Julia Metus
REALTOR™, AEA, SRS, PSA, CLHMS™, GUILD™
Realty Executives Plus Ltd.
The Toronto Real Estate Board announced that the Greater Toronto area reported a record 9813 sales through TREB’s MLS® in August 2016. There were 2 additional trading days in 2016 compared to 2015 with 7943 sales so the 23.5 per cent increase in transactions, translates to be closer to 13 per cent when the additional trading days are factored into the results. Check out the graph below for the results for Toronto and neighbouring communities in the Greater Toronto Area (GTA)
Demand for ownership housing continues with a strong regional economy, growth in average earnings and low borrowing costs contributing to this demand. In addition, the number of new listings is down for the same period last year. Sellers appear to be choosing to "stay put" and renovate versus upsize to fit their needs, given the very competetive buyers market. It may be very easy to sell your property for top dollar in this market but the low number of properties for sale, makes finding your next home and competing with other buyers for your new property, a much more difficult task. First time buyers entering the market with downpayments (from 5% to under 20%) require Canada Mortgage and Housing Corporation (CMHC) insurance to get get access to interest rates of buyers with downpayments of 20% or more. While getting the competetive rates is helpful, they are having a difficult time competing with those buyers with higher downpayments who are more likely to put offers on properites without financing conditions. Because sellers love certainty, I have seen firsthand that they are accepting offers from buyers with lower offers but with no financing conditions.
The MLS® Home Price Index (HPI) for August 2016 was up by 17.2 per cent on a year over year basis to $710,410. The MLS® HPI
is calculated using a sophisticated statistical model that is a hybrid of both the repeat sales and hedonic price approaches. The MLS® HPI takes into account a home’s quantitative attributes (e.g. the number of rooms it has; square footage etc.) and qualitative attributes (e.g., whether it has a finished basement, a view etc.). You can read the full report here. If you care to review previous reports, contact me at JuliaMetus@RealtyExecutives.com
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Summary of Toronto MLS Sales and Average Price August 1 – 31, 2016 |
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|
2016 |
2015 |
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|
Sales |
Average Price |
New Listings |
Sales |
Average Price |
New Listings |
|
|
City of Toronto ("416") |
3,416 |
677,241 |
4,480 |
2,793 |
606,706 |
4,861 |
|
Rest of GTA ("905") |
6,397 |
728,122 |
7,929 |
5,150 |
601,813 |
7,703 |
|
GTA |
9,813 |
710,410 |
12,409 |
7,943 |
603,534 |
12,564 |
|
TorontoMLS Sales & Average Price By Home Type August 1 – 31, 2016 |
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|
Sales |
Average Price |
|||||
|
416 |
905 |
Total |
416 |
905 |
Total |
|
|
Detached |
863 |
3,586 |
4,449 |
1,206,637 |
905,610 |
964,002 |
|
Yr./Yr. % Change |
14.8% |
24.0% |
22.1% |
18.3% |
23.3% |
21.5% |
|
Semi-Detached |
208 |
651 |
859 |
774,700 |
594,033 |
637,780 |
|
Yr./Yr. % Change |
-8.8% |
15.6% |
8.6% |
16.4% |
20.6% |
17.6% |
|
Townhouse |
357 |
1,154 |
1,511 |
614,638 |
536,256 |
554,775 |
|
Yr./Yr. % Change |
14.1% |
25.8% |
22.8% |
16.9% |
18.4% |
17.7% |
|
Condo Apartment |
1,964 |
822 |
2,786 |
446,612 |
349,194 |
417,869 |
|
Yr./Yr. % Change |
33.5% |
28.6% |
32.0% |
9.8% |
9.2% |
9.8% |
|
August 2016 Year-Over-Year Per Cent Change in the MLS® HPI |
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|
|
Composite (All Types) |
Single-Family Detached |
Single-Family Attached |
Townhouse |
Apartment |
|
TREB Total |
17.23% |
19.90% |
18.88% |
15.85% |
9.52% |
|
Halton Region |
19.03% |
19.28% |
20.13% |
16.61% |
- |
|
Peel Region |
18.06% |
18.52% |
19.75% |
16.29% |
12.69% |
|
City of Toronto |
13.53% |
17.29% |
15.12% |
14.70% |
8.89% |
|
York Region |
22.00% |
24.31% |
21.76% |
16.10% |
9.14% |
|
Durham Region |
20.97% |
21.20% |
21.96% |
18.17% |
12.89% |
|
Orangeville |
19.26% |
19.58% |
17.23% |
- |
- |
|
South Simcoe County1 |
21.42% |
21.49% |
21.82% |
- |
- |
