In Toronto’s scorching housing market, sales records have notoriously short lifespans as new milestones are reached almost consecutively month-to-month.
July was no exception with 9,989 homes changing hands (an all-time high for the month) while prices jumped to $709,825, up 16.6 per cent from the same time last year.
Despite fervent activity and monumental price gains however, the real estate board isn’t very enthusiastic about the underlying reason propelling prices skywards – a dire lack of supply.
“Policy makers need to be focusing on solutions to the sustained lack of low-rise inventory throughout the GTA,” said Larry Cerqua, president of the Toronto Real Estate Board (TREB)..
Buyers in July had 31.9 per cent fewer homes to choose from compared to twelve months ago, a substantial dip that has driven competition for properties on the market to feverish levels, particularly for single-family houses.
Double-digit price jumps have become the norm with family homes in some cities selling in an average of just nine days.
Detached residences across the GTA collectively saw values up 18.5 per cent, with price growth in the suburbs outpacing the City of Toronto.
“GTA REALTORS® have been working very hard on behalf of their buyer clients to help them find a home meeting their needs,” said Mr. Cerqua in a statement. “Unfortunately, listings for single-detached and semi-detached houses and townhouses continue to be in short supply.”
The number of detached homes that sold over asking effectively doubled from 1,241 in July 2015 to 2,281 last month.
The condo market, which isn’t plagued by the same dearth of supply as family homes, saw prices climb by 8.2 per cent in Toronto. Surprisingly however, condos outside the city experienced an even more substantial 13.7 per cent spike, a sign suburbanites are driving demand for high rises as they’re increasingly being priced out of family homes.