It’s been a few weeks since we last posted some Oakville real estate news and the numbers continue to rise.
The Toronto Real Estate Board shared that around 12,000 homes got new owners in June, and that this home shopping spree has brought the June 2015 Toronto average house price to a new record - $1.052 million!
The Real Deal
Okay, we’ve covered on past blogs that the prices is mostly brought on by inflation from the sales of high-end or luxury homes, but that surely doesn’t take away from the fact that people want to live in Toronto and are willing to buy pricier homes just to become our neighbours!
Jason Mercer, TREB’s director of market analysis did state that the price surge in this year’s home sales was driven by the sale of pricier houses and that if the multi-million dollar sales were taken out of the computation, the price increase for homes across GTS would be closer in average to the MLS Composite Benchmark. But why are people flocking to our neighbourhoods anyway?
Sought- After Real Estate
The demand for homes in the GTA is so high that it is not affected at all by the concerns about Canada being on the verge of a possible recession. In fact, home sales increased by 18.4% as compared to June last year, resulting to about 12,000 condos, semis, townhouses, and detached homes being handed over to new homeowners last month.
Which homes got the highest sales records? Home types with the highest sales growth are surprisingly, high-end homes at an 18.3% sales increase and condos at a 22.4% sales increase. Prices are still expected to rise though, as the bank of Canada further drops interest rates making prospective new homeowners bolder in making the decision to go for pricier homes.
Condominiums are now at a premium, although they were not viewed as very favourable just a few years ago. That’s all in the past, especially if we are to go by the 6.3% increase in condo prices just for the month of June. It might even get past the half a million mark!
Still much sought-after are townhouses, notably for those seeking low-rise housing in GTA who cannot find a detached home within their budget, so it is not all about condos these days. In fact, the sales price increased by an average of about 10% and sales are at a whopping 20% more as compared to a similar period last year. This is not surprising at all. The price growth has been growing for a decade and is still not showing signs of tapering off, but why?
TREB president Mark McLean is quoted as saying that the GTA consistently is rated as one of the best places to have a business and live. He also notes that “It is important to point out that our region continues to grow in response to our diverse economic, ethnic and cultural bases.” Small wonder why Oakville and the rest of the GTA is on every home buyer’s radar!