In keeping with the trend of the past several months, home sales and prices in the Greater Toronto Area continues to reach record highs. Recent figures released by the Toronto Real Estate Board for the month of June sheds some light on the crazy demand for housing and condos, and the high prices people are willing to pay.
CBC News, argues that there is little indication that the Toronto real estate market is cooling. According to TREB and the CBC, sales growth in Toronto is outpacing the rate of listings growth by a wide margin. In terms of home sales, townhomes and condos in the GTA reached 11,992 in June, up more than 18% from a year ago, setting a record for the month of June. The average selling price for all homes last month was $639,184, up 12.3% from a year ago. Here is a breakdown of some of the other important figures released by TREB.
- The average selling price of a detached house reached $1,051,912, an increase of 14.2% over last year.
- The average selling price of a semi-detached home reached $761,819, an increase of 13.2% over last year.
- The average selling price of a condo reached $418,599, an increase of 6.3% over last year.
The average selling price of a townhouse reached $539,259, an increase of 10.8% over last year.
- The sale of semi-detached homes was up 1.8% year-over-year in the GTA.
- The sale of condos was up 22.4% year-over-year in the GTA.
- The sale of townhouses was up 21.2% year-over-year in the GTA.
- The average selling price of a suburban semi-detached home reached $496,740., an increase of 10.7% over last year.
- The average sales price of a suburban condo reached $324,388, up 4.6% compared to last year.
- The average sales price of a suburban townhouse reached $459,004, up 14% compared to last year.
- The sale of suburban semi-detached homes was up 10.6% year-over-year in the GTA.
- The sale of suburban townhouses was up 18.4% year-over-year in the GTA.
The MLS Home Price Index composite benchmark is another metric that illustrates the dramatic increase in home prices in the country, measuring the rate at which housing prices change over time by tracking price changes in “typical” homes in each market. The typical selling price of all homes went up by 8.9%. The difference in price growth between the MLS figures and the TREB research, according to some, can be accounted for by the cost of million-dollar homes being sold. Factoring those sales out, which tends to skew the average, the figure should look closer to the 8.9% estimated by MLS.
The big question is whether or not this continued price growth will lead to changes in the national interest rate. The Bank of Canada is set to decide whether to leave the interest rate as is (at 0.75 per cent), or change it. Some analysts are predicting that the interest rate might get cut down to 0.5%, which is causing some concerns about whether this will stimulate the market even more so and causes an even bigger frenzy.