Summer has seen a host of promising Toronto real estate trends – especially for sellers. While housing supply remains a notable problem in Toronto, August has seen a growth in home sales throughout the city. In fact, Toronto is the fastest-selling housing market in the Greater Toronto area, making it an ideal spot for those looking to get out of properties that they no longer need or want. This is encouraging, as the purchase of new homes generates a great amount of positive economic activity.
In July 2018, Toronto saw 6,961 residential sales. This is a serious improvement over the figures from July of last year, which observed 18.6% less residential sales. Additionally, seasonally adjusted sales were at their highest in the summer of 2018, which is a pleasant surprise when one considers the lows of summer 2017’s similar sales.
While more people are buying homes, Toronto has actually witnessed a decline in new listings on the market. Since the summer of 2017, new listings in the city have dropped 1.8%.
Not only have more people been buying homes in Toronto than they did in 2017, but the prices on these homes have gone up substantially in comparison to last year as well when compared to Toronto real estate market 2018. The average selling price of a home in Toronto increased by 4.8% in just one year, to an average of $782,129.
Prospective homeowners have been out of the market for some time, with some citing the Fair Housing Plan and changes to mortgage lending guidelines. But now they are starting to re-emerge and venture out to fulfill their dreams of home ownership once and for all. Unfortunately, it seems that there are not enough available homes for sale in Toronto to keep up with the demand.
For the largest city in Canada, this is a tremendous concern. While it is expected that sales will continue their upward trend through the rest of the 2018 calendar year, it is also expected that growth will be stifled by the shortage of new residential listings. The Building Industry and Land Development Association is currently urging the province of Ontario to allow more low-rise detached houses and townhouses to be constructed in the Toronto area.
This effort could, if enacted, see an increase in home sales and a potential decrease in soar of Toronto real estate prices. As of August 2018, the average price of a home sold in Toronto is $823,000, making it the 9th most expensive city in all of Canada to live in.
Despite the high prices, Toronto is a high-demand city wherein many people want to relocate. Hopefully, BILD and the government of Ontario will be able to come up with a viable solution to produce more detached low-rise homes and townhouses for the population that wants to enjoy the city’s many splendors.