Toronto Real Estate Market Report - July 2016
Toronto Real Estate Market Report - July 2016 [All statistics via Toronto MLS Market Watch]
Another record has been broken in July with 1% more sales transaction than this time last year according to the MLS system, mostly due to sales in the condo segment. Condos are still a more affordable entry level into the real estate market compared to freehold low density housing.
GTA demands for homes are strong, a reflection of strong job growth, wage increase above inflation and record low borrowing rates.
Low rise housing segment still remains the highest demand due to the shortage of available listings for buyers currently looking in the market. The pent up demand is also driving up the price of houses in this sector with double digit price growth. BILD released the numbers in July citing low rise homes have more than doubled in the last decade. The building boom in the last decade has primarily been focused on densification in the urban areas, and not on low rise housing. The market has seen the steepest increase in the freehold market. Move-up buyers who are currently looking for low rise has come to realize that a $1 million price tag is no longer a luxury price, and that may only get you a house that still requires improvement costs for a substantial renovation. Whether the government will intervene in solving the housing supply issue by imposing a similar metro Vancouver foreign buyer tax for Toronto to free up inventory is still to be seen. However, CBC has reported that Ottawa real estate market is seeing the ripple effect of the foreign buyer tax with Vancouver investors looking elsewhere. Market analysts and the real estate boards are monitoring this with great interest. If you desire to live in a detached home but want to keep your budget lean, the good news is that there are some wide semis and row homes out there that are often missed, and could offer many of the same benefits as living in a detached home for a modern day family. For the more ambitious, look for the 50s detached urban bungalows at the edge of the core. Many are attached to under-utilized land zoned for higher density that can accommodate a second storey or rear addition.
Let me help you find a creative solution for your next home in this challenging real estate market. If you would like a more comprehensive real estate report based on your neighbourhood or building, please don't hesitate to get in touch to obtain a customized report through me.
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