Toronto Real Estate Market Update - June 2018
Monday Jul 09th, 2018Share
Home sales in the GTA were up 2.4% in June 2018 compared to June 2017. However, sales from May 2018 to June 2018 were up 17.6%, which is a better indication of present market activity.
Average selling prices across the GTA and all asset classes were up slightly (+2%) in June 2018 compared to June 2017. However, 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 this Wednesday, July 11. Many economists are anticipating a rate increase, especially in light of positive jobs data in the past week. However, the Bank of Canada continues to take a cautious approach to rate increases and will weigh all factors, including the domestic impacts of trade tensions with the US.
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 June 30, 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: -0.38% (1 Month), +2.04% (3 Month), +3.58% (6 Month), -6.10% (1 Year)
Mississauga: +0.28% (1 Month), +1.19% (3 Month), +1.68% (6 Month), -5.53% (1 Year)
Brampton: +1.31% (1 Month), +2.65% (3 Month), +5.31% (6 Month), -3.62% (1 Year)
Vaughan: -0.73% (1 Month), -0.69% (3 Month), -0.31% (6 Month), -13.46% (1 Year)
Richmond Hill: +0.54% (1 Month), +1.96% (3 Month), +0.41% (6 Month), -18.00% (1 Year)
Markham: +0.07% (1 Month), +0.93% (3 Month), -1.25% (6 Month), -16.09% (1 Year)
Condominium Apartment Home Price Index
Toronto: +0.43% (1 Month), +3.04% (3 Month), +7.91% (6 Month), +9.10% (1 Year)
Mississauga: -0.66% (1 Month), +2.12% (3 Month), +6.63% (6 Month), +5.83% (1 Year)
Brampton: -1.27% (1 Month), -0.96% (3 Month), +2.59% (6 Month), -2.12% (1 Year)
Vaughan: +0.50% (1 Month), +0.18% (3 Month), +3.48% (6 Month), +6.38% (1 Year)
Richmond Hill: +1.12% (1 Month), +0.22% (3 Month), +5.10% (6 Month), -0.74% (1 Year)
Markham: +2.74% (1 Month), +0.95% (3 Month), +7.13% (6 Month), +0.33% (1 Year)
*How to use these numbers: If on June 1, 2018 the price of a condo in Toronto was $500,000, it would be worth $502,150 on June 30, 2018 based on the home price index (HPI). That $500,000 condo in Toronto appreciated $2,150 in June or $71.67 per day.
Prepared by Michael De Luca, Real Estate Sales Representative at Private Service Realty (PSR), Brokerage