Wednesday, September 7, 2016

Toronto home sales up 23.5 per cent in August, realtors vow to study foreign investors

Toronto realtors say an extra two working days in August created a major boost for sales of existing homes in the month even in the face of a continued shortage of listings.

The Toronto Real Estate Board said Wednesday there were 9,813 sales through the Multiple Listing Service last month, a 23.5 per cent increase from a year ago. The majority of sales were on working days and without the two extra ones August, 2016, sales would have risen about 13 per cent from a year ago.

With the focus in Vancouver on foreign investors and their impact on their market, Toronto realtors say they will study the issue on their own in the coming months. Last month, the British Columbia began taxing foreign investors an extra 15 per cent on property taxes and some have linked that move to a major decline in August sales in the province’s largest city.

“TREB will also be releasing new third-party research, and consumer and realtor survey results throughout the fall and winter, with discussions focusing on foreign buying activity and issues affecting the supply of ownership housing,” said Jason Mercer, director of market analysis, with the board, in a statement.

Toronto’s 905 region is now clearly outpacing the 416 area in every housing category. The average detached home sold for $905,610 last month in the suburbs, a 23.3 per cent increase from a year ago. Semi-detached homes were up 20.6 per cent and townhouses 18.4 per cent compared to the same period a year ago, in the 905 area.

“The conditions underlying strong demand for ownership housing remained in place, including a relatively strong regional economy, growth in average earnings and low borrowing costs. Unfortunately, we did not see any relief on the listings front, with the number of new listings down compared to last year. This situation continued to underpin very strong home price growth, irrespective of home type or area,” said Larry Cerqua, president of the board, in a release.

TREB said its home price composite benchmark for all housing in August was up 17.2 per cent on a year-over-year basis. The average sale price for all home types rose 17.7 per cent to $710,410.

In the city of Toronto, the average detached home sold for $1,206,637 last month, an 18.3 per cent increase from a year ago. The average semi-detached home sold for $774,700, a 16.4 per cent increase during the same period. Condominiums rose 9.8 per cent from a year ago as the average reached $446,612.

The board said housing sales are clearly on their way to another record showing.

“Population in the GTA continues to grow. The resulting growth in households coupled with favourable economic conditions and low borrowing costs means that we remain on track for another record year for home sales,” said TREB’s Mercer.

gmarr@nationalpost.com
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