Friday, July 5, 2019 / by Sally Niu
The Toronto Real Estate Board released the June & Q2 2019 GTA real estate transaction data in its latest reports.
Interpreted intelligently, these statistics could provide invaluable insights to home buyers, sellers, tenants, and landlords alike. From determining your buying or selling strategies, adjusting timelines, to setting up realistic expectations, and predicting investment outcomes, these insights can guide consumers to act from an educated position.
Drawing on more than 50 years of expertise in real estate, Boiron Group summarized the two TREB reports into a bite-sized digest so you can be better informed of today’s market in no time.
TREB’s new president, Michael Collins, voiced his confidence in the GTA housing market.
”I am proud to say that the Greater Toronto Area continues to grow, in terms of employment, population, and overall density. As people are attracted to our region from all around the world, they obviously need a place to live. Over the next year, as demand for ownership and rental housing continues to grow, my hope is that we will see more movement from policymakers on two fronts: alleviating the constrained supply of housing and providing more flexibility around demand-side policies, including the OSFI two percentage point mortgage stress test and allowable amortization periods on insured mortgages”.
Housing Prices Continued to Rise
An average home in the GTA cost $832,703 in June 2019, rising 3% from June 2018, driven by higher density housing segments such as condominiums, townhouses, and semi-detached houses.
Sales Surged by double-digit, Unbalanced By Decreased New Listings
The overall residential sales surged by 10.4% year-over-year, going from 8,024 in June 2018 to 8,860 sales in June 2019. However, the rising demand was not matched by an expanded supply. The total number of new listings actually declined by 0.4% year-over-year, indicating a heightened competition between buyers, driving the price up as a result. Seasonal factors also contribute to a heated market in the second quarter, as more buyers became active in the spring.
As the unceasing demand for housing depletes the inventory in the GTA, many segments of the market experienced a renewed price growth. The only exception might be detached houses. Despite a wondrous 18.6% increase in sales, the average price of a detached home in the GTA dropped by 1.4%. Read the full TREB Market Watch Report Here.
Heated Rental Market in Q2 2019
The upswing in sales was met by an equally prosperous rental market. TREB’s Q2 Rental Market Report reveals a 14.9% increase in condo rental transactions, from 8,483 in Q2 2018 to 9,749 in Q2 2019. The total number of rentals could be more impressive, taking into account the leases signed off MLS - purpose-built rental apartments, houses, craigslist, and kijiji. The rent for a 1-bedroom apartment in the GTA averaged $2,192/month, up 6.4% compared to last June’s $2,055.
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