Not too many people expected a huge increase in Real Estate sales this Fall compared to the same period last year. Actual increase was about 30%! 7,411 single family homes sold in September 2013 compared to 5,687 transactions reported in September 2012. This brings the year-to-date, total of residential sales reported through the Toronto MLS system to 68,907 during the first nine months of 2013, and on target to over 90,000 homes sales in 2013, making it one of the most active years for real estate trading hands.
“It’s great news that households have found that the costs of home ownership, including mortgage payments, remain affordable. This is why the third quarter was characterized by renewed growth in home sales in the GTA. We expect to see sales up for the remainder of 2013, as the pent-up demand that resulted from stricter mortgage lending guidelines continues to be satisfied”, said Toronto Real Estate Board President Dianne Usher.
The average selling price for September transactions was $533,797 – up by 6.5 per cent year-over-year. Through the first three quarters of 2013, the average selling price was $520,118 – up to over four per cent compared to the first nine months of 2012.
The MLS Home Price index composite benchmark for September was up by 4 per cent year-over-year. The annual rate of growth for the composite benchmark has been accelerating since the spring of 2013.
“The price growth story in September continued to be about strong demand for low-rise home types, coupled with a short supply of listings. Even with slower price growth and month-to-month volatility in the condo apartment market, overall annual price growth has been well above the rate of inflation this year. This scenario will continue to play our through the remainder of 2013”, said Jason Mercer, TREB’s Senior Manager of Market analysis.
The real reason for Toronto’s strong real estate market is immigration. Every year about 150,000 of new immigrants are coming to Ontario. Most of them are settling down in GTA. They all need to live somewhere. That has created the demand for houses and the resulting construction boom. Those who cannot afford to buy are renting and that means condominiums. Downtown condominiums are being sold at a bargain price of $500-$700 per sq ft, with rental rates of $1,800 – $2,200 per month for an average 600 sq ft unit. This represents a great investment opportunity in many different ways.
The market will continue to be strong over the next several months and there are many great opportunities for either investing or upgrading your home.