Home prices in the GTA are definitely showing an upwards trend as can be seen from our past blogs on real estate news and the most recent figures released by TREB this month. This just goes to show that the Toronto real estate scene is definitely not showing signs of cooling down any time soon!
Here’s another tidbit that is a bit surprising: Although sales have decreased by 8.5% as compared to a similar period last year, detached home prices in the City of Toronto are now averaging at a 12.9% higher than last year – it is now at $1.107 million, a figure that sits firmly above the $1 million mark.
It’s Not Just the City
For those who may be thinking that this upwards trend surely only applies to properties in the city, you can’t be more wrong. In fact, the August figures for home prices across the GTA rose 10% to $602,607 and is bound to get higher. With sales increasing by 5.7% as compared to last year, it only means that the demand for homes and the willingness of home buyers to pay more for their own little slice of Toronto will most likely drive the prices up some more for the coming months.
But what factor is responsible for the recent figures released by TREB? Condo sales might perhaps be the culprit, recording a 14% increase in sales; but then again, could it be because people are simply looking for alternative choices to the much-coveted low rise semi-detached and detached homes and townhomes?
Rising Prices Continues
Condo prices in the City of Toronto have risen by 9.5%, now averaging at $406,587 and those in the 905 regions are not to be left out, climbing 4.1% to an average of 319,764.
As for townhouse prices, the City of Toronto recorded a 13.2% increase, making the average jump up to $54,136. The 905 regions had an 11% price increase, making their average figure to be now at $451,311 although sales for both the 905 regions and the city were only up by 0.5% and 1.3% respectively.
Home sales in the 905 regions increased by 7.5%, unlike the 8.5% decrease in the city of Toronto. Home prices in the area increased by 13.8% and is now averaging at $733,577, a price hike beating the city’s 12.9% increase, a clear indication of demand surpassing available supply.
New listings increased by 8.3% in August but active listings actually went down by 10.5%. How so? It is not a secret that buyers are continuing to flock in to Toronto and with low oil prices and low interest rates fueling this movement, the available homes continue to be less than the market demand, hence causing further buying frenzy.
TREB’s director of Market Analysis Jason Mercer states that August continued the upward trend in 2015 as selling prices are driven further up by buyer competition. There may be some relief in the Toronto real estate market if listings continue to increase in the coming months (to balance out the supply with the demand) but that remains to be seen.
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