The Current Real Estate Market: July Trends and Predictions for Fall

The Downtime of Summer

Entering the heart of the summer season, we find ourselves in a traditionally slow period for real estate markets. Not many exciting developments tend to happen during this time frame, but deeper knowledge of this leisurely period can help us identify underlying patterns. This post's objective is to provide valuable insights regarding what occurred at the end of July, preparing us for what we might expect as we navigate through the summer and approach the changing seasons.

Days on Market: An Expanding Trend

One obvious observation many people have made is the increasing length of the days on the market (DOM). The DOM stretched from 20 days in June to 24 days in July, marking a significant 40% increase compared to last year's figures. Such an expansion generally happens during the summer months, primarily due to people focusing more on vacation and less on property dealings.

During August, the buyer demographic is typically reduced to about 20 to 30%, extending DOM even more. It's critical to understand these shifts as the real estate world moves.

Price Negotiations and Sales

In June 2024, the average property price was roughly $1.162 million. The price dropped marginally by the end of July to stabilize just above $1.1 million. The increasing DOM opened up more room for negotiation, leading to slightly falling prices.

Nowadays, it is quite ordinary to see properties selling conditionally. Further, many listings hitting offer dates fail to sell, resulting in frequent re-listings—a common event in this time of the year. 

Transaction Statistics and Inventory 

Total transactions for July were just under $5,400, falling from the $6,200 figure from June. As summer progresses, people downshift from work mode, diminishing real estate transactions, and increasing inventory. However, while the inventory is approximately 20% more than the same time last year, it went down slightly from June— which stood at 17,964 homes— to under 16,300 homes in July. 

The Impact of Global Markets 

The ongoing discussion in the past few weeks brings attention to the impact of global markets on our local real estate scene. Although we can't predict exactly, we may have to see more than just a quarter-point adjustment in September to stabilize the market and help households struggling financially. 

Preparing for the Fall

If you're considering a move this fall, don't let these numbers deter you. Keep a close watch on the interest rates announcement in September. The outcome may favor buyers, leading to a normalized Toronto and GTA market. Also, remember the importance of pricing your property correctly in today's market. 

The control of this market remains largely in the hands of buyers. A shift into a brief seller's market might occur come fall if the Bank of Canada cuts more than a quarter point. For those looking to sell, the upcoming fall might present an excellent opportunity. Whether you're tired of spending winters shoveling snow or you want a change, the possibility of a small seller's market could be beneficial.

The Upcoming Downsizing Seminar 

As we approach fall, the Oathen Group is hosting a fascinating and informative seminar on downsizing—open for all, not exclusively seniors. Whether you're planning to move from a large house to a smaller one or transitioning to condominium living, this event will provide valuable insights. 

If you're considering such a transition and are feeling overwhelmed with decluttering, financial planning, legalities, or any other real estate-related concern, this seminar on October 3rd will allow you to gain insight from knowledgeable experts and ask pressing questions. You can register for the seminar here.