Toronto Market Continues to Soar

The new average price for a detached house is $1,285,693 in Toronto

While new listings continues decrease...

 

SELLER… take the advantage of this crazy real estate market and LIST YOUR HOME NOW 

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TREB president Mark McLean said a shortage of homes for sale helped drive the rise in prices.

Finance Minister Bill Morneau has increased the minimum down payment for homes over $500,000, a measure aimed specifically at Toronto and Vancouver.

As of February, homebuyers were required to put down 10 per cent on the portion of a home over $500,000. Buyers can still put down five per cent on the first $500,000 of a home purchase.

CREA previously reported that sales volumes in Toronto were stable in the first two full months since the new federal mortgage rules went into effect in mid-February. But prices continued to climb month-over-month in March and April.

TREB said 12,870 homes of all types were sold in the Greater Toronto Area through its Multiple Listing Service in May. That included 4,638 in the city itself and 8,232 in surrounding areas.

 

The number of new listings was down compared to the same period last year, meaning there were more buyers competing for fewer homes. The number of homes listed for sale in the first quarter fell to its lowest level for a first quarter in at least 12 years, according to an analysis by National Bank.

A competition among buyers for fewer homes often results in bidding wars that drive prices higher.

Toronto is a seller’s market, with sales-to-new-listing ratios hovering around 70 per cent — the highest ratio since the 2008-2009 recession, said Robert Kavcic, senior economist at BMO.

He doesn’t see this abating any time soon as strong job and population growth in the GTA will continue to drive demand, while few new detached homes are being built.

“This has been more of a sustained gradual increase in demand and no new supply coming on board, so this is probably going to persist longer than back in 2009.”

Davis said the market is stronger now than it was coming out of the recession, adding she’s the busiest she’s been since 1989.

“We didn’t have a terrible winter, I think that helped, mortgage rates helped, and demand is high and supply is low,” she said.

“All those things together make a busy time.”

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Riyaz Malam

Riyaz Malam

Sales Representative
CENTURY 21 Titans Realty Inc., Brokerage*
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