Toronto’s real estate market is no doubt at its height.
The Toronto Real Estate Board released their June Market Report which detailed some solid numbers across the board.
Home sales in 2016 vs. 2015
With numbers like these for 2016, it’s safe to assume that the rest of the year could look strong for real estate agents looking to increase their commission potential and satisfy a need for housing.
But be warned, the trend is also showing that the number of new listings was down 3.8 percent.
The average home sale price this year is sitting in the range of $1.28 million compared to the national average which sits at $782,051.
With real estate prices soaring in cities like Toronto and Vancouver, the federal decided it was time to “put their foot down” so to speak.
As of this year, Canadian Finance Minister Bill Morneau increased the minimum down payment amount for homes over $500,000 to 10 percent. Homes valued under $500k are only required to put down five percent.
Toronto Home Prices Increasing, Inventory’s Slowing Down
Remember when we warned real estate agents that the amount of new listings was down 3.8 percent?
The reality of low inventory is all too real.
RE/MAX Realtron Realty Agent, Suzana Davies, explains that the increased number of new Canadians and Syrian refugee programs within the city of Toronto is causing the impact of the city “splitting at the seams for shelter”.
“Not only are the prices of homes rising so too are rental prices which is driving more investors to buy up property” says Suzana.
And while homes seem to be flying off the shelf, the city doesn’t seem to be able to supply the growing demand.
Senior Vice President Sales - Sotheby’s International Realty Canada, Richard Silver provided some more insight into Toronto’s real estate market.
“Toronto has been increasing in size but is running out of land so the city has been increasing in height” says Richard.
“Condos have taken over as the most active part of the marketplace, however the main price increase have been in single family homes and build-able land. I expect this to continue as there are few signs to the contrary.”
June 2016 Average Sales and Price By Home Type
Only time will how or even if Canada's federal mandate to regulate down payment on houses over $500,000 will help to reduce the swelling of housing prices in both Vancouver and Toronto.
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Until next time...