Year-over-year resale home prices and sales rose for a second consecutive month in July, signalling that the Toronto area real estate market is in recovery mode.
Average selling prices climbed 4.8% to $782,129 last month, up from $745,971 in the same period last year and the number of homes sold rose 18.6% to 6,961 units, compared to 5,869 homes sold in July, 2017.
Condominiums continued to outperform low rise housing such as detached, semi-detached and townhomes. On average last month condo prices rose 8.9% across the GTA to $546,984. What is interesting to note, however, is that even though roughly 70% of the condos sold last month were in the City of Toronto (416), the rate of price appreciation has been shifting in favor of the suburban markets (905), where prices were up by 10.3% in July, compared to 9.2% for the City of Toronto. This is a dramatic shift from the month of June, when condominium prices in Toronto rose by more than 9% while the suburban markets only posted price appreciation of less than 4%. A condominium in Toronto cost $582,547 on average, compared to $461,255 in the surrounding regions.
Year-over-year prices for detached homes, rose by 0.5% on average in July to $1,004,647, but the scarcity of detached homes listed for sale in Toronto helped boost prices by 3.6% inside the City, while prices remained flat in the surrounding 905 communities where roughly 3/4 of all the detached home sales were recorded. A detached house in Toronto cost $1,350,700 on average, compared to $907,347 in the surrounding regions.
Months of inventory across all home types in the GTA stood at roughly 2.8 months supply in July compared to 2.4 months supply a year earlier, but the numbers look very different when viewed by housing type and location. As seen in the chart below, months of inventory of detached homes are roughly double that of any other housing type, and this is even more pronounced when one compares Toronto to the surrounding regions where inventories across all housing types are generally about one month higher than in the City.
If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out.
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