Spring Market Capped off With Strong June
Greater Toronto Realtors reported 12,794 residential sales through the Toronto MLS system in June 2016. The number of transactions in June represented a 7.5% increase compared to 11,905 transactions reported in June 2015. Condo apartments in the GTA had the highest sales increase year-over-year at 15.8%
The number of new listings reported in June was down 3.8% compared to the same period in 2016. Active listings were 12,327 in June-down 31.4% from June 2015.
For the TREB market area as a whole, annual sales growth was experienced for all major home types except townhouses. In the City of Toronto, sales were down for semi-detached houses as well as townhouses on a year-over-year basis. This dip in sales was due to a lack of low-rise listings. Many would-be buyers were not able to find a home that met their needs.
“We are certainly in an interesting environment of ownership housing. There is no doubt that demand is at a record level, but would-be home buyers continue to face an uphill battle against a constrained supply of listings, which has perpetuated strong price growth,” said Larry Cerqua, TREB’s President.
The average price in June was up by 16.8% from the same time last year to $746,546. Detached homes in the GTA led the way in terms of an average price increase at 19.9% compared to the same time last year.
“When TREB surveyed consumer intentions for 2016, we found that the majority of GTA households who were likely to purchase a home continued to be pointed towards some form of ground oriented housing. This is why we continue to see strong completion between buyers in many neighbourhoods where supply remains constrained,” said Jason Mercer, TREB’s Director of Market Analysis.
Sales of Toronto (416 area code) condominium apartments increased by 15.0% in June 2016. The average selling price of a Toronto condo increased by 6.9% in June 2016 from the same time last year to $448,002.
Condominium apartments accounted for 24.3% of total sales in the GTA for June 2016 while detached homes accounted for 49.3% of the total sales.
Other notable statistics include the average days on the market for June at 15 days, down 21.1%. The sales-to-listings ratio for June 2016 was 100.4% which is classified as a very big seller’s market. A ratio from 24%-28% is considered a balanced market.
Sellers are looking for market value for their property. I prepare a comparative market analysis (CMA) for all of my Buyer clients prior to submitting an offer to determine the property’s market value range
Real estate is very neighbourhood specific, building specific and even very street specific in some areas. The numbers as reported above are GTA averages. Results in one neighbourhood , on one street or in one building do not indicate that all other neighbourhoods, streets or buildings are experiencing the same results. We are still seeing multiple offers in some areas for the best homes and condos.
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