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City of Toronto Housing Market Back up this July

Written by Posted On Wednesday, 08 August 2018 09:11


Both sales and property prices in the City of Toronto are up this July and have rebounded from a difficult first half of the year,  reports the Toronto Real Estate Board (TREB). The average price for property in the 416 is now $824,336.


Appetites for purchasing property remains high and there are signs that prospective buyers are feeling increased pressure --- properties are selling in just 21 days, faster than the TREB average of 25 days.


“We have certainly experienced an increase in demand for ownership housing so far this summer,” says Jason Mercer, TREB’s director of market analysis.


This data makes it ever-more tempting to leave the Toronto altogether in search of more affordable cities in Ontario. Homes for sale in London, Ontario along with Ottawa real estate remain desirable options, with their strong job markets and detached homes available for well under the half- a-million watermark. There is now no property type in Toronto which averages under half a million. The least expensive property type is condos at $582,550, up 9.2 per cent year-over-year.


Detached houses are now going for more than double that, up 3.6 per cent from July 2017 to $1,350,700. Semi-detached homes are up 7.4 per cent to $935,300, while townhouses are up just 1.5 per cent to $718,700.


Condos are showing the fastest price growth likely because it’s all buyers can afford under the new tighter lending rules and stress-testing put in place January 1 of this year by OSFI, the federal bank regulator. Buyers must now qualify for a mortgage at least 5.34 per cent, or seek a credit union or private lender.


Any lingering effects of the cool-down imposed by the Ontario Fair Housing Plan announced in April 2017 appears to have waned.


“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,” Mercer says.


Indeed, although sales had plunged earlier this year, causing a flurry of media to post panicked headlines erroneously accusing the “bubble of bursting,” sales have now returned to exceedingly positive territory.


Sales for detached houses are up 28.3 per cent, semi-detached houses up 6.1 per cent, townhouses up 21.9 per cent and condos are up 9.4 per cent.


Prices and sales are likely to persevere upwards for the remainder of 2018.


“Home buyers in the GTA recognize that ownership housing is a quality long-term investment,” Mercer says.


Check out our infographic for all the details.

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