The June Market signalled ANOTHER record breaking month; however, AT LEAST, the Average Sale price was lower than last month, AND sales decreased compared to May. Why? because total listings are 31% LOWER compared to June of last year!
So here’s the Executive Summary for this month:
*Sales UP by 7.5% year over year
*Average sale prices for GTA UP by almost 17% to $746.5K
*NEW listings DOWN by 4% and TOTAL LISTINGS DOWN BY 31%
*Average days on market DOWN to 15 days….21% FASTER than last year.
*Of all the sales of Detached, semi detached and town homes, 74% took place in 905 area code! The city of Toronto represented only 26% of total sales…
*Conversely, 70% of all condo sales in June took place in the city of Toronto.
PRICE INCREASES BY HOUSE TYPE IN THE CITY:
Detached houses UP 20% to $1,260,000. (in the central core…$2,073,000 !!)
Semi’s UP 20% to $913K (close to $1.2ML in central)
Condos UP by 7% to $448K (condo apartments average $495K in the city core; condo Towns are $628K)
Here is an important fact about the much “maligned” condo market for all of you to absorb:
Three years ago the newspaper headlines stated unequivocally that the amount of new condo construction underway WILL produce an unwanted GLUT in the housing market and the market would be severely and negatively impacted by such aggressive growth.
Today, the housing analysis for this month reports that CONDO SALES ARE NOW OVERTAKING SUPPLY. New Condo sales in Q1 of this year reports that sales to inventory are now 2:1! There have been over 6000 sales in Q1 with only 3000 units now available….
The economists and reporters seriously underestimated the allure of Toronto as a destination city to people around the world….and this does not include BREXIT and Anti-TRUMP (future) immigrants!
With negative interest rates in Europe, the advent of BREXIT and “free money” here at home, buying something REAL is important for investors, people with cash freed up and ordinary folk who just want a place to call their own…and what is more REAL, TANGIBLE than REAL ESTATE.
Our summer months may continue to be hotter than usual as well, and I wish I were just talking about the temperature!
And it is not just the GTA! I helped clients buy their dream home in Vaughan a couple of weeks ago….8 offers in the small community of Maple! (We prevailed, but only on the 3rd round at the table and 18% above the asking price. Even at that elevated price, we only “just” prevailed!)
Stay tuned for next month’s chapter detailing the slings and arrows of Home Buying/Selling in Toronto!