Average home re-sale price rose up 6% or $43,000 in September as compared to the previous month. The data was from the Toronto Real Estate Board’s records.
Home sales were also down by 35% as realtors were able to sell just 6,379 homes. Just a little over two thirds compared to September 2016.
The above occurrences are making realtors think that the market is levelling off or could be waking up.
Realsophy president John Pasalis says that the above are good signs because they show that the market isn’t falling further although he was quick to add that price increases are often seasonal.
The average home price for September this year is about $20,000 or 2.6% more than the previous year’s but the number of homes sold is 35% lower. The drop is attributed to the drop of detached homes sale of 40%.
Condo sales rose up at an average of 20% more than a similar time last year largely to prices attracting first-time buyers. It should be noted that the number of listings fell down in Toronto but increased for the rest of the regions. East Gwillimbury, Aurora, and Richmond Hill actually have an oversupply that offers are often below the listed price, a huge contrast to what is happening in Toronto shared Caroline Baile, an Aurora-based broker from Royal LePage. She added that although they do get sales, they average at just 97% of listed price.
Realtors are saying that what is happening in the area is very much like having two markets, with the downtown and surrounding areas in high demand and low inventory therefore commanding a higher price, and then the opposite in areas outside the main hubs. Coveted locations are selling well, with offers coming in even before the home is officially listed more so in the first third of the year.
Its not just the above one has to think of when trying to find a home in the Toronto area, the banks should be watched as well. Real estate agents are on high alert mode regarding new announcements from the Office of the Superintendent of Financial Institution as the bank regulator is due to initiate new rules to protect consumers and lenders from increases in interest rates in the future.
The new guideline will affect uninsured mortgage applicants, making sure that they can cover required downpayments to qualify for bank loans that are now charging interest that is 2% above the central bank rate.
TREB’s market research shares that things are looking good because despite the changes in housing rules, borrowing rates in Toronto remain low and the population maintains a high employment rate. It also looks like people have learned to bid their time when buying a home and that the foreign buyer tax has had no adverse effect on the real estate market.