June Sales Remain Strong

Record June Sales and Higher Prices in Toronto

June sales set records Toronto real estate

Real estate agents in the Greater Toronto Area reported 11,992 firm sales through the Toronto Real Estate Board’s MLS system in June,
2015. The June sales numbers reported represent a new record for the month of June for any year, and an 18.4 per cent increase over results in June, 2014.
The Greater Toronto area continues its strong economic growth with several factors contributing to a robust market in the many diverse local economic, ethnic and cultural bases that exist here. The GTA continues to receive worldwide acclaim as one of the best places to live and do business. As the population continues to grow, many people are taking advantage of the options that exist for home ownership in the area.

Average Sale Price up 12.3%

June sales prices were up strongly on a year over year basis in June, for all categories of housing types. The TREB MLS Home Price Benchmark increased by 8.9% per cent compared to June 2014. The average sale price increased by 12.3% per cent over the same period to$639,184.
Higher priced homes have accounted for a greater share of the total transactions in 2015 compared to last year. This is one of the primary reasons why the average selling price has increased at a
higher yearly rate than the MLS Composite Benchmark.
New listings edged upward a bit during 2015, as homeowners took notice of the incredibly strong growth in real estate prices, and are beginning to take advantage of large equity increases in their homes. Nevertheless, the June sales show that the yearly rate of sales growth continues to far exceed the overall growth in listings, meaning that there is still an imbalance with many willing and able buyers in the market who will continue to have difficulties finding a home that suits their preferences. As long as this imbalance in supply and demand continues, house prices will continue to edge ever higher.

Real Estate Market – Toronto

Record Breaking Real Estate Market in May, 2015

real estate market new homes
real estate market new homes

Local Toronto area real estate market records were shattered when the Toronto Real Estate Board reported 11,706 sales in the month of May, 2015, for sales activity processed through the TREB MLS system. Total sales were up by 6.3%  percent compared with the 11,013 sales that were reported in May, 2014.

The Toronto real estate market as a whole showed sales increases for all types of residential housing. There was a decrease in sales of detached homes reported in the city of Toronto, but this was more as a result of a shortage of listings, than anything else.
The record number of transactions in May, combined with a shortage in the number of homes available for sale, resulted in large price increases in all areas of the market. The Home Price Index (HPI) Composite Benchmark, a key metric that the real estate board follows,  was up by 8.9% percent compared to May, 2014.

Real Estate Market Average Price Up 11%

The average selling price for all types of homes in May, 2015 showed an increase of 11% percent over the previous year, reaching $649,599. There was a shift to higher priced, higher end homes, which further boosted average selling price.
Extremely tight market conditions, with detached homes, semi-detached homes, and both freehold and condominium townhomes showing the highest demand, resulted in surging prices throughout the Greater Toronto Area. No matter what part of the Toronto area, listings remained in short supply, and in the suburbs such as Mississauga, Brampton, and Oakville, there were bidding wars on many listings.

We predict that this frenetic real estate market activity will continue throughout the rest of 2015, barring any unforeseen shocks to interest rates or the economy in general. With more buyers than sellers in every housing type and price point, it would take several months of increased listings and fewer sales, to create a more balanced real estate market. Until that time, it seems the only way for real estate is up.

Toronto Real Estate Update for November

Toronto Real Estate Continues Upward Trend in November

A review of the Toronto real estate market shows that it continues its upward trend, with 6,519 residential transactions reported through the Toronto MLS system in November 2014. Results were up by 2.6% compared to November 2013 sales totals of 6,354 sales. From January through the end of November,  total sales reached 88,462 – an increase of 6.6% compared to the same period last year.

While sellers enjoyed year-over-year sales increases, the number of active listings continued to be smaller than expected, with available listings at November’s end down compared to last year.

The Toronto Real Estate Board (TREB) issued a statement that despite the constrained supply of homes for sale, buyers continue to purchase properties with enthusiasm. Home ownership remains an attractive option, as monthly mortgage payments are relatively affordable compared to market rental rates. This combined with the fact that Toronto real estate has proven to be an attractive  long-term investment.

Average selling price of $577,936 for November 2014 transactions versus November 2013 was up by 7.4%. The year-to-date average price was up by 8.4% to $567,198.

The strong price growth in Toronto real estate as seen throughout 2014 has been built on a solid foundation, with demand high relative to supply. The triple market drivers of 1.) continued low interest rates 2.) continued immigration into the Greater Toronto Area, and 3.) continuing good economy with ongoing job creation, continue to fuel the ongoing healthy local market. Ongoing competition between prospective buyers has created strong upward pressure on prices – and all these trends appear to be continuing. Unless there is a major shift in the ratio of  sales and listings in the Greater Toronto Area, which we do not foresee, rising prices are expected to continue into 2015. Even though prices are at historic highs, the pressure and desirability of home ownership seems to be unabated, and we think that is a good thing for the local Toronto real estate scene, and indeed for the whole Canadian economy.