last month)
Average Days on Market 10.63

Condo Average Price: $817,945
Condo Median Price: $724,150
2127 Active Listings
96 Firm Sales This Week
MoI 3.77  (up from  3.16 last month)
Average Days on Market (DOM)  18.8

Urban North: Rosedale, Deer Park, Moore Park, Forest Hill, & Lawrence Park
House Average Price: $3,637,333
House Median Price: $2,310,025
134 Active Listings
6 Firm Sales This Week
MoI ~3.15 (down from 3.47 last month)
Average Days on Market ~ 25

Condo Average Price: $1,070,250
Condo Median Price: $1,185,000
233 Active Listings
8 Firm Sales This Week
MoI 4.01 (up from  3.99 last month)
Average Days on Market ~ 21

Leaside, Davisville, Yonge & Eglinton
House Average Price: $1,828,751
House Median Price: $1,791,250
43 Active Listings
6 Firm Sales This Week
MoI ~ 1.45 (down from 1.57)
Average Days on Market  14

Condo Average Price: $878,000
Condo Media Price: $785,000
153 Active Listings
8 Firm Sales This Week
MoI 2.48 (up from  2.32 last mth)
Average Days on Market ~ 16

Birch Cliff
House Average Price: $928,750
House Median Price: $871,000
37 Active Listings
4 Firm Sales This Week
MoI 1.88 (up from 1.63)
Average Days on Market ~14.25

Kingston Rd Corridor to Highland Creek
House Average Price: $1,345,714
House Median Price: $1,222,500
93 Active Listings
9 Firm Sales This Week
MoI 2.30 (up from 2.14)
Average Days on Market ~ 19.64

Condo Average Price: $511,000
Condo Median Price: $458,000
56 Active Listings
2 Firm Sales This Week
MoI 2.36 (down from 2.46)
Average Days on Market ~ 36.67

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