After new-home sales in the GTA hit a 20 year low in April and Toronto area home prices dipped slightly in May, it looks like June finished with good news. June prices inched up slightly, with the average house price increasing by two percent year over year and going up by just over three percent compared to May’s prices. In addition, there was a 2.4 percent increase in the number of sales last month as compared to June 2017. This puts the number of sales month over month as increasing at 17.6 percent.
Overall, this is good news for the Toronto housing market, as it indicates buyers are starting to return to the market after a period of change and uncertainty in light of January’s mortgage rules changes.
With condos becoming an increasingly popular housing choice, and higher priced condos showing greater movement on the market, it is perhaps not surprising that they increased in price over the last twelve months. More demand has driven up prices by 9.5 percent, compared to this same time last year, and the real estate board also expects the increase in condo sales is partly to blame for the overall market decline this year: there is a different mix of homes on the market in 2018 compared to 2017 and experts are hoping this will be a positive influencer when it comes to seeing the market improve.
Jason Mercer, Toronto Real Estate Board’s director of market analysis, says that this current mix of homes, the way the market stands and more listings on the market, could mean that “competition between buyers will increase, exerting increased upward pressure on home prices.”