July home sales take off in GTA

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Toronto real estate numbers for July were the best since 2009, with total sales up 16 per cent compared to last year, according to statistics released today by the Toronto Real Estate Board.
“Last month’s sales represented the best July since 2009 and was the third-best July result on record,” said Dianne Usher, president of the TREB. “Despite recent increases in average borrowing costs, home buyers are still finding affordable home ownership options in the GTA.”
TREB reported 8,544 residential sales for July, with new listings added to the Toronto market and active listings up as well, but at a smaller rate.
“We are a year removed from the onset of stricter mortgage lending guidelines and many households who put their decision to purchase a home on hold have reactivated their search,” said Usher. “An increasing number of these households are getting deals done.”
Reflecting tighter market conditions, the average selling price for July sales was up on a year-over-year basis by eight per cent to $513,246, while the low-rise market segment continued to be the driver of overall price growth. 
The average condominium apartment price was also up by more than the rate of inflation on an annual basis, along with an increase in the Home Price Index on a year-over-year basis for all major home types.
This sellers’ market represents what should be a continuing trend, suggests one senior TREB analyst.
“We are forecasting continued average price growth for the remainder of 2013 and through 2014 as well,” said Jason Mercer, TREB’s senior manager of market analysis. “Months of inventory for low-rise homes remain near record lows, suggesting that sellers’ market conditions will remain in place in the second half of 2013. An increase in listings in 2014 would lead to more balanced market conditions and a slower pace of price growth next year, albeit still above the rate of inflation.”

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