2019 JUNE TORONTO REAL ESTATE MARKET UPDATEBy CondoWongFriday July 12, 2019
The Toronto Real Estate Board just released the June 2019 Market Watch report.
As we’re moving forward to the 2nd half of 2019, I think it’s a perfect time for me to give you a market update on how we did so far this year.
I’m not going to bore you with a whole bunch of data over the entire GTA.
So we’re going to zoom in and focus on the City of Toronto. I’m going to give you 3 key takeaway points based on my interpretation of the report. Are you ready?
The 2019 market is...expensive. So you might expect people to step aside, just wait and see what happens.
In the 1st half of 2018, there were 15,403 resale transactions in the City of Toronto.
In the 2nd half of 2018, there were 14,460 transactions.
What about the 1st half of 2019? We actually had 15,948 transactions.
The #1 key takeaway point:
The 2019 market is actually more active than last year, with sales activity up 3.5%.
What about the price?
Were there more activities because prices were lower?
Let’s check it out.
These were the average prices in the City of Toronto in January this year and last year.
Jan 2018: $$766,616
Jan 2019: $777,674
% Change: +1.44%
In February, the prices climbed above the $800,000 mark. In 2019, we saw a 4.18% increase compared to the same month in 2018.
Feb 2018: $806,494
Feb 2019: $840,211
% Change: +4.18%
March. Similar to February.
Mar 2018: $817,642
Mar 2019: $830,043
% Change: 1.52%
April is quite shocking. We broke the $900,000 mark on the average price, 4.41% increase compared to April last year.
Apr 2018: $865,817
Apr 2019: $903,992
% Change: 4.41%
In May, prices continued to move up and that’s a big 7.85% increase compared to May last year.
May 2018: $869,555
Mar 2019: $937,804
% Change: 7.85%
In June, the average price came down a little bit but still a 5.16% increase compared to June last year.
Jun 2018: $870,559
Jun 2019: $915,481
% Change: 5.16%
Notice that prices seemed to drop in January, that’s just because we were deep in the winter, so there were much fewer transactions.
At the beginning of 2019, we thought that prices were already very high, so these results may come as a surprise to you.
The #2 key takeaway point:
Prices continue to grow in 2019, with an average price over $900,000.
What about rent?
Last year, we saw double-digit increase in rent. Urbanation predicted that Toronto rent increase would slow down in 2019 as more units become available.
The increase did slow down, but in the City of Toronto, rents are still growing well above the rate of inflation.
A 1-bedroom unit rents for $2,192 per month, a 6.7% increase from last year.
A 2-bedroom unit rents for $2,873 per month, a 4.3% increase from last year.
What does it mean when the rent increase is well above inflation?
The #3 key takeaway point:
We need even more housing supply in order to keep up with our population growth.
So those are my 3 takeaway points from the 1st half of 2019, more activities, prices up, more supply needed.
On a side note, CMHC will be launching a new First-Time Home Buyer Incentive program in September. The program will offer first time buyers an interest-free, payment-free loan, matching the buyer’s down payment.
So we’re expecting even more activities in the market when the program comes online in September.
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