The Toronto Real Estate Board announced recently that the sales of homes in Greater Toronto Area were at the highest level in August although historically less owners put their homes for sale on this month. They have stated that their members had an over twenty percent increase in sales in comparison with the same month last year. The sales volume in GTA shows lots of upward movement in comparison with August 2015.
One of the main reasons why the home sales have soared in Toronto in the past year is said to be the dwindling inventory. If you are seeking to buy a single home, a semi-home or a townhouse, you will not be able to find many homes that will meet your requirements. Every time this type of situation arises, there is a strong pressure and influence on the prices of homes.
The average selling price for homes, regardless of their type, was just above seven hundred thousand dollars, which is a seventeen percent increase from last year. The cost of detached homes in Toronto was around one million dollars on average, and that is eighteen percent more than last year. This data comes in times when there are some concerns over the latest fifteen percent tax in Vancouver for foreigners looking to buy homes, which is believed that will send the investors to look for homes in Toronto. That will additionally raise the prices on already pricey homes. However, the experts suggest that it is still early to tell whether this imposed taxes in Vancouver, which got introduced in the beginning of August, will have any kind of impact on the real estate market in Toronto. People should not jump to conclusions, as there is still more information that should be processed regarding the foreign ownership. At least four months of sales data and figures about the rate of foreign home ownership is needed before the real impact of this new tax can be properly analyzed.
Toronto Mayor recently said that people should wait and see whether this type of measures can be taken in Toronto like they were implemented in Vancouver. If the affordability of homes in Toronto is increased, both Mayor and the local government can gain some political points. This is a sensitive question and every measure that is considered should have a positive and real impact on the city and it should not be only about politics or business. The housing marketplace is a complex area where measures cannot be implemented quickly and overnight.
In the city of Vancouver, the property sales have dropped nearly thirty percent in the month of August in comparison with the sales in August of last year. The interesting fact is that prices were constantly rising. The highlight price for any kind of residential property in Vancouver has climbed up to over thirty percent from one year ago, with an average selling price above nine hundred thousand dollars. This trend is expected to continue in the next year as well, and the prices of properties will further grow in 2017.