As we enter the fourth quarter of 2015, the Toronto real estate market continues its seemingly unstoppable pace. 8,200 house or condominium trades took place in September, making it the highest sales-volume-September on record. The Toronto Real Estate Board has predicted that a total of 100,000 sales to take place in 2015. If that number is achieved, it too will be a record.
We still do not have a balanced market. Sellers are few and Buyers are many. The City of Toronto has only 2.2 months of inventory currently listed. This supply represents about half the number of listings needed for a balanced market, and is down 7.3% from last year. Buyers still find themselves in competition for the homes they want.
The average sale price for any dwelling in the Greater Toronto Area is $627,395, up 9% from September 2014. Benchmark prices - the sale price of a home deemed most typical of its area - are also up in several key neighbourhoods. For detached houses in the Toronto Real Estate Board's districts of Lawrence Park and Forest Hill North, September's benchmark price was over $1.3 million. That represents an 11% gain year over year. Benchmark prices in the districts of North Toronto and Forest Hill South rose 7% to over $1.2 million. The districts of Casa Loma, Deer Park and The Annex gained slightly at 2% with a benchmark of close to $1.4 million. The district of Rosedale and Moore Park had a benchmark price of nearly $1.7 million - another 2% gain.
Every year, Toronto gains approximately 100,000 citizens, many of whom have chosen to make this city their home. Other new households are created by divorce, by young adults starting out on their own, or by couples becoming families. There is constant pressure for the city to create new places to live. However, Toronto's size is limited by the Greenbelt and the lake. The demand for quality homes is greater than the supply.
As long as the demand for houses or condominiums is greater than supply, prices will be strong. As long as interest rates remain low, Buyers will be able to borrow money inexpensively. It is hard to imagine a savings program or financial instrument that will give a better rate of return than real estate. A house or condominium in Toronto remains one of the best financial ventures one can make - and you get to live in your investment.
