A new month means a new market update! Here is what you need to know about Toronto’s housing market for this past July:
This summer is proving to be a record-breaking one! This July, there were 9,898 home sales on the MLS –the highest number for any July on record. Although the sales were high, they would have been even higher if the demand for homes was being met. Currently demand greatly outweighs supply.
Comparing July 2016 to July 2015:
- Average resale GTA home price: ↑ 16%
- Home Availability: ↓ 7% (approximately)
- Detached homes: Sales ↑ 1%
- Semi-detached homes: Sales ↑ 1%
- Townhouses: Sales ↑ 9%
- Condominiums: Sales ↑ 2%
Toronto’s Condominium Market
Condominiums are springing up everywhere in Toronto but supply is still short. In this year’s second quarter, 7,731 new condo apartments sold in the GTA – a 26 per cent increase from last year. Although this number is high, it would have been even higher if the supply was able to keep up with demand.
The price for new condominium apartments is up only 2 per cent from the previous year, while resale condominium prices are up 10 per cent. More people are searching for condos with large square footage and more bedrooms. Sales of smaller units dropped over the last five years, while the sales of two and three bedroom units increased over the same period.
Could We Be Affected By Vancouver’s Market?
The British Columbia government imposed a tax this week aimed at foreign nationals purchasing investment properties in the Metro Vancouver area. This 15 per cent tax is intended to improve their housing affordability and deter foreign investors – which could have a noticeable effect on Toronto’s market. Experts caution that the tax may drive Toronto home prices up even further with investors turning to Toronto to park their money instead.
So far this year, there have been 70,098 home sales and 11,346 active listings on the MLS. Households are confident about purchasing a home now more than ever. This is due to strong labour market conditions, above-inflation average income growth and low borrowing costs.
If you would like to purchase a property in the GTA or are looking to sell yours – I would be happy to offer my knowledge and experience to guide you through the process. Now is an excellent time to make a move!