For the second month in a row the real estate market in the City Of Toronto continued its upward momentum with both higher sale prices and greater number of properties sold.
In May, 3,715 residential properties were reported sold in the City, a stunning 13% increase compared to the 3,284 that sold in May of 2018. The average sold price for a property came in at $937,804, a 7.9% from the same time last year when it was $869,555.
The increase in the average sale price was driven by an increase in the number of luxury homes that sold in May. This month 236 properties having a sale price of $2 Million or more were reported sold. That compares with the 173 that were sold in the City in 2018, a whopping 36% increase. A welcome boost for sellers in this category as over the past two years higher-end sales have been relatively dormant.
The recovery of the Toronto housing market is due to a number of factors. The mortgage stress testing rules introduced in January 2018 appear to have been absorbed by buyers. More resale properties have come to market, although still not enough to create a balanced market. And lastly, interest rates have edged downward, softening the impact of the new mortgage stress testing.
In May 6,648 new property listings came to market, a 4% increase as compared to the 6,392 that came to market last year. Unfortunately, the new listings that came to market were insufficient to effectively increase the supply.
At the end of May there were 6,039 properties available to buyers in the City Of Toronto, 4.2% more than were available at the same time last year. As the resale market moved into June there was only 2 months of inventory in the City of Toronto.
Not only did more properties sell in May with rising prices, but all sales took place quickly. All properties sold (on average) in only 16 days. Depending on the type of property and location, the speed of sales was even faster. For example, semi-detached properties in Toronto’s central core sold in only 14 days. In Toronto’s eastern districts they sold in only 10 days. Generally, it took much longer for properties to sell in the 905 region, ranging from 25 days in the Halton region to 36 days in Simcoe County. Sales in the York region took 27 days.
Condominium apartments continue to be the least expensive housing form available to buyers, although “least expensive” is becoming a relative term. In May 1,739 condos were reported sold in the City of Toronto. The average sale price for all condo units sold was $642,891.
In Toronto’s central core, where 63% of all reported sales were located, the average sale price came in at an eye-popping $718,455. What may be even more startling is that all these condominiums sold in only 17 days and at 100% of their asking prices.
Notwithstanding that condominium apartments are now becoming quite pricey, the supply still remains insufficient to meet demand. At the beginning of June there were only 2,568 condominium apartments available to buyers, more or less the same number as were available last year when the average sale price was $40,000 less than it is this year.
To qualify for an average priced condo unit in Toronto’s central core now requires a household income of substantially more than $100,000 annually, and a 10% down payment of more than $70,000.
Looking ahead to June we can anticipate that sales will probably decline from May’s torrid pace to a more tapered sales volume, with the average sale price increasing moderately by about 3%. Price increases in this modest range are exactly what the Toronto resale market needs in order to remain sustainable.
Victoria Boscariolis a real estate agent in Toronto Canada with Chestnut Park Real Estate Limited Brokerage. With over 20 years experience, Victoria has been helping people successfully buy and sell condos and houses in Yorkville and downtown Toronto. As a Certified International Property Specialist (CIPS) she has worked with Buyers from around the world moving to Toronto from China, Russia, Brazil, India, South Africa, United Arab Emirates, Jordan, Cyprus, Italy, Germany, The United Kingdom, Australia and the United States. By building an international marketing strategy for every property she puts up for sale, Victoria's listings of Toronto homes and luxury condos get global exposure that attract qualified buyers from around the world.
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purchase, sale and lease of real estate as part of a cooperative selling system. Canadian Real Estate Association Last Updated: 11/13/2019 10:15:41 AM