Toronto Residential Homes For Sale: Prices at an All Time High!
Wednesday Jun 25th, 2014Share
The numbers seem to be staggering. Last month was the strongest month ever in the history of our real estate market. 11,079 properties for sale were sold - up from 9,946 homes purchased in May 2013. And this is a rise of 11.4% homes sold this May compared to May just one year ago.
And not even shocking anymore, a single-family home purchase in Toronto is averaging an unprecedented price tag of $943,055. And in the surrounding GTA areas (905 area code) homes are selling for an average of $648,438.
Everyone is constantly talking about it still being a Seller's market - and it's true. Based on the number of homes for sale being low and the demand for purchasing a home being high, there's enormous competition among Buyers when a good home gets listed. Multiple offers command the one date for offers and Sellers are reaping the rewards of the ever increasing prices that Buyers are willing to pay. But remember the delicate scales of balance: Sellers sell high, but then even they become the Buyers who have to buy high.
Also driving the surge in affordability is that borrowing costs are at epic lows. And, yes, the economists also know they're poised to stay there until at least the latter part of 2015. However, in some cases even with record low mortgage rates, these can't offset the high selling prices.
Now condos. The usual lament of "there are too many condos on the market" isn't being heard much these days. Condos are being snapped up by investors, first time Buyers and people wanting this new, fresh, stress-free lifestyle. Believe it or not, investors are purchasing 5 - 15 condos at a time because renting them is easy: Tenants would rather lease brand new condos with the 9' ceilings and have a great lifestyle with all the amenities. Toronto condo sales are up 5.4% from last May to this May and prices have increased 7.6% to an average of $401,809.
Another item of note: Real estate related jobs and investments are big factors in driving our economy. The more Buyers are looking for homes to purchase, the more housing starts will fuel employment - something we definitely want to keep high.
Nancy Biderman and Adeana Axler are Award Winning Toronto Realtors and Real Estate Agents. They are in the top 1% of all of the Toronto Real Estate Board’s sales and properties sold in 2012 and 2013. Together, Nancy and Adeana have over 36 years of respected Real Estate expertise and their successful, happy clients constantly refer their families, friends, and business associates. While they service the entire GTA, Adeana and Nancy specialize in Toronto and Thornhill homes & properties.