Compared to last June, Toronto buyers this year are more eager and active, bringing both sales and average prices up significantly. Though the average price was down slightly from May, at $1,182,120 it increased by 3.1% from June 2022. Home sales reached 7,481 last month, a year-over-year increase of 16.5%, and suggested that demand for housing is still strong.
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“A resilient economy, tight labour market and record population growth kept home sales well above last year’s lows. Looking forward, the Bank of Canada’s interest rate decision this month and its guidance on inflation and borrowing costs for the remainder of 2023 will help us understand how much sales and price will recover beyond current levels,” said TRREB Chief Market Analyst Jason Mercer.
Inventory Drops Hindering Further Sales Growth
Months of inventory, which was already low at 2.2 months in May, fell to a new low in June at 2.1 months. However in June of last year inventory sunk to 1.1 months, so though lack of supply is still a major concern, conditions have improved from the summer of 2022.
“GTA municipalities continue to lag in bringing new housing online at a pace sufficient to make up for the current deficit and keep up with record population growth. Leaders at all levels of government, including the new mayor-elect of Toronto, have committed to rectifying the housing supply crisis. We need to see these commitments coming to fruition immediately, or we will continue to fall further behind each month,” said TRREB CEO John DiMichele
Demand for Semi-Detached Homes Increasing
Out of all property types, semi-detached was the only one to show a month-over-month increase in average price, increasing by 1.4% to $1,214,872. Detached, townhouse, and condo apartment properties all experienced a month-over-month decrease in average price, with condo townhouses dropping the most at 1.9% to $851,497.
Looking at the year-over-year numbers paints a slightly different picture; the average price for a semi-detached property, detached property, and condo townhouse all jumped up significantly at 8%, 5.2%, and 3.2% respectively. Condo apartments were the only property type to see a year-over-year decrease.
In the City of Toronto, buyer demand shifted from detached properties to the more affordable semi-detached property type, as semi-detached was the only property type to experience a month-over-month sales increase. Semi-detached sales in the 416 reached 298 in June, up 4.2%, while all other property types experienced sales decreases of more than 11%. However, across all property types sales were up annually in the City of Toronto, with condo apartments and semi-detached properties leading the way with 23.4% and 21.6% increases respectively.
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