June 2016 Market Review
June was a typically busy month in the Toronto real estate market. TREB’s Market Watch reported 12,794 sales for the month, up 7.5% from the 11,905 sales reported last June. I could copy and paste this from my last couple of market reviews: once again, new listings were down. There were only 16,980 last month, down 3.8% from the 17,659 new listings posted in June, 2015. The total number of active listings was down a whopping 31.4%, from 17,972 to just 12,327. Again, that’s a major source of frustration (and escalating prices) in the Toronto market: not enough listings!
The average sale price (for all types, not just the much-reported detached house) was $746,546, up 16.8% over last June’s $639,309. That’s a pretty steep hike, but not shocking given the lack of inventory.
The condo segment had a great month. Sales were up 15%, and prices edged up 6.9%, showing some strength, but again keeping condos as a great option for would-be house buyers who want to get into the market before they fall too far behind the price increases. Think about it: the sooner you buy something, the sooner you start building equity!
By the way, short supply of new listings isn’t the only reason prices continue to rise. There are other factors that affect housing prices in Toronto. Everybody knows that low interest rates (i.e. ‘cheap money’) are helping buyers; that’s a big deal, certainly. Our fantastic city’s rising population contributes a constant level of demand, too. Rarely reported is the non-stop improvements we see going into properties all across the city. Renovations and additions add value, and one doesn’t have to look far to see them happening. That house that just sold for way more than it did last year has been gutted and modernized. It makes sense that it would sell for much more, doesn’t it’?
July and August are usually a slower period – the ‘summer market’. If you are a buyer, keep your eyes open, as we may see some opportunities while other buyers are at the beach/patio/cottage! 😉