Wednesday, August 13, 2014

July Market Watch

July’s resale numbers are in, and it looks like the summer market has no intention of cooling off.  With the majority of the summer season already behind us, this would traditionally mark the beginning of a temporary slow-down, until things ramp up again in the fall.  But with conditions in the GTA’s marketplace remaining favourable in terms of lending conditions and housing demand, this may be a different kind of year.

“The second half of 2014 started where the first half left off, with very strong demand for the diversity of affordable home ownership options in the Greater Toronto Area.  Sales were up strongly for most major home types and market conditions actually tightened, with sales growth outpacing listings growth.  The result was average price growth well-above the rate of inflation,” said TREB President Paul Etherington.

The average selling price for July 2014 sales was $550,700 – up by 7.5 per cent compared to July 2013.  The strongest rate of price growth was reported for the detached market segment in the City of Toronto, with a year-over-year change of 11 per cent. 

“Strong demand for ownership housing will underpin robust average price increases for the remainder of 2014.  In fact, the pace of price growth that we have experienced over the past year will continue until growth in listings outpaces growth in sales for a sustained period of time,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.