This July Is Hot Hot Hot!
Why is the July market so hot? That’s the question on everybody’s mind – buyers, sellers, agents, and a host of economists and columnists who are scrambling to figure out why the real estate market isn’t on vacation this summer.
Historically speaking, the real estate market in the GTA drops off significantly in the month of July. There are usually fewer new listings and fewer sales than in other months.
But if the first two weeks of July is any indication, we’re going to see a very busy month ahead, perhaps even extending into August, which isn’t typically a great month for a seller to list.
There were 10,180 sales in June of 2014, compared to 8,821 in June of 2013 – an increase of 15.4%. New listings, however, were up only 8.2% in that time period.
I believe a very harsh winter had a huge effect on our real estate market. There were a lot of appointment cancellations because of huge dumps of snow and plummeting temperatures. There were fewer sales in January 2014 than January 2013 and the increases in sales in February and March were modest. There were also fewer new listings coming out every single month this year than in 2013 (except for March, which had 1.4% more new listings come out than March 2013). But there doesn’t seem to have been a decrease in demand.
These details tell me that the buyers who are left over from January, February, March, April, May, and June are still looking for a property. Given that the fall market is usually quite a busy one, I would hazard to guess that many buyers currently out there now would rather buy in the summer than risk dealing with multiple offers come the fall.
I doubt very much that there will be a vacation from the real estate market this summer. Don’t expect that the summer market is on hiatus. If you are looking for a property, ensure you have an agent who is actively working and remaining diligent on your behalf. If you need help, I am working this summer and am always happy to be of service.