Toronto Real Estate Market Update - July 2018
Wednesday Aug 08th, 2018
Home sales in the GTA were up 18.6% and average selling prices were up 4.8% in July 2018 compared to July 2017. Particular asset classes and neighbourhoods continue to outperform while others do not. Buyers and sellers should seek the advice of a professional Realtor before making any decisions in the present market.
Market demand remains resilient despite government regulations, mortgage rule changes, and interest rate increases over the past year. Tight supply, rebounding demand, and buyer access to credit, particularly subprime mortgage debt, will continue to drive the market in the short term.
Condominiums across the GTA, and especially in Toronto, continue to show strength as buyers priced out of the freehold market settle for condos, millennials step up to purchase their first home, and downsizers seek smaller spaces close to amenities. A strong local economy, foreign investment, and immigration also continue to drive sales and price growth.
The Bank of Canada will announce its next interest rate decision on Wednesday, September 5. Economists are split on the likelihood of a rate hike. The Bank of Canada continues to take a cautious and data-driven approach to rate increases.
Toronto Real Estate Board (TREB) Market Watch Report
Below is a market snapshot of single family and condominium apartment price growth by municipality as of July 31, 2018.
The figures cited in this note are an average. Please contact us for neighbourhood specific information so you can make an informed decision if you are thinking about making a move.
If you want to know how prices are performing by asset class in your specific neighbourhood or any neighbourhood in the GTA you may be interested in, please click here.
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Single Family Home Price Index
Toronto: -0.58% (1 Month), +0.35% (3 Month), +3.52% (6 Month), -1.97% (1 Year)
Mississauga: -0.65% (1 Month), -0.61% (3 Month), +1.70% (6 Month), -2.54% (1 Year)
Brampton: +0.12% (1 Month), +2.35% (3 Month), +4.90% (6 Month), +2.10% (1 Year)
Vaughan: -0.50% (1 Month), -1.19% (3 Month), +0.12% (6 Month), -6.70% (1 Year)
Richmond Hill: -0.74% (1 Month), -0.34% (3 Month), +0.75% (6 Month), -11.66% (1 Year)
Markham: -0.95% (1 Month), -0.81% (3 Month), -1.09% (6 Month), -9.18% (1 Year)
Condominium Apartment Home Price Index
Toronto: +0.16% (1 Month), +1.37% (3 Month), +7.58% (6 Month), +10.15% (1 Year)
Mississauga: +0.29% (1 Month), +1.00% (3 Month), +7.89% (6 Month), +6.89% (1 Year)
Brampton: +1.86% (1 Month), +1.23% (3 Month), +5.50% (6 Month), -0.48% (1 Year)
Vaughan: +0.04% (1 Month), +0.09% (3 Month), +3.76% (6 Month), +3.76% (1 Year)
Richmond Hill: +0.53% (1 Month), +1.97% (3 Month), +4.35% (6 Month), +1.47% (1 Year)
Markham: -3.80% (1 Month), -1.77% (3 Month), +2.60% (6 Month), +2.50% (1 Year)
*How to use these numbers: If on July 1, 2018 the price of a condo in Toronto was $500,000, it would be worth $500,800 on July 31, 2018 based on the home price index (HPI). That $500,000 condo in Toronto appreciated $800 in July or $25.81 per day.
Prepared by Michael De Luca, Real Estate Sales Representative at Private Service Realty (PSR), Brokerage