Both sales and property prices in the 905 are up this July and have rebounded from a difficult first half of the year, reports the Toronto Real Estate Board (TREB).
Compared to the rest of Canada, Toronto real estate prices remain lower than the stratospheric levels of Vancouver MLS listings, but higher than the more moderate prices in Calgary.
Detached houses are the only property segment to show negative sales growth, down a tiny 0.2 per cent to about $907,350 from July 2017. Semi-detached houses are up 3.4 per cent to $658,530 while townhouses showed slightly greater growth, up 4.6 per cent to $608,000. Condos remain the standout market segment of the year, with the only property type showing double-digit growth at 10.3 per cent to $461,255. This is likely because it is the least expensive property segment and all that buyers can afford under the new tighter lending rules and stress-testing. Buyers must now qualify for a mortgage at least 5.34 per cent.
The reason for the overall market rebound is likely due to buyers and sellers overcoming the uncertainty they felt after government intervention in 2017, felt necessary by some after runaway growth over the past decade.
“We have certainly experienced an increase in demand for ownership housing so far this summer,” said Jason Mercer, TREB’s director of market analysis.
“It appears that some people who initially moved to the sidelines due to the psychological impact of the Fair Housing Plan and changes to mortgage lending guidelines have re-entered the market.”
The biggest difference this July is not seen in growth, but in sales. Earlier this year the 905 was posting plunging sale numbers, sometimes down as much as 30 per cent from the year previous.
Well, no longer.
Sales are now robust. Sales for detached homes are up 26.8 per cent, semi-detached up 1.7 per cent, townhouses up 19.4 per cent and condos up 19.1 per cent.
Prices and sales should continue their upward trajectory for the rest of 2018 as long as supply levels remain as low as they have been and interest rates remain moderate.
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