Strong Sales and Price Growth in August
Greater Toronto Realtors reported 9,813 residential sales through the Toronto MLS system in August 2016. The number of transactions in August represented a 23.5% increase compared to 7,943 transactions reported in August 2015. It is important to note that the majority of sales are reported on working days and there were two additional working days in August 2016 compared to 2015. Where the year-over-year discrepancy in working days is accounted for, the annual percentage change in sales is closer to 13.0%.
Condo apartments in the GTA had the highest sales increase year-over-year at 32.0%
The number of new listings reported in August was down 1.2% compared to the same period in 2016. Active listings were 9,949 in August-down 37.8% from August 2015.
For the TREB market area as a whole, annual sales growth was experienced for all major home types. In the City of Toronto, sales were down for semi-detached homes on a year-over-year basis. This dip in sales was due to a lack of listings. Many would-be buyers were not able to find a home that met their needs.
“The conditions underlying strong demand for ownership housing remained in place, including a relatively strong regional economy, growth in average earnings and low borrowing costs. Unfortunately we did not see any relief on the listings front, with the number of new listings down compared to last year. This situation continued to underpin very strong home price growth, irrespective of home type or area,” said Larry Cerqua, TREB’s President.
The average price in August was up by 17.7% from the same time last year to $710,410. Detached homes in the GTA led the way in terms of an average price increase at 21.5% compared to the same time last year.
“Population in the GTA continues to grow. The resulting growth in households coupled with favourable economic conditions and low borrowing costs means that we remain on track for another record year for home sales. Against this backdrop, TREB will also be releasing new third-party research, and consumer and REALTOR survey results throughout the fall and winter, with discussions focusing on foreign buyer activity and issues affecting the supply of ownership housing,” said Jason Mercer, TREB’s Director of Market Analysis.
Sales of Toronto (416 area code) condominium apartments increased by 33.5% in August 2016. The average selling price of a Toronto condo increased by 9.8% in August 2016 from the same time last year to $446,612.
Condominium apartments accounted for 28.4% of total sales in the GTA for August 2016 while detached homes accounted for 45.3% of the total sales.
Other notable statistics include the average days on the market for August at 18 days, down 21.7%. The sales-to-listings ratio for August 2016 was 99.0% 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.