The June real estate stats reveal that property sales in the City of Toronto remained strong with higher sale prices and number of properties sold. June 2018 marked the first time in over a year of comparing year over year monthly sales stats that prices rose.
But comparing the first 6 months of 2018 to the same time last year really paints an inaccurate picture. The first few months of 2017 were marked by the most frantic real estate market Toronto has ever seen, even crazier than in the late 1980’s which was the last time Toronto experienced frenetic property price increases.
Early 2017’s dramatic sale prices were fuelled by strong demand that outweighed supply, low interest rates and a belief that property price would never stop going up.
The Ontario Fair Housing Plan introduced in late April was the shock that stopped this frenzied market in its tracks. However, these government measures, while they served as a temporary cooling could not stop demand.
It is this demand that continues to keep property prices strong today. Only a limited amount of supply is available to buyers and the number of people migrating to the city core continues to grow.
During the month of June 3,096 properties were reported sold in the City of Toronto. This compares favourbly with the 3,139 properties sold last year. It was not surprising that the average sale price also popped in June.
In June the average sale price for a property in the City of Toronto came in at $870,559, a 5% increase compared to the $829,479 average sale price last year. As the chart below indicates, the average sale price for all properties sold in the City of Toronto has been making a steady recovery since the beginning of this year.
Demand and supply will continue to play significant roles going forward. It is troubling that only 5,243 properties came to market in June. Last year 6,295 properties came to market, a decline of almost 17%. Also of concern is the fact that active listings were down 4.2% from last year.
What June’s average sale price of $870,559 doesn’t reveal is the fact that it was achieved notwithstanding that the high-end of the market continues to lag. In June 166 properties were reported sold having a sale price of $2 Million or more. Last year 160 were reported sold over the same period.
On a year to date basis 787 properties in this price category have been reported sold, a stunning reversal from the 1,387 that sold last year. June’s results are, however, encouraging, and as continued positive variances are produced through the balance of 2018, the higher-end will begin participating equally with the rest of the residential resale market.
The long-term problem will become affordability. Average sale prices are starting to inch towards the numbers that prompted the Liberal government to implement the 15% foreign buyers tax. In the city of Toronto, the average sale price for all properties sold was $870,559, approximately 9 times the average household annual income.
The resilience of the Toronto market makes it clear that if there is insufficient supply, and growing demand, no amount of government engineering will make housing more affordable. It will take a collective political will at the municipal, provincial and federal levels to address the supply issue. Unfortunately, we have seen no collective initiative in this regard.
Victoria Boscariolis a real estate agent in Toronto Canada with Chestnut Park Real Estate Limited Brokerage. With over 20 years experience, Victoria has been helping people successfully buy and sell condos and houses in Yorkville and downtown Toronto. As a Certified International Property Specialist (CIPS) she has worked with Buyers from around the world moving to Toronto from China, Russia, Brazil, India, South Africa, United Arab Emirates, Jordan, Cyprus, Italy, Germany, The United Kingdom, Australia and the United States. By building an international marketing strategy for every property she puts up for sale, Victoria's listings of Toronto homes and luxury condos get global exposure that attract qualified buyers from around the world.