If you think housing prices in Toronto are high now, brace yourselves. Industry experts and economists expect them to surge as Canada’s biggest city saw another record month in June. Last week, newly appointed Toronto Real Estate Board President Mark McLean announced that GTA REALTORS® reported 11,992 sales through TREB’s MLS® System in June 2015. This number represents an increase of 18.4 per cent compared to the result for June 2014—which paled at only 10,132 sales.
Overall, selling prices for all home types across the city were significantly higher when compared to the numbers for June 2014. Last month, the MLS® Home Price Index (HPI) Composite Benchmark was up by 8.9 per for the same period in 2014, while the average selling price was up by 12.3 per cent in a year-by-year comparison, to $639,184.
According GTA REALTORS®, “High-end homes have accounted for a greater share of overall transactions this year compared to last year.” This is a key factor in the rate difference between the average price and the HPI composite benchmark, which is regarded to be a more accurate system of measuring Toronto Real Estate Market conditions.
Following its upward trend, the average price of a detached home in Toronto was at an astounding $1.05 million, a 14.2 surge over June of 2014. The surrounding 905 area also saw an increase of 15 per cent to $738,000.
Toronto and Vancouver represent Canada’s strongest markets, and if the Bank of Canada cuts its rates again, we can definitely expect another boost in sales. Despite low mortgage rates, the affordability of housing, particularly detached homes remains out of reach for many in these cities. As active listings are still far and few in between, bidding wars for determined buyers show no sign of stopping—nor does the strong upward climb of our robust market.
Mr. McLean could not have started his new career at a better time. With the Pan Am Games in full swing and our city receiving international recognition and accolades, it is clear to local residents that Toronto and its surrounding area is home to a wealth of culture and an economy with a very promising future.