We are only a couple of weeks into summer in Toronto and already we’ve had a heatwave alternating with rainy days. From one extreme to another.
The Toronto housing market is also alternating between the sellers capitalizing on the rising property values (average 20% increase in prices from June 2015!) and would-be sellers waiting for even higher prices before they put their home on the market, as shown by the recent drop in the number of new listings.
Toronto Real Estate Board released June year-over-year sales figures this past week and the hot Toronto real estate market shows no signs of slowing down.
- 12,794 residential transactions in June — 7.5 per cent more that June 2015
- New resale listings down 3.8%
- Average detached home price up 19.6% to $1,259,486 (in Toronto, higher in the GTA)
- Average condo price up 6.9% to $448,002 (in Toronto, higher in the GTA)
Concern for buyers being priced out of the market continues to increase demand as homes are snapped up quickly with the average days-on-market at 15, a 21% change from June 2015 when the days-on-market was 19.
One thing that has stood out over the 2016 TREB monthly sales reports is the upward pressure on prices throughout the Greater Toronto Area (commonly referred to as “905”), outside of the city proper and into the suburbs and communities to the east, west and north of the city. As an example, condos outside of the City of Toronto saw an annual price increase of over 10%, well above the price increase seen within the city boundaries.
As new public transportation is planned and construction started, as the 407 highway opens up to the east of Toronto, easier commutes to Toronto will certainly create demand in these regions for all types of homes.
One of the areas you may be familiar with is Cambridge, to the southwest of Toronto, just about an hour’s drive from Toronto city hall, across the 401 highway.
Earlier this year I sold pre-construction homes in the Grand River Woods project by Crystal Homes and Fernbrook Homes, two very respected builders. These detached single family freehold homes sold out in just two days.
The Cambridge real estate market is having its highest sales numbers since the beginning of the year in over 13 years.
Average home prices are up over 12% year-over-year from May 2015 and the area is also seeing a shortage of new resale listings with a drop of 17.5% from May 2015.
What we are seeing in other areas just outside of Toronto, Cambridge is also now experiencing.
Homeowners with built-up equity in their homes are selling at high prices and moving out of the city to take advantage of lower prices, and a slower paced, family friendly lifestyle and are not concerned with an hour’s commute to get into Toronto.
As a less hectic lifestyle is wanted and the detached home that is most people’s dream home calls out, people are listening and buying and moving.
I know that homes that fit this type of purchaser, as they come to market, will show exceptional returns on investment.
I have an exclusive sale on the final lots for the Grand River Woods pre-construction development coming soon.
Details will be announced soon, so watch for my next email.