Market on the Rise | Market Watch
Posted By: Rachel Kavanagh
Market on the Rise – The market continues to become stronger and healthier as each month passes by. The month of August GTA Realtors reported 7,711 transactions, a 13.4% increase over the same period last year. To date, Markham leads York region in transactions with 2,493 and Vaughan is second with 2,298 transactions.
The average sale price for all home types in the GTA was $792,611, 3.6% higher than the same period last year, while month over the month the average sale price dropped by 1.75%. In Markham, the average sale price for a detached home was virtually flat, only decreasing by 0.4% to $1,228,445. In Stouffville, the average sale price for a detached home increased by 9% to $1,052,607.
The detached home market continues to garner the majority of transactions in the 905-area code. A total of 2,949 detached homes were sold in August with an average sale price of $918,242. Overall there was a 24.5% increase in sales and an increase of 1.3% to the average sale price year-over-year. 38% of all the homes sold during the month of August were detached homes from the 905-area code.
The condominium apartment segment continued to lead the way in terms of price growth, followed by higher density low-rise home types and finally detached homes. The ongoing interest increased the average sale price by 5.7% and sales by 2.2% when compared to August 2018.
Market conditions also became tighter in August when compared to a year ago because, while sales were up year-over-year, new listings were down by 3% over the same period to 11,789. Should sales continue to increase, and listings decrease, there will be less inventory to choose from. This lack of inventory will add pressure to sales prices and start driving it upwards.
The luxury market over $3 million operates at a level far different from the rest of the market. Since the beginning of the year, only 9 luxury homes have sold in Markham with the average sale price being $3,608,376, while 62 properties remain on the market. In Stouffville, there has still been no sale over $3 million, while 21 properties remain on the market.
What Does This All Mean?
The demand for detached homes has rebounded nicely in 2019 versus 2018 when there was little interest. The market continues to get stronger and healthier with each passing month signally that many Canadians are adapting to the country’s tougher mortgage stress-test rules. On September 4 the Canadian government decided to leave the interest rate unchanged, indicating that the Canadian government is still being cautious with all the unsettled trade negotiations. This poses well for those individuals looking to buy, as the lower interest rate will mean greater affordability for all.
As we enter into the fall market, the expectation is continued optimism for a strong end to a great 2019.
Market on the Rise 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.
