The month of July was a good one for real estate. Home sales across the GTA reached some of their highest levels for that summer month since 2009. There was an approximate 16 percent increase in house sales, making it, according to the Toronto Real Estate Board, one of the best July’s for sales on record.
According to figures release by TREB, the average selling price of a home also increased to $513, 246. This is largely based on sales of low-rise homes. Condo transactions, and prices as well, went up with a sales increase of about 10 percent across the Greater Toronto Area, compared to the same time last year. The average price of condos sold in July was approximately $338, 854.
“We are forecasting continued average price growth for the remainder of 2013 and through 2014 as well, says TREB senior manager of market analysis, Jason Mercer. “Months of inventory for low-rise homes remain near record lows, suggesting that sellers’ market conditions will remain in place the second half of 2013.”
This sudden surge in sales isn’t simply by chance. A year ago, the market softened, especially condo sales, in light of tougher mortgage lending rules that had been imposed by the government. This led to many first time buyers second guessing making a home purchase.
This July, the year 2013, was different however, as potential home buyers reached into their pockets to land the home of their dreams.
Another factor that may have come into play is weather. The spring market was a washout as the GTA saw some of the heaviest rainfall it has seen in decades. The past winter didn’t help as well, as the cold weather kept potential home buyers indoors, and most likely only searching for homes online rather than actively looking to purchase one.
Highest growth was shown for semi-detached homes, whose sales were up 26.4 per cent in July over the same month in 2012, according to TREB figures. There was a 29 percent spike in sales in the City of Toronto alone.
First time buyers have appeared to have adjusted to the mortgage lending rule changes, and seem to now have the confidence (and the savings) and seem to be out there buying real estate again.
As for the condo market, it is holding up better than observers first expected, and is now seeing firming up of prices, and the number of units for sale remains high.
