Toronto is currently experiencing strong growth in sales across all segments in the entirety of the GTA. In July 2018, Toronto Realtors managed to sell 6,961 homes, which is 18.6 per cent more than last July.
Summer market was traditionally a slow one in Toronto. Most sales were completed either before or after the summer holidays. But not even the heatwave could stop the numbers this year. Townhouses were the new, popular segment in the city, with 21.9 rise in numbers in year-over-year comparison. Detached homes were always popular, this month even more with 28.3 per cent more home sales in the segment. Semi-detached homes and condos rose by 6.1 and 9.4 per cent respectively across GTA.
It seems that all the buyers that got stumped by the new government policies in the last month, jumped into the market with a new appetite. Active listings are currently in the 5.2 per cent rise, but new listings are falling again (by -1.8 per cent), which is reflected in the average price as well.
Overall average price for all segments was $782,129, which is 4.8 per cent more than last July. The biggest climb was noticed in the condominium segment, with 8.9 per cent change. Second came semi-detached homes with +6 per cent and then townhouses with +4.1 per cent change. Detached homes had a very minor rise by 0.5 per cent.
We can only guess, if the high sales during summer months mean that the market is shifting from it's usual seasonality, or that the fall will be picking up the pace even more. But an overall good advice for potential buyers is to start looking at your dream house now, until it gets even crazier with multiple offers and bidding wars left and right.
Richard Silver, Sales Representative, SVP-Sales
For the second month in a row, the statistics from the Toronto Real Estate Board show increases in both price and activity over last year. This is great news but not surprising as the Liberal Government's Fair Housing Policy threw a lot at the marketplace in one bill and it was a shock to the 2017 market.
It has not solved the major problem that has pushed the prices up in the Greater Toronto Area. Again and again, we hear that the issue is lack of product and last year's act did not address the shortage at all. If anything, bringing back and extending rent controls has probably exacerbated the issue.
Increasing market and prices will not slow until the Provincial and Municipal find a way of streamlining building codes and releasing land at greater rates. An ongoing 80,000-100,000 net immigration to the region must be met with more product. The process is too slow and costly and must be addressed to relieve the pressure, otherwise, we will soon be "Manhattanized".
Rizwan Malik, Sales Representative, SVP-Sales
The numbers speak for themselves but the pulse on the ground is very different. While some properties are getting multiple offers and selling over-asking others are sitting on the market. The condo market is still very different than the freehold market. Tougher lending policies have forced purchasers to try and stay under the $1 Million dollar mark. Many buyers are unable to meet the 50% downpayment required for a purchase of over one million. This is another reason why prices in the freehold market have softened as compared to condominiums. Another key thing to note about our real estate landscape is the rental market. Units for lease are not staying on the market for long, in most cases just a day or two and are renting with multiple offers and well over the rental rate. Again, this is a tough market to navigate but we are confident in our ability to help our clients succeed.
Jim Burtnick, Broker, SVP-Sales
The real estate market and its participants are "normalizing":
Buyers are getting used to the new mortgage qualification rules and becoming active in the marketplace.
Sellers are beginning to realize that the market dynamics and values have altered since the frenzied peak over a year ago and this now is the new normal.
And the seasonality of the real estate marketplace has returned, with a slower season in the summer months as people take well-deserved vacations.
Expect the market to continue to gain momentum as we move into the autumn (as projected by TREB in their 2018 Real Estate Market Forecast), as the lack of supply is the real driver of the continued price appreciation we will see in the future.
If you are considering buying real estate, I would strongly recommend actively seeking your ideal home NOW, before you will be competing with many more buyers returning from holidays in a few short weeks (zig when everyone else is zagging).
If you are serious about selling, best to get your home in tip-top showing shape (we can help you here) and being at the front end of the autumn selling season (before you are competing against more listings in your neighbourhood).