Well, the dog days of summer are upon us once again, and the Toronto market is taking a small breather as both buyers and sellers enjoy the wonderful weather. Prices in July fell by about 5% versus the previous month, following the normal seasonal pattern; however, they remain about 16% higher than last year, which we have seen every month since April. The inventory of homes for sale also crept upward slightly in July, to just above one month’s supply, but remains well below levels seen at any time in the past two years. Bidding wars and bully offers remain plentiful.
So, no-one should be fooled into thinking that the July ‘slowdown’ is anything more than a seasonal blip. The Toronto market remains on a manic upward trajectory and, while the summer doldrums may persist into August, all signs point toward an explosive fall market. The recent imposition of a 15% tax on non-resident buyers in Vancouver can only feed the flames, as it will undoubtedly encourage more foreign buyers to look to Toronto instead of Vancouver.
Clearly, the present market trend is unsustainable, and the exponential shift that we have seen this year hints that we might be nearing the end of the trend… but, barring an appearance from some sort of black swan, it’s not likely to happen this year.