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Market Watch - August 2019

TORONTO, SEPTEMBER 5, 2019 – Toronto Real Estate Board President Michael Collins announced that Greater Toronto Area REALTORS® reported 7,711 residential sales through TREB’s MLS® System in August 2019. This result represented a 13.4 per cent increase compared to 6,797 sales reported in August 2018. On a month- over-month basis, after preliminary seasonal adjustment, sales were up by 0.8 per cent.

GTA-wide sales were up on a year-over-year basis for all major market segments, with annual rates of sales growth strongest for low-rise home types including detached houses. This reflects the fact that demand for more expensive home types was very low in 2018 and has rebounded to a certain degree in 2019, albeit not back to the record levels experienced in 2016 and the first quarter of 2017.

Market conditions also became tighter in August 2019 compared to a year ago because, while sales were up year-over-year, new listings were down by three per cent over the same time period to 11,789. Year-to-date, growth in sales has well outstripped growth in new listings. This is why overall active listings counted at the end of August were down by more than 11 per cent compared to August 2018.

The MLS® Home Price Index Composite Benchmark for August 2019 was up by 4.9 per cent on a year-over-year basis. The average selling price, at $792,611 in August 2019, was up by 3.6 per cent year-over-year. Both the MLS® HPI benchmark prices and average selling prices were up on an annual basis for major market segments. The condominium apartment segment continued to lead the way in terms of price growth, followed by higher density low-rise home types and finally detached houses.

Why You Should Consider an Apartment

Photo by   Pixabay   from   Pexels

Photo by Pixabay from Pexels

You deserve to live in a home that you love. It needs to have all of the amenities and features that not only provide convenience but offer you comfort and relaxation. While a single-family home can provide all of this for you, plus much more, it isn’t the only housing option you should consider. An apartment or condo are housing options that have many benefits but are often overlooked. Here are several reasons why you should consider renting an apartment. 

1. The Finances

One of the benefits of choosing an apartment is the cost. Over the past several years in the Toronto area, housing prices have increased. This has made it increasingly hard for many individuals, particularly first-time homebuyers, to purchase a home. They do not have the down payment and other expenses saved up to qualify for a home loan. 

When you choose an apartment, this is not a worry. Rent is much less expensive each month than a monthly mortgage payment in the GTA. You also don’t need the money to pay for maintenance and expenses on the home. If money is already tight, you can keep yourself in a much stronger financial situation with an apartment. 

2. The Responsibility

There are many benefits to owning a home. However, with these benefits comes much responsibility. It will require a substantial amount of time, energy, and money to keep your property in tip-top condition. However, this is not the case with an apartment. In most situations, the landlord or a handyman hired by the landlord will handle all of the maintenance and repairs for the apartment.

3. Location

Photo by   Burst   from   Pexels

Photo by Burst from Pexels

No matter what part of the city you choose to live in, you can typically find an apartment available. This is beneficial if you want to live right in the heart of downtown to make commuting and proximity to various amenities much easier. However, keep in mind that when you live closer to downtown or in busy and popular areas of the city, you will find higher monthly rent rates than elsewhere. 

4. Flexibility

When you purchase a home, you will want to reside in the area for several years. If not, you may find that you lose a considerable amount of money when selling your home. It can also be a major hassle to move from one area to the next. However, this is not the case with an apartment. Moving from place to place is as simple as canceling an upcoming lease. You don’t need to go through any complex or overwhelming selling processes. This is particularly ideal if you do not like your apartment or your current location. 

Living in an apartment has many benefits but it may not be the best choice for all individuals. Before you decide whether a single-family home or an apartment is the right choice for you, you will want to weigh the pros and cons of each and look carefully at your own financial situation and housing needs. 

Get in touch to learn more. 

Market Watch - July 2019

TORONTO, August 6, 2019 – Toronto Real Estate Board President Michael Collins announced that Greater Toronto Area REALTORS® reported 8,595 sales through TREB’s MLS® System in July 2019. This result was up by 24.3 per cent compared to July 2018. On a month-over-month basis, sales were up by 5.1 per cent, after preliminary seasonal adjustment.

New listings entered into TREB’s MLS® System in July 2019 were up compared to July 2018, but by a much lesser annual rate than sales, at 3.7 per cent. With annual growth in sales far outstripping annual growth in new listings, market conditions clearly tightened compared to last year. Active listings at the end of July were down by 9.1 per cent year-over-year, further reflecting tightening market conditions.

As market conditions continued to tighten in July, the average selling price increased by 3.2 per cent on a year-over-year basis to $806,755. The MLS® Home Price Index Composite benchmark was up by 4.4 per cent. Higher density home types continued to drive price growth, whereas detached home prices remained down in many communities throughout the GTA.

Broadly speaking, increased competition between buyers for available properties has resulted in relatively strong price growth above the rate of inflation for semi-detached houses, townhouses and condominium apartments. However, the single-detached market segment, which has arguably been impacted most by the OSFI stress test, has experienced a slower pace of price growth, with average detached prices remaining lower than last year’s levels in some parts of the GTA