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TORONTO, September 5, 2013 – Greater Toronto Area REALTORS® reported 7,569 residential transactions through the TorontoMLS system in August 2013. This represented a 21 per cent increase compared to 6,249 sales in August 2012.
"Sales were up strongly this past August for all major home types compared to last year. Many households have accounted for the added costs brought on by stricter mortgage lending guidelines and have reactivated their search for a home. These households have found that a diversity of affordable ownership options exist throughout the GTA," said Toronto Real Estate Board President Dianne Usher.
The average selling price for August 2013 was $503,094 – up by almost 5.5 per cent compared to the average of $477,170 in August 2012. The MLS® Home Price Index (HPI) composite benchmark was up by 3.7 per cent over the same period.
"Despite an increase in borrowing costs during the spring and summer, an average priced home in the GTA has remained affordable for a household earning an average income. With this in mind, tight market conditions are expected to promote continued price growth through the remainder of 2013," said Jason Mercer, TREB’s Senior Manager of Market Analysis.
"Whether it's first-time homebuyers entering homeownership, empty-nesters looking to downsize or professionals seeking a shorter commute, condos appear to remain a popular option for urban Canadians," said
The Report notes economic factors affecting the housing market, such as employment, interest rates and population growth, will only undergo moderate changes. Employment is expected to rise modestly in the medium-term and interest rates are expected to increase gradually, while population expansion and demographics will continue to support demand in regional markets.
"As condo starts near past averages and inventories edge closer to demand, we are seeing the condo market stabilize both in terms of the price of existing units and the volume of new construction," said
Resale prices for condos are expected to rise next year in all eight cities studied, with
Average Resale Condo Price by City: Forecast
|Italics indicate percentage change from previous year.|
|Sources: The Conference Board of Canada; CMHC Housing Time Series Database; Canadian Real Estate Association; Québec Federation of Real Estate Boards. Average resale prices are used for Québec City and Montréal; median resale prices are used for the rest of the metropolitan areas. Resale and average prices in Montréal and Québec City include all condo styles, not just apartments.|
Produced twice a year, the Metropolitan Condo Outlook is commissioned by Genworth Canada from the Conference Board of
SOURCE Genworth Canada www.genworth.ca.
Here are the numbers from our June 2013 monthly update on the GTA new home market:
High Rise: 1,251 sales; down -46% from June 2012; down -38% from 10 yr. avg
Low Rise: 1,090 sales; up +6% from June 2012; down -34% from 10 yr. avg.
Total New Homes: 2,341 sales; down -30% from June 2012; down -36% from 10 yr. avg.
For further information on the new home market at the end of June 2013 please see the short explanatory video from RealNet President, George Carras.