The Toronto real estate market has been in overdrive of sorts over the last few months and there has been steady growth and progress for the sector. Experts, who were earlier fearing a decline in sales activity, are now happy with how the market is responding. Many experts believe that Toronto and large parts of the Greater Toronto Area (GTA) can never really be largely affected by a slump.
This is because Toronto is one of the major economic epicenters of Canada and has consistent growth in population, immigration of skilled workforce personnel and the arrival of major MNCs, start-ups and tech companies to keep the real estate market going. As a result, demand has always been steep for condos and other housing types in Toronto and its suburbs, leading to sky-high prices. Demand is still higher than supply which is something that has kept prices at stratospheric levels. Also, the market has absorbed the impact of the mortgage stress test and increasing interest rates. As a result, fence sitters are now making their presence felt in the market and how!
Toronto suburbs contribute handsome sales increase in August
While sales figures increased by a whopping 13% in August 2019 for the entire Greater Toronto Area (GTA) as compared to August 2018 as per reports and TREB’s (Toronto Real Estate Board) MLS framework, a major contribution came from several city suburbs. August was the 5th consecutive month which witnessed growth in home sales by a whopping double digits.
Growth in sales for low-rise homes, i.e. semi-detached, detached and row houses was a handsome 17% as compared to August 2018 while condominiums witnessed sales growth of 7% throughout the GTA (Greater Toronto Area). Average home prices touched $795,682 in the GTA last month which was higher than August 2018 by 3%. The average prices for low-rise homes also went up by 2% while condo prices rose by 5% on the back of sustained demand.
A major part of this growth can be attributed to considerable sales growth in the York, Durham and Peel regions. These were the key regions which witnessed sizable sales growth last month for various reasons. The Peel and Durham regions are some of the most affordable zones to buy property in the Greater Toronto Area and buyers are now increasingly looking for localities where prices are more reasonable on the pocket. The average price for low-rise homes in Peel and Durham stood at $850,489 and $638,154 respectively for August, 2019. The average price for a low-rise home stood at $1,165,650 in Toronto.
The York Region is the second costliest region to buy property in the Greater Toronto Area (GTA). The average pricing for a low-rise housing unit touched a whopping $1,047,820 last month on the back of growing demand. York Region was affected when home prices came down in the year 2017. It witnessed the highest de-growth in terms of average pricing and sales as compared to other GTA markets and after facing a market lull for two years, it is now back in business with homebuyers expressing more confidence in the renewed stability of the market here. This new confidence and prices which are lower than peak levels in 2017 are major factors contributing to higher sales in the York Region. All in all, the GTA market is steadily inching back towards a full recovery should the current momentum continue.