Is this right, or is it a Misplot? GTA Real Estate Sales See Biggest July In Over 10 Years!
Greater Toronto is following a current North American wide trend – flight to the suburbs. There’s been a surge of real estate sales, and this is due largely to the detached suburban segment.
Suburban inventory is becoming significantly tighter compared to last year. Greater Toronto real estate is seeing a big jump in sales, and it’s mostly people fleeing to the suburbs. What is about the suburb that continues to push people to buy out of the city? Well to start, what makes GTA’s suburbs superior is the fact that they sit in Canada’s biggest city, which doubles as home to an immense and impressive ethnic and cultural mosaic.
Matrix Mortgage Global understands that families’ need for residence will differ from one to another. For some, nothing but a high-end neighbourhood will do in keeping with their lifestyle. For others, peace and quiet with a decent proximity to the city, schools, and grocery stores are of utmost importance. Our team knows that it is vital to weigh your needs, and those of your family carefully in order to make a proper determination on which suburb would suit you best. It is not a decision that can be rushed, so after reading this article, visit us at https://www.matrixmortgageglobal.ca/ and let us see what we can do for YOU!
So the question now is; will suburban living work for you?
Living in Toronto suburbs means reasonable prices in comparison to residential living in the core of the city. Owning a home in the suburbs means that a family has access to an abundance of quality public and private schools, which make it possible for families to settle with ease. This is why it is not much of a surprise that the big numbers seen in July, were mostly because of the growth due to detached homes in the suburbs.
Toronto Regional Real Estate Board (TRREB) data shows it was the most sales for July in at least a decade. The increase in sales was primarily driven by a surge in the Peel region, where inventory is falling behind demand. The suburbs are seeing much tighter inventory, while the City is seeing inventory starting to loosen up.
In the city, sales are rising, but not as fast as inventory, which is growing at three times the pace. Year-to-date sales are down, so this may be a demand lag from pandemic months. The city on the other hand, is seeing new listings grow at three times the pace of sales. It represented 6,129 of those listings, up 16.41 over the same period. The rally may disappear as demand catches up, but in the meantime there’s still a lot of pressure on prices – especially in the suburbs.
Greater Toronto real estate sales saw a major increase in home sales last month. TRREB reported 11,081 sales in July, up a massive 28.92% from the same month before. The City of Toronto represented 3,577 of the sales, up 15.01% over the same period. Last year was an unusually slow year, so a little growth wouldn’t have been surprising. What wasn’t expected was the abrupt jump that was observed in the Greater Toronto real estate prices.
The rate of growth is larger than the month before, but the increase was so large it bent the trend line. The size of monthly increase doesn’t exist in the benchmark price stats prior to 2015. The movement was so abrupt; it actually looks like a misplot on the trend line.
The price of all homes had a usually large increase during the pandemic. The TRREB benchmark price reached $880,400 in July, up 10.01% from the same month last year. The City of Toronto reached $967,900, up 9.06% over the same period. This isn’t just unusual during a pandemic; it’s an unusual trend for the history of Toronto real estate prices, and the unexpected movements don’t stop there.
TRREB’s median sale price reached $810,000 in July, up 14.89% from a year before. The City of Toronto also hit $810,000, up 14.89% over the same period.
There was a significant jump observed with the average sale price as well. The average sale price across TRREB reached $943,710 in July, up 16.97% from the same month last year. In the city, it reached $1,017,320, up 21.11% from a year ago. This substantial jump is largely due to booming demand for detached homes, which saw sale volumes rise more than four times the rate of condo apartments. Even with this boom, the listings observed in the city are not keeping up with what is happening in the suburbs.
TRREB reported 17,956 new listings in July, up 24.75% compared to the same month last year. The City of Toronto represented 6,930 of those listings, up a massive 45.52% compared to last year. The new listings trend also amplified the total inventory trend, which is seeing more inventory in the city. TRREB reached 15,018 active listings in July, down 16.28% from last year. There’s a lot more pressure on prices in the suburbs than there is in the City, where it is actually seeing pressure released.
There are some decisions to be made, but know that you are not alone in making them.