Toronto real estate sales soar in July

House sales across the GTA in July reached their highest levels for that summer month since 2009, with a 16 per cent surge in sales.

House sales across the GTA in July reached their highest levels for that summer month since 2009, with a 16 per cent surge in sales.

It was the third best July for sales on record, says the Toronto Real Estate Board.

The average selling price also spiked, up eight per cent to $513,246, largely based on resale home sales, according to figures released Friday by TREB.

Condo apartment sales, and prices, were also up. Sales increased some 10.5 per cent for the GTA over a year earlier – with sales strong in both the 905 and 416 regions – and average sale prices up 3.4 per cent to $338,854, the figures show.

Part of the upward price pressure is because of a lack of inventory for sale, largely on the single-family home side. New listings were up just 2.3 per cent from July, 2012.

The numbers also come a year after tighter mortgage lending rules, which went into effect July 9, 2012 and sent the market into a bit of a tailspin from which it’s slowly been recovering.

Realtors are finding that first-time buyers have slowly adjusted – the year since the mortgage rule changes has given them time to save up bigger downpayments – and seem to be out looking again.

The sales increase also reflects the fact that many buyers with pre-approved mortgages of three per cent or less, jumped into the market out of fear that a slight spike in interest rates recently was just the beginning of an upward trend.

Even the condo sector is seeing a firming up of prices, which largely flatlined as of a year ago, although the number of units for sale remains high.

“We are forecasting continued average price growth for the remainder of 2013 and through 2014 as well, says TREB senior manager of market analysis, Jason Mercer. “Months of inventory for low-rise homes remains near record lows, suggesting that sellers’ market conditions will remain in place the second half of 2013.”

Sabrina Wong, Sales Representative, Century 21 Atria Realty Inc.

Source of Article: http://www.thestar.com/business/real_estate/2013/08/02/toronto_real_estate_sales_soar_in_july.html

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Sabrina Wong

Sabrina Wong

Sales Representative
CENTURY 21 Atria Realty Inc., Brokerage*
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