I invite you to check out my article, which shows a graph of Toronto real estate average prices since 1953. To allow a clear picture of the fluctuation of property values, these average prices have been corrected for inflation.
In the video published on April 5th, 2017, Toronto Real Estate Board Senior Manager, Jason Mercer, discusses real estate sales in the Greater Toronto Area in March. In March MLS sales were 17.7% higher than at the same time last year. The strongest increase in the number of sales was for condominium apartments and detached houses.
The number of new listings also increased, by 15.2%, as compared to March 2016. But while more properties were being listed, the growth in sales was greater, and the real estate market conditions in the Greater Toronto Area continued to tighten.
All property types experienced strong price growth, with the highest increase - 34.4% - for semi-detached houses in the GTA, followed by 33.4% for detached houses, 33.1% for condo apartments and 32.9 for townhouses. Home Price Index (HPI) compares prices of similar properties, and is a more reliable indicator, shows the highest growth (over 30%) for detached houses, with townhouses just over 28%, semi-detached just under 28% and condo apartments at 24%.
Home price growth is a function of supply and demand. To bring the housing market back into balance a substantial period of time with growth in listings higher than that in sales will be required.
Toronto Real Estate Market according to TREB's Mercer - 2nd quarter 2016
In the next video released on August 11th and running under 8 minutes in length, Jason Mercer discusses the real estate market in the first half of 2016, and provides a forecast for the remainder of the year. Mr. Mercer talks about a strong growth of MLS sales in Toronto and surrounding area. Sales of properties of detached, semi-detached and attached homes, condominium townhouses and apartments have increased by slightly more than 9%, compared to the same period a year earlier. Current pace of real estate sales will likely lead to the second consecutive record year.
Demand for houses, Mr. Mercer says, is sound, with the Greater Toronto Area economy performing better than other metropolitan areas across Canada, and the average income growth above the inflation level.
With very low inventory levels we have seen a strong price growth in all segments of the market, due to competition between prospective buyers. Shortage of listing inventory was, at least in part, due to the reluctance of existing owners to list their property for sale while it is not certain they would be able to find a property meeting their needs, prompting many home owners to stay and renovate, instead of selling. Sales to new listing ratio has been extremely high, at almost 71 percent.
For the first 7 months of 2016, the year-over-year price growth for properties of all types was over 15%. Detached house prices increased by 18.7%. Condominium apartment prices went up by 7.8%.
We don't expect the supply and demand in the real estate market to change over the remainder of the year. Borrowing costs are expected to remain very low, and there is no relief in sight where it comes to supply. Average selling price increase for 2016 is likely to be more than 15%.
Mr. Mercer also addresses the concerns over the strong price growth in all segments of housing, and discusses some actions the government can undertake to ease that growth, including the tax for foreign buyers imposed in British Columbia at the beginning of August.
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