he sale of 9,061 single family homes in June, brought the year total to 46,058,with a projected year-end of 85,200, right in line with 2012′s 85,500. However, I believe that activity will be stronger in the last 6 months of 2013 and we will surpass 2012 total sales.
Several factors are key, chief among them is demand. Earlier in the year, there were changes made to lending (mortgage) guidelines. The media predicted that this would slow the market down and that this would result in an adjustment of house prices. A large number of homebuyers put their purchase on hold and when it became evident that the market was not severely impacted, jumped back into the market and reactivated their search. I did a quick search of sales over a two day period, and was surprised by the results. 26% of the homes sold above asking price (indicating multiple offers), with 89% of the homes sold above 95% of asking price. This is great proof that demand is high and exceeds listing stock. The average sale price has also increased from $497,143 in December of 2012 to $522,820 as of the end of June , more than 5%!
I believe the above factors, combined with a great economy and continued immigration will continue to make home ownership in Toronto and surrounding areas a great investment.
Though its summer, I am continuing to work and am always available if you or a friend have and real estate question.
Please don’t forget, “I am never too busy for your referrals”, and I truly appreciate your help.
Have a great July!