Double-Digit Increases Reported in Close to 90 per cent of Neighbourhoods

Intensification contributes to significant upswing in Toronto’s detached housing values

in the first six months of 2016, says RE/MAX Hallmark

 

Toronto, ON (August 2, 2016) – Intensification within Toronto proper has served to further bolster price appreciation as builders and end users compete for a limited number of single-detached properties listed for sale, according to a report released today by RE/MAX Hallmark Realty Ltd.  The overall average price of a detached home in the 416 area code is up 16.4 per cent in the first six months of 2016 to $1,230,340, compared to $1,056,688 during the same period one year ago.

 “Average price will continue to soar in conjunction with improvements in housing stock,” says Ken McLachlan, Broker-Owner, RE/MAX Hallmark.  “Teardown activity is rampant throughout Toronto and neighbouring Scarborough, as evidenced by the ever-increasing number of applications for zoning variances and lot severances.  Scarcity of land, further exacerbated by the greenbelt to the north, east and west of the city, has also prompted double-digit increases of detached homes in 90 per cent of neighbourhoods in the 416 area code to date, with almost 57 per cent now reporting average prices in excess of $1 million. ”

 RE/MAX Hallmark examined average price appreciation in four separate Toronto Real Estate Board districts (East, West, Central, York Region) and 44 communities for the first six months of 2016.   Of the top five performing areas for detached homes in the 416 – in terms of price appreciation — are all located in the central core.  Banbury, Don Mills, Parkwoods, Donalda, and Victoria Village (C13) led the city with a 36.4 per cent increase in the average price of a detached home, with values rising from $1,335,548 to $1,821,777.  Bayview Village, Bayview Woods-Steeles, Don Valley Village, Hillcrest Village, and Henry Farm (C15) ranked second with a 31.8 per cent upswing in the first six months of the year, with the price of an average detached home climbing to $1,649,510, up from $1,252,000 during the same period in 2015.  Lansing, Westgate, Willowdale West, and Newtonbrook West (C07) experienced an uptick of just over 29 per cent, with average price rising from $1,257,458 to $1,624,017.  The Bathurst Manor, Armour Heights communities (C06) rose 26.9 per cent year-to-date, with average price climbing from $1,010,711 to $1,282,135.  Rounding out the top five was Willowdale East (C14) with a 26.4 per cent increase in detached housing values ($1,596,358 to $2,018,060).

“As pricing for detached housing south of Highway 401 escalates, buyers have set their sights on communities north of the 401 that offer up bungalows and smaller two-storey homes on good size lots at more affordable price points,” explains McLachlan. “However, fewer and fewer post-war homes are available within Toronto proper, given the move toward re-gentrification.”  

Detached housing values north of Steeles Ave. in York Region have spiked as a result of the ripple effect, according to McLachlan.  Both Aurora and King experienced strong upward pressure on prices (28.6 per cent and 27.7 per cent respectively) in the first six months of 2016, but so too have other communities including Georgina (26.2 per cent), Newmarket (25 per cent), Richmond Hill (24.7 per cent), and Markham (24.4 per cent). 

 More than 7,000 detached homes changed hands in York Region between January 1 and June 30, an increase of almost 14 per cent over the 6,310 sales reported during the same period in 2015.  Limited inventory levels kept detached sales increases to half a percentage point in the central core (2,263 vs. 2,252), three per cent in the west end (2,130 vs. 2,068), and close to six per cent in the east (2,490 vs. 2,358), with the vast majority of gains occurring in Scarborough.

Click HERE for the City of Toronto average price percentage increase for Detached homes, Jan2016-June2016.

 

 For all of your real estate questions please contact me direct (416-520-6746) or by email, David@DavidStoddard.ca

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GTA Real Estate Market Report July 2016

Strong July Price Growth

Greater Toronto Realtors reported 9,989 residential sales through the Toronto MLS system in July 2016. The number of transactions in July represented a 1.8% increase compared to 9,813 transactions reported in July 2015. Condo apartments in the GTA had the highest sales increase year-over-year at 10.3%

The number of new listings reported in July was down 7.4% compared to the same period in 2016. Active listings were 11,346 in July-down 31.9% from July 2015.

For the TREB market area as a whole, annual sales growth was experienced for all major home types except detached homes. In the City of Toronto, sales were down for townhouses as well 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.

“GTA Realtors have been working hard on behalf of their buyer clients to help them find a home meeting their needs. Unfortunately, listings for single-detached and semi-detached houses and townhouses continue to be in short supply. The result has been an increase in pent-up demand and annual rates of price increases well above the rate of inflation. Housing policy is now top of mind for all levels of government. Policy makers need to be focusing on solutions to the sustained lack of low-rise inventory throughout the GTA,” said Larry Cerqua, TREB’s President.

The average price in July was up by 16.6% from the same time last year to $709,825. Detached homes in the GTA led the way in terms of an average price increase at 21.1% compared to the same time last year.

“Relatively strong labour market conditions, above-inflation average income growth and record low borrowing costs have kept many households confident about purchasing a home. As long as very strong buying intentions are up against an extreme shortage of listings, expect home price growth to greatly outpace the rate of inflation,” said Jason Mercer, TREB’s Director of Market Analysis.

Sales of Toronto (416 area code) condominium apartments increased by 9.2% in July 2016. The average selling price of a Toronto condo increased by 8.2% in July 2016 from the same time last year to $427,074.

Condominium apartments accounted for 26.7% of total sales in the GTA for July 2016 while detached homes accounted for 46.6% of the total sales. Other notable statistics include the average days on the market for July at 16 days, down 27.3%. The sales-to-listings ratio for July 2016 was 88.0% 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.

For all of your real estate questions please contact me direct (416-520-6746) or by email, David@DavidStoddard.ca

** You can follow my real estate posts on FACEBOOK. Click here to LIKE my real estate page

Oh, by the way……if you know of someone who would appreciate the level of service I provide, please call me, text me or email me with their name and number. I’ll be happy to follow up and take great care of them.