The Toronto Real Estate Board announced record home sales…. Again!
The 9,880 homes sold through the MLS system, represented an 8% increase over July 2014, with the average year to date sales price for the whole MLS system standing at $622,557. The number of transactions were up for all major home types, including a double digit year-over-year increase in condominium apartment sales.
Here’s a little better breakdown of average prices so far this year.
416 905 Area Code
Detached Homes $996,770 $729,261
Semi - Detached $716,160 $499,821
Townhouse $536,212 $448,785
Condo Apartment $394,504 $317,564
On average, 66% of the MLS sales occur by July 31. Base on the 64,262 homes sold year to date, it looks like we will have over 97,000 homes sold in 2015, a new record!
I continually get asked if we are in a bubble. From my point of view, home ownership demand has been driven not only by low borrowing costs, but also by the fact that the GTA economy has been performing quite well, with the unemployment rate lower compared to last year. Home buyers also remain confident in the long-term benefits of owning a home. When combined with foreign investors getting their money out of their own countries, and the fact that Canada is “on sale” (most foreigners use the US dollar, so the falling Canadian dollar makes Canadian purchases that much cheaper), it’s easy to see why sales are so high, and prices continue to rise. As long as those factors do not change, prices will continue to increase.
I continually get asked if we are in a bubble. From my point of view, home ownership demand has been driven not only by low borrowing costs, but also by the fact that the GTA economy has been performing quite well, with the unemployment rate lower compared to last year. Home buyers also remain confident in the long-term benefits of owning a home. When combined with foreign investors getting their money out of their own countries, and the fact that Canada is “on sale” (most foreigners use the US dollar, so the falling Canadian dollar makes Canadian purchases that much cheaper), it’s easy to see why sales are so high, and prices continue to rise. As long as those factors do not change, prices will continue to increase.
If you have a friend who is considering selling privately, please, please, please, make sure they call me first. Not because I want their business, (yes I would like it) but pricing is very tricky in this type of a market. Just because a similar type of home sold for a price last week, it might be possible to get $100,000 more this week. I know it sounds crazy, but that’s the market we are in. I would be happy to consult with them, no obligation, to make sure that they would not sell their home for less than market value.
Have a great August, and remember, I am never too busy for your referrals!
Your Friend in Real Estate.
Steven Maislin
Steven Maislin
