July 4, 2019 | Buying
The Toronto Real Estate Board’s new President, Michael Collins, revealed a 10.4 per cent increase in June 2019 sales statistics compared to that of June 2018 with a total of 8,860 sales through the Greater Toronto Area. The number of new listings remained stationary during the month of June and we witnessed a 5.7 per cent decrease in active listings.
Higher Demand
Comparatively, sales and new listings statistics for the first half of 2019 versus the first half of 2018 show similar results to those displayed this past month. Sales were up by 8.5 per cent, while new listings were up by less than one per cent. These statistics demonstrate that Buyer competition has in fact increased, resulting in improved price growth within the real estate market.
The Greater Toronto Area is known for its continued growth in population and employment opportunities which attracts people to our region from all around the world who clearly need a place to live. As the demand for homeownership and rental housing continues to grow over the next year, the Toronto Real Estate Board hopes to witness the alleviation of constrained housing supply, more flexibility with the OSFI two percentage point mortgage stress test and permissible amortization periods on insured mortgages.
The Overall Picture
The overall average selling price in June 2019 was $832,703 – up by three per cent compared to the average of $808,066 in June of last year. The MLS Home Price Index Composite Benchmark was up by an annual rate of 3.6 per cent. The average selling price was $810,661 for the first half of 2019, which exposed an increase of 2.4 per cent year-over-year. We owe the price growth to higher density market segments, including semi-detached houses, townhouses and condominium apartments.
Buyers have definitely regained their confidence and shifted off the sidelines this spring. As a result, we’ve seen strong year-over-year price growth during the second quarter. Although, due to the stationary number of new listings, the market conditions have intensified and prices increased. These conditions impacted the higher density home types which provide more affordable housing options under the OSFI stress test. The reason being, on average these home types tend to be less expensive compared to the traditional detached home prices.
If you’re looking to take part in the real estate market but weary because of the demand, not to worry, we’ve got you covered. Here at Michael Maxwell Homes, we help guide you through the everchanging conditions of the Toronto Real Estate Market in order to achieve the best results!