Monday, August 20, 2018

■Market Watch | August, 2018


GTA REALTORS® Release July Stats

August 3, 2018
- Toronto Real Estate Board President Garry Bhaura announced strong growth in the number of home sales and the average selling price reported by Greater Toronto Area REALTORS® in July 2018.

"Home sales result in substantial spin-off benefits to the economy, so the positive results over the last two months are encouraging. However, no one will argue that housing supply remains an issue. The new provincial government and candidates for the upcoming municipal elections need to concentrate on policies focused on enhancing the supply of housing and reducing the upfront tax burden represented by land transfer taxes, province-wide and additionally in the City of Toronto," said Mr. Bhaura.

Residential sales reported through TREB's MLS® System for July 2018 amounted to 6,961 – up 18.6 per cent compared to July 2017. Over the same period, the average selling price was up by 4.8 per cent to $782,129, including a moderate increase for detached home types. New listings in July 2018 were down by 1.8 per cent year-over-year.

Preliminary seasonal adjustment pointed to strong month-over-month increases of 6.6 per cent and 3.1 per cent respectively for sales and average price. Seasonally adjusted sales were at the highest level for 2018 and the seasonally adjusted average price reached the highest level since May 2017.

The MLS® Home Price Index (HPI) Composite Benchmark for July 2018 was down slightly compared to July 2017. However, the annual growth rate looks to be trending toward positive territory in the near future.

"We have certainly experienced an increase in demand for ownership housing so far this summer. It appears that some people who initially moved to the sidelines due to the psychological impact of the Fair Housing Plan and changes to mortgage lending guidelines have re-entered the market. Home buyers in the GTA recognize that ownership housing is a quality long-term investment," said Jason Mercer, TREB's Director of Market Analysis.

Wednesday, August 1, 2018

■Condo & Rental Market Report | Q2 2018


Condo Market Report

Average Condo Price Continues to Climb in Q2 '18
July 17, 2018 -- Toronto Real Estate Board President Garry Bhaura announced that the average selling price for condominium apartments sold through TREB's MLS® System in the second quarter of 2018 was up by 5.4 per cent year-over-year to $561,338.

The highest average selling price was in the City of Toronto, at $603,480 – up 6.5 per cent compared to Q2 2017.

"Condominium apartments have outperformed other housing types over the past year, in terms of price growth. It has been a seller's market in many neighbourhoods for this home type, which is why we have continued to report average price growth more than twice the rate of inflation," said Mr. Bhaura.

Condominium apartment sales through TREB's MLS® System amounted to 6,837 in Q2 2018 – down 16.5 per cent from 8,188 sales reported in Q2 2017. However, the number of new condominium apartment listings was down by 15.9 per cent on a year-over-year basis. The fact that sales and new listings were down by similar annual rates suggests that market conditions have remained similar over the past year, which has supported continued price growth.

"First time buyers continue to be a key driver of condominium apartment demand. The relative affordability of condos versus low-rise home types, especially with the onset of stricter mortgage qualification guidelines and generally higher borrowing costs, has also been a key factor underpinning tight condo market conditions and continued average price growth," said Jason Mercer, TREB's Director of Market Analysis.


Rental Market Report

Strong Condo Rent Growth Continued in Q2 2018
July 17, 2018 – Toronto Real Estate Board President Garry Bhaura announced that Greater Toronto Area REALTORS® continued to report strong average rent increases for GTA condominium apartments rented through TREB’s MLS® System in the second quarter of 2018 relative to Q2 2017. “The demand for condominium apartment rentals remained strong compared to the number of units available for rent. Current market conditions point to the fact that renters have little choice when it comes to finding a place to live. Governments need to look at ways to increase the supply of rental accommodation, both in terms of purpose-built rental properties and individual investor-held units. This would go a long way to easing the pace of rent growth in the GTA,” said Mr. Bhaura. The average one-bedroom condominium apartment rent increased by 10.4 per cent on a year-over-year basis to $2,055 in Q2 2018. The number of one-bedroom condominium apartments rented through TREB’s MLS® System amounted to 4,879 – a 2.9 per cent decrease compared to Q2 2017. The average two-bedroom condominium apartment rent increased by 8.8 per cent on a year-over-year basis to $2,755 in Q2 2018. The number of two-bedroom condominium apartments rented through TREB’s MLS® System amounted to 3,104 – a 1.2 per cent increase compared to Q2 2017. “Recent government policy changes, including rent controls, have not alleviated the strong upward pressure on monthly rents for available condominium apartments in the GTA. New, investor-held condominium apartments entering the market have not been enough to provide the needed balance in the condo rental market. As a result, the strong competition between renters continues to sustain double-digit or near-double-digit annual average rent increases,” said Jason Mercer, TREB’s Director of Market Analysis.