Toronto Real Estate Market As At July 2015
Real Estate Sales in June 2015
GTA realtors reported an astounding 11,992 sales through the Toronto MLS in June 2015. This represented a 18.4% increase from the same period in 2014. This is an incredible showing for the Toronto Real Estate Market, with the statistic representing a new transaction record for the month of June.
June saw the average GTA sale price increase by 12.3% to $639,184. While this does reduce affordability for many home buyers, the low interest rate environment continues to allow them to get into the housing market. Sellers are definitely benefiting the most from current market conditions, particularly owners of high-end homes, which have accounted for a larger proportion of overall transactions in 2015 to date. Listings growth has increased this year (6.7%), which is encouraging as home owners have taken advantage of favourable conditions to put their home for sale. However, this has been surpassed by sales growth (18.4%), which is one reason why prices continue to increase.
The average sale price for detached homes in the GTA in January was $816,583, semi-detached was $96,638, townhouse was $480,447 and condominium was $390,894.
Update on Mortgage Rates and Interest Rates in 2015
- There is now an at least 50% chance that Greece may leave the Euro, after it became the first industrialized nation to default to the IMF
- There is a strong possibility that Canada is in a recession. April GDP came in negative, which is 4 months now of negative growth.
There’s no guarantee that the commercial banks will reduce their 5 year mortgage rates in response to the decline in bond yields, but it is increasingly likely that they will. Many watchers now expect a 25 basis point rate cut by the Bank of Canada on July 15th.
Should Opinions on Rates Impact Your Home Or Condo Purchase Or Sale Decision For The Remainder of 2015?
In January I asked whether speculation should affect your home purchase. I said no then, and I continue to advocate that it should not now. Lifestyle circumstances should first and foremost be the deciding factor when making a decision this large, because any rate moves will be minor. As I said in January, don’t try to time the market, but rather, make the decision based on family circumstances. It’s the only way to proceed.
Ram Rajendram is a Toronto Real Estate Broker with Century 21 Harves Realty Ltd., Brokerage. He sells condos & houses throughout the GTA & assists home & condo buyers with their purchasing needs. He is also a Canadian Chartered Accountant (CA) & holds a Bachelors Degree in Economics from the London School of Economics (LSE)