Tuesday, August 13, 2019 / by Sally Niu
This is a hot summer for the GTA Real Estate Market. In the recently released Market Watch Report, the Toronto Real Estate Reported its fourth double-digit growth in home sales since April 2019.
Interpreted intelligently, these statistics could provide invaluable insights for 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 TREB reports into a bite-sized digest so you can be better informed of today’s market in no time.
Home Sales Increased by 24.3% Year-over-Year
Apparently, GTA homebuyers have not been deterred by the July heat. The Toronto Real Estate Board reported 8,595 residential sales in the month of July 2019, a 24.3% year-over-year increase compared to July 2018. The surge in sales was seen across the board in all four major housing types, with semi-detached houses leading the pack at an exponential 42% growth. On a month-over-month basis, the aggregated home sales were still up by 5.1%, after preliminary seasonal adjustment.
Buyer Competition Heightened
The competition between buyers in Toronto’s real estate market continued to intensify in the past month. Compared to the 24.3% increase in sales activity, there is only 3.7% year-over-year increase in the number of new listings in July. To make matters worse, the number of active listings has dropped by 9.1% compared to July 2018, as more sellers have been holding back.
Strong Price Growth Observed Among Higher-Density Housing Types, As Detached House Prices Fell
This widening gulf between supply and demand has been acting as a catalyst for the overall price growth in GTA homes. In July 2019, the average selling price racked up at $806,755, representing a 3.2% increase from last July. The price growth rates are double or triple of the current inflation rate of 2.0% among semi-detached homes, townhouses and condominium apartments. The only exceptions are detached houses. In the Toronto proper, the average selling price of a detached home fell at a jaw-dropping 9.1% rate. After offsetting by the 2.5% price appreciation of its counterparts in the 905-area, the overall selling price of detached homes still suffered a 0.9% downturn.
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