The Toronto & GTA Real Estate market just saw a major jump. The Toronto real estate statistics released by the Canadian Real Estate Board for this summer show a major upswing when it comes to housing sales. The increase is drawing even more attention to one of Canada’s top cities for Real Estate investment. In fact, Toronto has earned the title of making Canada’s biggest gain in home sales this year.
If you have any questions about the statistics presented in this article or about Toronto & GTA real estate in general, look no further than Frank Leo & Associates headed by the #1 Individual RE/MAX Agent in the World* for the answers. Contact us to have your questions addressed.
Toronto has seen an increase in homes sold this summer compared with the same time last year.
By the numbers, that means a 2.4% increase compared with last year’s numbers for June 2017. In Total, we’ve seen 8,082 homes sold through the Toronto Real Estate Board’s Toronto MLS Listing System, as reported by Greater Toronto Realtors® in June 2018. Between May and June of 2018, the sales are up 17.6% on a monthly basis.
In terms of average selling price, it’s edged up by 2% on a year-by-year basis. By June 2018, the average price of a home sold in Toronto reached $807,871. Between May 2018 and June 2018, the average home price jumped up by 3%, a considerable change for the market (after preliminary seasonal adjustment).
On a year-over-year basis the MLS® Home Price Index (HPI) went down 4.8%. However, it stayed more or less the same in terms of month-over-month change. Changes to the amount of different types of properties which were sold between June 2017 and June 2018 is one of the reasons that can account for the differences in the average price and the MLS® Home Price Index (HPI), year-over-year. In June 2018 low-rise homes accounted for a larger share of home sales, for example.
Jason Mercer, The Toronto Real Estate Board’s Director of Market Analysis and Service Channels, expects to see, “improvements in sales over the next year.” In the same statement he has indicated that it is likely that the number of new listings posted each month will also stay more or less consistent.
What does that mean for the market?
It could mean that the competition between buyers which is characteristic for the Toronto & the GTA real estate market could actually increase. The cumulative effect of that competition is likely to drive Toronto Real Estate Prices up even higher.
Although these changes are largely positive for homeowners seeking to sell property in Toronto & the GTA, these changes to the Toronto Real Estate market can be accounted for by recent policy changes over the past year which have affected home buyers. These include adjustments to the Fair Housing Plan, the now-mandatory stress test, and higher costs of borrowing.
Garry Bhaura, President of the Toronto Real Estate Board, suggests that these conditions are starting to move more real estate buyers back into the Toronto real estate market.
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* Dollar Volume 2017
** For Dollar Volume January – May 2018