July was an extremely busy month for the Toronto real estate market, and all of the factors highlighted the “hot” market we are experiencing.
With the total number of sales YTD being up 10.7 % over last year and the number of homes available for sale down 9.1%, multiple offer situations and homes selling at asking price or over and quicker were and are the natural result.
There has been a much stronger price growth in the semi-detached, townhome and condominium apartment segment than the above average numbers indicate. Those numbers have been greatly reduced by the detached home market segment, which has been impacted the most by the OSFI stress test. Detached homes over $2,000,000 have experienced a slower pace of price growth, with average detached prices remaining lower than last year’s levels in some parts of the GTA. This segment represents a great opportunity to trade up for some and a chance for others to move back into the city if they can accommodate the mortgage stress test.
The rental market continues to be strong and investors continue to purchase preconstruction condominiums for the rent and long term capital appreciation. In response to increased construction prices and in an effort to stay affordable, builders are bringing out smaller units between 350 - 500 sq feet in size, and these will be grabbed up quickly due to their price range. Once again, no surprise, we are just following what has happened in other major cities around the world.
If you are considering buying or selling, or know someone who is, please give us a call, We would love to help and put our knowledge and experience to work for you.
Have a great August!