Toronto’s real estate market has been through various upheavals in the past but all that is steadily starting to fade with the market picking up rapidly. Buyers and end-users are steadily returning to the Toronto real estate market. With the dust beginning to settle from the impact of the mortgage stress-test and reduced affordability, several fence-sitters are now showing renewed interest in buying property in Toronto. Average prices of homes in the GTA (Greater Toronto Area) have increased to a new high over 13 months in June 2018 as per reports.
The regional realty board has also forecasted that prices may continue to increase, going by the influx of new buyers into the Toronto real estate market. 8, 082 units were sold for June 2018 in the GTA which is considerably more than 7, 834 units sold in May 2018 and indicates 2.4% of growth as compared to June 2017. Active listings of new homes went up by 5.9% (year-on-year) to stand at 20, 844 units although new listings came down by approximately 19%.
However, experts forecasted no such major issues around supply which will keep looking up with renewed interest of buyers. In fact, competition could go up substantially amongst buyers competing to land their preferred properties. Condominiums continue to be a hot market segment with projects like Fleur Condos, 88 East Condos and Panda Condos already drawing sizable interest. With higher competition amongst homebuyers, prices could also increase further.
Average selling prices increased to $807, 871 in June 2018. Experts feel that homebuyers and sellers have gradually adjusted to the higher costs of borrowing and the rises in interest rates at the Bank of Canada from the previous summer. The stress tests introduced in January 2018 for uninsured buyers who pay at least 20% as the down payment have also been accepted by buyers now. Post some adjustments in this regard, homebuyers are now coming back in droves and this augurs well for the real estate market in Toronto.