Greater Toronto REALTORS® reported 10,230 home sales through the TorontoMLS® system in June 2011 – up 21 per cent compared to June 2010. This number represented the third best June result on record behind 2007 and 2009. The number of transactions during the first six months of 2011 amounted to 48,189 – down by 4.5 per cent compared to the first half of 2010.
“The strong June result capped off an interesting first half of 2011,” said Toronto Real Estate Board President Richard Silver. “The pace of sales was a bit sluggish at the beginning of the year, but rebounded in May and June. Because of the positive affordability picture, home buyers remained confident in their ability to purchase and pay for a home over the long term.”
The average price for June transactions was $476,371 – a 9.5 per cent increase over June 2010. Through the first six months of the year, the average selling price was $467,169 – almost an eight per cent increase compared to the same period in 2010.
“While sales have been strong, we would be on track for a record number of transactions in 2011 if not for the decline in listings so far this year,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis. “Tight supply meant more competition between home buyers and an accelerating annual rate of price growth in the second quarter.”
In Midst of this REAL TREND, some economists predicted housing bubble keeping Vancouver real estate market in mind, where the average sale price have reached approx. $850,000 compared to Toronto average sale price, which is approx. $485,000. As per above numbers, there is a big difference between these two markets, so a general prediction can only be considered a general story. Real Fact is that, GTA market have still got lots of room for growth compared to Vancouver market, there is a huge difference between supply and demand currently, as is proven by above numbers, which is constantly creating upwards pressure on the price. Can’t see that trend changing any soon.
Let us all face some real facts:
1. Due to high unemployment rates, gas prices and other common living expenses, which all are currently high, we can’t be expecting Bank of Canada to go on increasing their overnight lending rates to control the market. The reasons for not to increase are more then reasons to increase. Please review last 3 sessions…..they have not increased even 0.25%. That doesn’t means it will never increase, but based on above conditions, can’t forsee any drastic changes in the near future.
2. Government is continuously putting other measures rather then increasing the rates, to control over heating of housing market i.e. High ratio mortgages now get maximum 30 years amortization as compared to 40 years amortization. Plus lending criteria’s are far more stringent for refinancing and qualifications of Mortgage.
3. Real Estate Purchase…..Sooner is better then later…..always!!! Don’t please try to time your purchase or wait for Canadian market to become like US market. You will only end up loosing more. More you wait….more you loose is name of the game. Your List of Compromises will only increase and not decrease with this delay. So, reacting fast is only solution to this issue.
If you have any questions, I am just a phone call away. Call me directly @ 416-738-7331. I am always happy to answer your questions.