Toronto real estate prices are kind of wobbly, and social media has been filled with claims that places are selling substantially under ask. We thought we would look through TREB sold numbers, to see if there’s any truth to this claim. Looking at last week’s sales from Sept 2 – September 8, yes ask prices are softer than they were last year. However, they’re probably not soft enough to start screaming from the rooftop.
September 2016 Saw Sale Prices 104% of Ask
Last week’s sold to ask ratio is down from last year. In September 2016, the average sold to ask price ratio was 104%. This means homes were selling for 4% more than buyers were asking for on average. Last week’s sold data shows that sold homes fetched an average of 98.78% of the asking price, and had a median ratio of 98.33%. The average sold price shaved just over $13,600 off of the average sticker price last week.
Homes Between $750,000 – $1 million Are Going Over Ask
Not all price brackets are created equal. Homes sold with an ask price in the range of $750,000 – $1,000,000 fetched an average of 100.5% of sticker. Homes asking for less than $500k also fetched 99.28% of ask. Agents are either pricing the homes sold in this range perfectly, the buyers aren’t hagglers, or there’s still competition in these price ranges.
Sold To Ask Is Tapering Above $1,000,000
Above a million, the sale price to ask tapers much more substantially. In the $1,000,000 – $1,500,000 range, the average sold to ask is pretty close with a ratio of 98.15%. In the $3,000,000+ price range, the average sold to ask ratio is only 91.49%. The latter was only two sales last week, so don’t draw too many insights yet. However, the average of the discounts on those two sales worked out to $247,500 under ask – which is nothing to sneeze at.
Some agents are saying everything is still booming, and bears are saying the sky is falling. As always, the truth is somewhere in the middle, and we just wanted to give you a few data points. This isn’t a comprehensive analysis of sold to ask prices, but a starting point for discussion. We’ll add a price reduction analysis over the next few days, that will help with context.
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