glow by Kevin
The real estate market in June 2014 didn't slow down, although summer had already started. The latest figures from the Toronto Real Estate Board suggest continually strong increases in residential sales toward the summer.
The number of sales reported through the TorontoMLS system for the whole Greater Toronto Area (GTA) in June 2014 increased 15.4 per cent compared to June 2013, recording 10,180 transactions. We saw 7.5 per cent average price growth in the GTA as well. As Jason Mercer, the Toronto Real Estate Board's (TREB) Senior Manager of Market Analysis, explained:
With less than two months of inventory in many parts of the GTA, it makes sense that we continued to experience very strong price growth in June. This is especially the case for low-rise home types like singles, semis and townhouses. Strong price growth for these home types will continue through the remainder of 2014. Despite higher inventory levels, the condominium apartment market segment has benefited from enough buyer interest to result in above-inflation price growth.
There's been a lot of talk recently about the quality of new condo buildings in Toronto. Many people wonder what will happen with the condos constructed by irresponsible builders who try to cut their expenses as much as possible.
BNN posted an interesting interview with Ute Lehrer, an associate professor at York University, about the issues we're facing in the current condo housing market in Toronto. I always recommend buyers look for quality first because a lower purchase price might result in additional expenses several years later.
What are your thoughts? What would you pick: a better-built condo or a better location at the price of renovation expenses after 10 or 15 years? Let me know in the comments section below the article or contact me if you have any questions about buying or selling.
City of Toronto Sales
As I mentioned above, sales increased. The City of Toronto's total sales rose 16.23 per cent compared to June 2013, reaching 3,795 sales last month.
All housing types experienced growth in sales. Detached and semi-detached house sales rose 15.39 per cent and 18.42 per cent, respectively. Detached home sales totalled 1,312, and there 450 semi-detached units sold. Condominium sales rose 18.74 per cent, finishing the month at 1,578 condos sold.
Toronto Central: C02 Area
The June real estate market brought 172 new listings, bumping the overall number of active listings in the C02 area up to 261. In June, sales reached 91 units sold in the C02 area, with an average price of $1,078,442. The price was, surprisingly, 26.94 per cent lower than in June 2013.
The price growth was strong for each segment. New listings were also up compared to June 2013. This suggests that homebuyers in the GTA can afford to pay for a home. As Paul Etherington, president of the Toronto Real Estate Board, revealed:
Generally speaking, buyers feel that home ownership will be a good investment over the long term. This is why we continued to see increases in home sales in June for all major home types across the GTA. Given the degree of pent-up demand in the market today, I would expect to see sales growth continue through the summer.