Thursday Sep 15th, 2016
Well it's been an amazingly hot summer for the weather as well as the Toronto real estate market. Not only did we set temperature records in the number of days above 30 degrees but the Toronto Real Estate Board continued to set records with the number of sales taking place as well as the average hone price which continues to increase, and now sits at $717,530, 15% over December's $622,120 average price.
August's record setting 9813 sales through TREB's MLS System was created by high demand, a strong economy, growth in average earnings and low borrowing costs. With this high activity, the listing stock, the number of listings available for sale, continues to be lower than it was last year, creating the demand which has resulted in increased prices.
This month, the Bank of Canada signalled a continued stable and extraordinarily low interest-rate path in the months ahead, so there is little to brake the Toronto market's near-term momentum.
The Vancouver market also bears monitoring because it may have impact on our market. In Vancouver, their 3,362 sales in August were down sales 26% compared to August of 2015. Real estate like everything else is a question of confidence, and the new foreign buyer tax appears to have impacted the Vancouver market by reducing foreign buyer activity and causing some uncertainty amongst local home buyers and sellers.
While I don't want to be fear mongering, without a doubt some of the foreign investors will end up purchasing in Toronto versus Vancouver, thus adding more buyers into our already stressed marketplace.
So the first thing is not to panic. If you're in the market to upgrade your home or buy an investment property, it's still an excellent time and the right salesperson, (me!!), will be able to help you achieve your goals. The key is doing it now rather than later. No one can guarantee the state of the market nor do I have a crystal ball but if you're buying an investment property that carries, or buying a home that you're going to live in and enjoy for many years, then the market is irrelevant as it will always to up. Our prices in Toronto are still much lower than other equivalent centres around the world!
Give me a call let's chat and I'll be happy to put my expertise to work for you.
If you or a friend are considering purchasing an investment property, (yes, 2016 is a great time) or if you have any real estate questions on your mind, I hope you'll remember to call me at (416) 897-2805 or e-mail me at firstname.lastname@example.org! I'd be happy to answer any questions you may have!