Week 198: Here’s how recent inflation news will affect the Toronto Real Estate market

A huge misconception when interpreting real estate data is when the days on the market (dom) stat increases in an area, some immediately assume that the market is turning and properties are taking longer to sell.

In reality, some properties always take longer to sell. Even longer when the market is well-supplied and buyers have loads of choices.

But the DOM stat also bumps up in times of changing supply on the other end of the spectrum.

As supply pulls back, buyers don’t have as much choice and scoop up existing supply as their options are limited.

That’s when sitting inventory starts to move, and DOM goes up as aged supply is marked sold.

Now, don’t get me wrong. I’m not saying we’re experiencing some aggressive seller’s market, but we may see increased buying activity over the next month or so.

However, today’s somewhat disappointing inflation news may have another plan for us. Most expected to dip below 3% for the first time, but we held steady at 3.1%, ironically mainly due to the increased cost of mortgage insurance and rents. So…as a colleague said to me this morning, “If you remove real estate from the mix, we may even have some deflation!” I’m kidding, of course, as it’s not that simple.

Anyway, I don’t think consumers in general, react as much to inflation news as they do to interest rate news but here we are and only time will tell what the future holds, but today, and every day ahead will be better than the last so that’s something to feel great about.

Happy Holidays and Merry Christmas to those who celebrate. I’ll see you next Tuesday for week 199 🙂

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Urban Markets: Downtown & Surrounding Areas
House Average Price: $1,693,746
House Median Price: $1,308,000
435 Active Listings
37 Firm Sales This Week
Months of Inventory (MoI) 2.32 – DOWN from 3.15
Average Days on Market (DOM) 36.01

Condo Average Price: $1,235,111
Condo Median Price: $702,000
2074 Active Listings
55 Firm Sales This Week
MoI 4.49 – DOWN from 5.11
DoM 37.46

Rosedale, Deer Park, Moore Park, Forest Hill, & Lawrence Park
House Average Price: $3,434,310
House Median Price: $2,905,000
135 Active Listings
7 Firm Sales This Week
MoI 3.93- DOWN from 4.58
DoM ~ 31.8

Condo Average Price: $1,202,100
Condo Median Price: $790,000
236 Active Listings
9 Firm Sales This Week
MoI 4.79 – DOWN from 5.21
DoM 28.44

Leaside, Davisville, Yonge & Eglinton
House Average Price: $2,428,286
House Median Price: $2,500,000
38 Active Listings
7 Firm Sales This Week
MoI: 2.18 – DOWN from 2.89
DoM 37.14

Condo Average Price: $780,000
Condo Media Price: $780,000
164 Active Listings
8 Firm Sales This Week
MoI 3.67- DOWN from 4.24
DoM ~ 27.5

Birch Cliff
House Average Price: $1,002,500
House Median Price: $1,002,500
23 Active Listings
1 Firm Sales This Week
MoI 1.87 – DOWN from 2.14
DoM 16

Kingston Rd Corridor to Highland Creek
House Average Price: $967,600
House Median Price: $922,000
89 Active Listings
2 Firm Sales This Week
MoI 3.06 – DOWN from 3.42
DoM 23.2

Condo Average Price: $557,333
Condo Median Price: $537,000
74 Active Listings
3 Firm Sales This Week
MoI 3.61 – UP from 3.23
DoM 29

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