Toronto Real Estate Market Watch 07/18
With June over and July wrapping up, we bring you this month’s market report with some happy news! Like we predicted in the last report, spring carried momentum across June to the end of July, which brought year over year positives to the market. It seems a balance has finally been achieved after the introduction of the mortgage stress test and other government regulating policies. Sales are picking up once again.
The average price of resale homes in Toronto — this includes detached, semi-detached, townhouses and apartments — rose 2% to $807,871 year over year, and 3.3% over May’s average price of $805,320.
There were also 2.4% more sales in June 2018 than June 2017 — a month over month increase of 17.6% after a preliminary seasonal adjustment. An interesting statistic is the difference in inventory between June 2017 to 2018, with low-rise home types accounting for a greater share of sales for June this year.
However, the biggest issue currently facing Toronto is the lack of supply across the city – new listings have fallen by 18.6% since last year. The market is currently being sustained by leftover inventory from slower months, and a strong, but steadily selling-off condo supply. If the inventory continues to fall, prices will be skyrocketing yet again, making homes even less affordable.
Today, the average price of a detached house in the GTA is $1,045,553. This is nearly double the average GTA condo price of $562,892. As such, many buyers are looking to high-rise living for an affordable alternative. These are buyers who, a few years ago, would have been in the market for single-detached houses or townhomes.
So, what does this all tell us? For one, June 2018 has shown a substantial increase in activity and pricing. We predict there will be continued growth as lack of product for buyers drives the price in the 416 areas. Multiple offers are still ongoing on affordable properties, even now, in what are supposed to be the “slow” months.
In addition, with immigration high (a projected +300,000 new Canadians each year), migrants from other parts of Canada moving to Toronto, birth rates up, and Ontarian’s expectations optimistic, there will continue to be a VERY strong demand for most properties.
We predict the city will not get smaller, but rather, it will continue to grow upwards with the increase of high-rises and condo production. Such pressure will keep the market active & prices high – don’t be fooled by the temporary “cooling” periods which usually follow government policies, waiting to sell or buy could make any gains negligible if sticking it out for years down the road.
The question, however, is what is affordable to gain or lose. A house in the 416 will be a higher price than a property in the 905, but you can lose hours a day commuting. What is the cost of lost hours? How can you learn to budget time against what is affordable?
These are questions we would love to help you answer and find solutions for. Our team is dedicated to finding your perfect home which fits your needs. Buy or list with us today, we’d love to help find a solution which works for you. Email firstname.lastname@example.org or give us a call at 416-699-0303 to learn more!
2018 Report – http://communications3.torontomls.net/statistics/mwatch/2018/06/mw1806.pdf
2017 Report – http://communications3.torontomls.net/statistics/mwatch/2017/07/mw1707.pdf