Ash Solhdoust

Pandemic not slowing down home sales!

Good news for Investors.

Toronto Real Estate Board President Mark McLean announced that Greater Toronto Area REALTORS reported 7,998 residential transactions through the TREB MLS System in August 2015. This result represented a 5.7 per cent increase compared to 7,568 sales reported in August 2014. On a GTA-wide basis, sales were up for all major home types. The annual growth rate in new listings was greater than the annual growth rate in sales, but active listings at the end of August were still do...wn compared to last year. This suggests that sellers’ market conditions remained in place, especially where low-rise home types like singles, semis and townhouses were concerned. Buyers in the GTA remain confident in their ability to purchase and pay for a home over the long term. They see ownership housing as a quality investment that has historically produced positive returns while at the same time providing owners with a place to live in their chosen community, said Mr. McLean. Both the MLS Home Price Index (HPI) Composite Benchmark and the average selling price for all home types combined were up substantially in August compared to the same period in 2014, with both increasing by approximately 10 per cent year-over-year. A record year for home sales continued to unfold in August as competition between buyers exerted upward pressure on selling prices. It was encouraging to see annual growth in new listings outstrip annual growth in sales, but we will need to see this for a number of months before market conditions become more balanced," said Jason Mercer, TREB's Director of Market Analysis.

TORONTO, August 6, 2015 - Toronto Real Estate Board President Mark McLean announced record home sales for the month of July. Greater Toronto Area REALTORS reported 9,880 sales through TREB's MLS System, representing an eight per cent increase compared to July 2014. The number of transactions were up for all major home types, including a double-digit year-over-year increase in condominium apartment sales. "As we move towards a new record for home sales this year, it is impor...tant to point out that home ownership demand has been driven not only by low borrowing costs, but also by the fact that the GTA economy has been performing quite well, with the unemployment rate lower compared to last year. Home buyers remain confident in the long-term benefits of owning a home," said Mr. McLean. The MLS Home Price Index (HPI) Composite Benchmark, which accounts for benchmark home prices in communities throughout the TREB market area, was up by 9.4 per cent year-over-year in July 2015. Over the same period, the average selling price was up by a slightly greater amount, growing by 10.6 per cent annually to $609,236. Detached homes continued to lead the way in terms of price increases, with annual growth in the average selling price outstripping growth in the MLS HPI detached benchmark. This suggests that there continued to be a greater share of high-end homes sold this year compared to last. "With the level of inventory in the GTA trending below two months, many listings continued to generate a lot of interest from buyers. Not surprisingly, this supported further price increases well-above the rate of inflation. Assuming similar interest rate and economic environments over the next five months, strong price growth will remain the norm for the rest of 2015," said Jason Mercer, TREB's Director of Market Analysis.