Taking a House Hunting Summer Vacation? Think Again

Taking a House Hunting Summer Vacation? Think Again

On this past Saturday at 7 am , which was the longest day of the year, we moved into the summer solstice for 2014.   Yes, I know we have had a few false starts with a couple of warm days and seeing high school students celebrating their graduation proms, but now it’s official.

Traditionally, we experience a definite change in our Toronto real estate market as we see:

  • Fewer active buyers
  • Not as many multiple offer situations
  • A drop in the number of homes for sale
  • And half of  the Toronto real estate agents head to the cottage for the summer

But for those who are truly market savvy, the summer housing market can be a real a great opportunity to sell or buy a home.  In working over the months of June, July and August with my clients we have made some of our best deals during the summer months.

Lets have a look at the 5 years trend line for the average sold prices monthly in the City of Toronto.

In this graph you get an excellent visual perspective of how truly cyclical out Toronto housing market is.  The summer real estate market has experienced a real slow down for the past four years and I would expect the summer of 2014 to be no exception.

You can see that the average sold price for a home in the months of June, July and August drops anywhere between 10 and 15 percent from what housing prices were earlier in May.

Toronto Average House Price

 

 

 

 

 

 

 

 

Along with a drop in average house prices the other key metric to follow is the impact on the days on market.  As we roll into the summer months of June, July and August once again we see a definite slow down in the market with homes taking longer to sell.

Toronto Housing Days On Market

The source of this data comes directly from the sold information as reported to the Toronto Real Estate Board (TREB) which includes houses and condominiums.   Now TREB is the largest real estate board in the country and in their statistics it include not only the City of Toronto but those of Durham, Mississauga, Markham, Brampton, etc.  So to accurately reflect the City of Toronto housing market I have only used statistics for Metropolitan Toronto and not the GTA.   It makes sense since if you are buying Toronto why would you not want to look at just the historical Toronto market conditions….in throwing every municipality in you skew the results.

I have noticed over the years that sellers and buyers in the summer months are much more serious about brokering a deal than what you find in the spring.

So avoid taking the summer off from you home search and if you will discover a very different part of our Toronto housing cycle.

Everything is timing.   This summer a staycation might just be the best time to find the perfect home.

If you realtor is off at their cottage maybe it’s time to take a vacation from them.