| Market Update

 

Market Heats Up for the Summer Season


This summer is proving to be hotter than last, according to the latest market report released by the Toronto Real Estate Board (TREB).

Greater Toronto Area Real Estate Agents reported 8,595 sales through the MLS system last month, marking a whopping 24.3% increase over July 2018. Sales were also up on a month-by-month basis, having increased 5.1% from June. While new listings were up by 3.7% year-over-year, active listings fell last month by 9.1% on a year-over-year basis.

Three out of four housing categories all recorded average price increases last month, driving the overall average selling price to $806,755, a 3.2% increase over July 2018. The average price for fully detached homes in the GTA fell by 0.9%; in the 416 region specifically, it fell by 9.1%.

“Broadly speaking, increased competition between buyers for available properties has resulted in relatively strong price growth above the rate of inflation for semi-detached houses, townhouses, and condominium apartments,” says Jason Mercer, chief market analyst for TREB.

“However,” Mercer continues, “the single-detached market segment, which has arguably been impacted most by the OSFI stress test, has experienced a slower pace of price growth, with average detached prices remaining lower than last year’s levels in some parts of the GTA.”

With more than a month to go in real estate’s busiest season, it will be interesting to see if detached homes will make a comeback or continue to be outpaced by the other segments.

Condo Market Shines Bright this Summer


The latest market report from the Toronto Real Estate Board (TREB) has been released, and it contains good news for the condo market. The average price of condo apartments last month rose by 7.7% in the 416 region and 3.2% in the 905 area on a year-over-year basis. Condo sales saw year-over-year increases, too, by 14.8% in the 416 area and 13% in the 905.

Those numbers, along with similarly strong performances by the semi-detached and townhouse categories, helped overall sales in the GTA increase by 24.3% over July 2018 and drove the total average selling price to $806,755, a 3.2% increase over July 2018.

“Broadly speaking, increased competition between buyers for available properties has resulted in relatively strong price growth above the rate of inflation for semi-detached houses, townhouses, and condominium apartments,” says Jason Mercer, chief market analyst for TREB. The same cannot be said for detached homes, however. The average price of a detached home in the 416 region fell by 9.1% on a year-over-year basis.

Says Mercer, “The single-detached market segment, which has arguably been impacted most by the OSFI stress test, has experienced a slower pace of price growth, with average detached prices remaining lower than last year’s levels in some parts of the GTA.”

So long as the OFSI stress test remains in place, the condo market represents the last vestige of affordability for buyers desperate to enter the market. But with limited supply driving prices higher, it will be interesting to see how the category is affected.

How do these numbers affect you? Would you like to know what your home is worth in today’s market? Please contact us today at Hello@ChristineCowern.com or 416-291-7372.

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