Toronto is on track to see a record number of house sales this year as demand and prices continue to climb beyond almost anyone’s expectations, even for condos.
On Track to a Record Number of House Sales this Year
More than 6,519 homes sold across the Greater Toronto Area in September, bringing the number of transactions up almost 6.6% for the 11 months of 2014 compared to the same period last year.
If the current pace of sales growth remains in place, we could be flirting with a new record for residential sales.
The continued, unrelenting climb of Toronto prices to the point where price growth here, as well as in Vancouver and Calgary, are skewing the national average has renewed some calls for Ottawa to push up interest rates to slow down housing demands and that could be an even more dangerous move given the high levels of household debt in the country.
House prices have already started to drop in Ottawa, Montreal and Halifax. “Demand fatigue” will spread over time to Canada’s major housing markets, as well.
Yet the Toronto housing numbers continue to defy the naysayers.
Prices were up an average of 8.4%.
The housing sector continues to be plagued by a constrained supply of homes for sale, especially in some high demand areas of the City of Toronto.
That has helped push detached house prices up, yet again, by 7.7%. That brought the average sale price for a detached to $935,122 in Toronto.
With the prices so high, first time buyers cannot afford to buy homes. A lot of 1st time buyers are having to rent unless they have parents who can afford to help them.
Canada’s reputation as a safe haven from global financial storms has driven condo development in Toronto and Vancouver since 2009, attracting investors at home and abroad spooked by stocks, bonds, and foreign banks at risk of failure.
Despite a persistent shortage of listings in some market segments, we have experienced strong growth in sales through the first nine months of 2014.
We are all hoping this strong growth will continue into 2015.
Thank you Mike for helping me, year after year, to continue to be a Top Producer in my marketplace and to be in the Top Ten for Century 21 Canada. (You’re the best! Could not have done it without you!)
- March 26, 2015
CENTURY 21 Leading Edge Realty Inc., Brokerage*