Another strong month of sales as Toronto realtors sold 8,491 residential homes through TREB’s MLS System in October 2019. Sales numbers were up 14% over the 7,448 sales reported in October 2018. Fewer new listings brought to market, a lower inventory of homes available for sale and continued demand drove the average price higher as it rose 5.5% to $852,142, compared to $807,538 in October 2018.
Several factors are impacting the increase in home prices. A strong regional economy fuels population growth. Foreign immigration continues unabated and Canada, and specifically Toronto, are attractive to foreign investors as we are politically and economically stable and prices compared to the rest of the world are low.
2017 and 2018 sales were softer as Toronto buyers took a breather from the hectic market of the previous years. They took a wait and see attitude as to how prices would react to the foreign buyer tax and the mortgage stress test the government imposed. We now have our answer, the market continues at a very strong growth pace.
The solution to the problem is not government interference, but supply of more homes. The land is available, the builders are available and ready to build, its just that government red tape slows the development and building process. The solution is streamlining the process and allow more inventory to become available. Hopefully they will get the message.
Yes, prices are increasing. Yes the market is hot. Yes, seemingly, it doesn’t matter who you list your home with. But it does! A house will sell itself, but the price you get is dependent on the agent you choose. Not all surgeons are equal, not all hairdressers or lawyers are equal, like real estate agents, some are better than others and are worth the money you pay them.
If you or your kids or a friend you know are considering buying or selling, give us a call.
Let us put our experience to work for you!