Todor Todorov's blog
Oakville home prices continue to soar.
According to Canadian Real Estate Association (CREA) data for the month of April, the average price of home in Oakville climbed to $1,342,300.
That’s up by 22.37 per cent or $245,400 when compared to sales from last April even though Canadian real estate sales may be slowing down.
A report from Lowestrates.ca with an alarmist headline predicts that housing prices will “correct” sometime this year, but according to a mortgage professional in Vancouver, a fundamental misunderstanding is at play.
The current real estate market is an incredible mix of low listing inventory, combined with record high sales which is putting upward pressure on prices. In December 2020, listings were down -52%, average price for residential properties was up +25.4%, and sales volume up +41% vs. last year.
It’s a good time to be a Seller, and a tough time to be a Buyer right now!!!
The housing market in Toronto has reached new heights too after the global pandemic took its toll on office workers and real estate investors. As stated in a November report by the Toronto Regional Real Estate Board (TRREB), home sales in the GTA were up more than they ever have been for four consecutive months. In October alone, TRREB members reported 10,563 home sales compared to 8,445 in October 2019. The average price for all types of homes combined reached $968,318, an increase of 13.7 per cent from the same time last year.
As the COVID-19 pandemic continues, it has begun to impact the real estate market in a negative way, or at least one part of it — condos in downtown Toronto. The downward trend in this sector of the market has led some to sell their condos in a hurry — and in some cases before the building has even been built.
It was a red-hot summer for the Toronto real estate market. It might not makes sense on the surface, considering that Canada’s largest city and the rest of the country are still muddling through a pandemic and a recession. However, once you start digging into the trends, you see that pent-up demand, historically low interest rates, and low supply are contributing to the surge in sales activity and home prices since the height of the virus outbreak.
Tighter condo market conditions were reported over the past year, with new condo listings diving by 11.9 per cent at the end 2019, compared to Q4 2018, says the Toronto Real Estate Board (TREB)
As for sales, GTA realtors accounted for 5,367 condo sales, up 3.8 per cent.
“Condominium apartments provide a relatively affordable entry point into the home ownership market for first-time buyers, who account for a substantial portion of demand each year,” noted Toronto Real Estate Board President Michael Collins.
The Firm Capital report cited RBC Economics data that said the Toronto census metropolitan area (CMA) needs 9,100 more vacant units to reach a “healthy” vacancy level of three per cent.
The RBC report also said the Toronto CMA needs 22,000 new rental apartments and rented condominium apartments per year to satisfy demand between 2019 and 2023.
The high cost of housing in the Greater Toronto Area is leaving many residents side-lined with little expectation that much can be done.
A new survey from the Angus Reid Institute finds that both homeowners and non-homeowners believe that real estate in the GTA is “unreasonably high” but there don’t think there’s much the government can do at this late stage.
Comparing a similar survey in 2015, ARI found that things have worsened with a larger share of respondents saying they are “miserable” based on their personal experiences.