This July we have seen sales increase significantly in the GTA by 16%, the biggest increase we have seen in the market since 2009. TREB (Toronto Real Estate Board) has reported that this July was the 3rd best for sales on record. Based on this trend, we have also seen an increase in the average selling price increasing by 8% to $513,246.00 in Toronto based off the sales of low-rise homes. This increase was not just special for low-rise homes as we also seen in an increase in sales and average pricing for condos in Toronto and GTA surrounding areas. The Approximate increase was 10.5% up in sales and an overall increase in the sale price up 3.4% to $338,854.00. The research also suggests that home prices will continue to climb for the remainder of 2013 and into 2014.
But the better question of all of this is why, why the sudden increase in July? Several factors were contributions to this such as:
1. This July compared to July 2012 when the new mortgage rules were introduced by the government, mortgages were not being funded as plentiful because people were still trying to adapt.
2. This July sales were steadily reenforced onto people as mortgage rates dramatically started to jump in June. This enticed buyers to ‘act now’ and take advantage of the low rates while they still had the opportunity as they are predicted to steadily rise for the next couple of years.
3. The weather could have been a contributing factor, as we had a wet cold start and end to the spring season. This could have detoured buyers to wait until conditions were favorable for searching to find that dream property.
4. Finally, simply put, the lack of supply offered in the GTA, Toronto specifically, is what aided our market in terms of sales. The demand is there and the supply is somewhat limited, depending on your search criteria.
Overall, the highest property in demand this year are semi-detached homes in the city. They seen an increase in both Toronto and the GTA surrounding areas of about 20% up from last year. Detached homes and condo sales also saw a smaller increase.
Based on the statistics released for the month of July, home buyers are adjusting to the new mortgage rules put into action a little over a year ago. The market has adapted and so has the buyer. These statistics show for a bright outlook for the rest of the year and hopefully into 2014. If you are thinking of buying today, contact Robert Clancy for your mortgage and act now!