Demand for homes in Toronto continues and home prices keep spiraling up. Last month, the average home price for the region of Toronto reached a record high of $746,546 as released by the Toronto Real Estate Board on Wednesday. That’s an increase of 16.8% compared to a similar period last year!
Home prices in Toronto have been steadily increasing over the past year and more, fueling discussions about housing prices in the city for which the board plans to release additional research on.
Ever Increasing Demand
TREB president Larry Cerqua says that the lack of supply for homes in the GTA should be discussed as an important matter in the coming months when local, provincial, and federal levels of government discuss the topic.
He added that although there is no doubt about the fact that the demand is at a record level, it is the would-be home buyers that are facing this ever-growing challenge of finding a home amidst the declining supply in listings.
What Cerqua says is true. New listings in June was actually down by 3.8%, although TREB recorded 12,794 sales in June, an increase of 7.5% more sales. This only means that the already low supply is a lot smaller now while more people are still looking for homes.
This low supply partly caused by reluctant homeowners who are unwilling to let go of their properties, but who can blame them when finding a new one is not easy either. Although some homeowners acknowledge and feel the need to upgrade, especially if they have a growing family, they are choosing to renovate rather than move.
Skyrocketing Home Prices
It should be noted that home prices rose up to an average of $775,400 in the city of Toronto in June. The average for the same month last year is almost $100,000 less, coming in at just $682,489. That’s a huge leap!
Earlier this week, we shared in some interesting nuggets of information in our Unbelievable Facts About Toronto Real Estate article. We’ve shared that a detached Toronto home will now cost you more than $1.2 million on average, leaping 15.2% more compared to a similar period just a mere 12 months ago.
Detached homes across the region rose up about 20% in prices over the past year. Townhomes increased 14.9% and highly in demand but low in supply semi-detached homes rose 16.4%. In the same period, condo prices increased by just 7.7%.
Fueled by Migration?
A provincial working group has been recently announced by the federal government and was tasked to look at policy options that can cool the still climbing Toronto housing market. They also promised to take a closer look into how foreign investments might be fueling the high prices in both the Toronto and Vancouver area.
GTA is expected to have an additional 2,800,000 new residents over the next 25 years, a significant portion of which would no doubt be from outside Canada. However, the Toronto migration boom is also partly because more and more Canadians are now planning to make Toronto their future home.
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