The residential real estate market is fast evolving in Canada. However the Toronto detached housing market is witnessing higher prices and sales figures alike. Sources state that in August, the detached housing market managed to post growth in double-digits which is quite a generous figure, indicating positive outcomes ahead in Toronto’s realty market. The boom in real estate sales has been clearly indicated through increasing prices and comparatively lesser inventory.
Detached Greater Toronto housing-prices increase by 3%
As per significant reports and surveys, the selling prices of detached properties in Greater Toronto have gone up as compared to levels witnessed last year. To be precise, the prices have increased by 3.07%, touching an average selling price of around $943,000 for August, 2019. The real estate prices of detached homes in Toronto have mostly been lower than the amount mentioned here. In recent years, the increase in sales figures has remained restricted to around 2.95%. Both percentages have gone up now as indicated by several studies and reports.
The percentage of price growth has definitely escalated in recent times although it might not precisely be what it seems like. The City’s 2.95% as well as TREB’s 3.07% growth rate seem to be comparatively higher than that of the previous month. However, the reason behind the increase is that the prices were not closer towards any major downfall from a seasonal perspective. If you consider prices throughout the TREB region, they still seem to be about lower by 10% from peak levels as opined by several experts.
What else should you know?
The average selling price for detached properties in Toronto is expected to increase sometime soon. According to reports, the average selling price percentage touched close to $850,400 in August, 2019. The metrics failed to stay at par with inflation levels which clearly indicates fluctuating movements in real estate.
Further analysis states that the selling prices in the Greater Toronto area for detached properties did not display any major movement over the last 4 years or so. The city has achieved an average selling price of approximately $1,246,392 with 0.17% being the percentage of growth. The average sales price growth percentage is still not at par as per experts, when it comes to the property sizes or quality and hence the overall unpredictability of pricing here.
As per several reports, Greater Toronto or the GTA has witnessed major growth in terms of detached home sales. 3,618 units were sold here for August 2019 with sales growth at an impressive 20.55% for detached homes which is heartening to say the least! Additionally, the City of Toronto contributed 669 units in sales volumes out of this tally. Sales growth percentages were even higher by 2.78% as compared to the 10-year average which is another major positive. The growth figures were considerable for the 905 zone, outstripping the remainder of the GTA as per reports.
The way forward
An increase in new listings is still not enough for taking the detached home segment towards a full recovery as per experts although it is steadily getting there. There has been a positive decline for overall inventory of detached homes, something that all developers desire. 9,915 units were listed for detached homes in August 2018 as per reports and inventory levels came down by 6.13% for August 2019.
Industry experts feel that detached home sales will continue growing while condos also remain top picks for buyers and investors alike. With future economic growth and incomes, demand will continue rising for detached homes and condominiums alike in spite of the mortgage stress test and other regulatory hurdles. The market has absorbed the impact of these radical changes and buyers are now returning to the market in droves, something which is clearly seen through the recovery of the detached home category.