Real Estate Market Report: Strong Sales in July 2013

Real Estate Market Report: Strong Sales in July 2013

Greater Toronto Area REALTORS® reported 8,544 residential sales through the TorontoMLS in July 2013, which is 16 per cent more than the year before. The sales in July 2013 are the best July result since 2009 and the third best July result ever.

Toronto Skyline by Leander Canaris

The average selling price increased by 8 per cent on a year-over-year basis, to $513,246. The driver of the overall price growth is still the low-rise market segment.

“We are forecasting continued average price growth for the remainder of 2013 and through 2014 as well. Months of inventory for low-rise homes remains near record lows, suggesting that sellers’ market conditions will remain in place in the second half of 2013. An increase in listings in 2014 would lead to more balanced market conditions and a slower pace of price growth next year, albeit still above the rate of inflation”,

said Jason Mercer, TREB’s senior manager of market analysis.

City of Toronto

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The sales of semi-detached houses rose by 28.8 per cent year over year to 340 units. Big demand for this type of housing resulted in an 11.1 per cent selling price rise compared to last year. The average selling price was $584,499.

Detached houses were the second most preferred housing type in July 2013, with 986 sold units. This is 20.7 per cent more compared to July 2012. The average selling price was up 6.5 per cent year over year, to $793,842.

In the townhouse category, 351 units sold last month, which is a 12.5 per cent growth compared to last year. The average selling price increased by 8.8 per cent to $452,167.

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Due to fears of a possible condo market crash, the average sale prices in the condo apartment category didn’t experience a lot of changes over the last year. In July 2013, though, the average sale price rose 4.1 per cent to $361,969. Even though the sales rose 10.6 per cent to 1,353, there is still a great number of condos left for sale.

“The GTA condominium apartment market has been the subject of much discussion recently, due in large part to the number of new units completed over the past two years and the number of units that remain under construction. With this in mind, it is important to point out that the condo market has fared quite well. Even with sales down and the number of active listings up, the average selling price has found support at current levels”,

said Toronto Real Estate Board president Dianne Usher.

Greater Toronto Area

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The average property prices have risen in the Greater Toronto Area as well, but that didn’t result in a lower volume of sales. Sales went up in all property categories.

“Despite recent increases in average borrowing costs, homebuyers are still finding affordable home ownership options in the GTA. We are a year removed from the onset of stricter mortgage lending guidelines and many households who put their decision to purchase a home on hold have reactivated their search. An increasing number of these households are getting deals done”,

continued Usher.

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Semi-detached properties were the favourite in the GTA as well. Sales in this category rose by 26.40 per cent on an annual basis, to 957 units. The average price in this category was $476,134, which is 8.7 per cent higher than last year.

Over the last month 4,129 detached properties sold in the GTA. This was a 20 per cent growth compared to last year. The average price went up by 7.6 per cent, to $644,313.

Townhouse sales rose by 9.1 per cent to 1,384 units in a year-over-year comparison. The average price was $397,901, which is 7.1 per cent more than in July 2012.

Condo apartment sales were up by 10.5 per cent to 1,894 units last month. The average selling price rose by 3.4 to $338,854.

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