9,989 home sales were reported through TREB’s MLS in May 2019, jumping almost 19% from May 2018! May sales were the highest on a seasonally adjusted basis since December 2017, up roughly 10% from April which had a 16.8% jump in year-over-year sales. The average selling price for all home types combined was up 3.6% over the same period. Lack of supply continues to be an ongoing concern as year-over-year growth in new listings under 1% was significantly outpaced by sales. Hopefully the Housing Supply Action Plan will improve the situation and increase supply.
Recession risk is low in Canada and Ontario is in a good spot. The CEO of BMO has recently said the risk of a recession this year is “relatively low”. Darryl White points to the data, which shows no signs of a recession thanks to good employment rates, inflation, and consumer credit quality. In addition, he expects the country’s GDP to grow by 1.5% by the end of 2019. White points out that Toronto’s market has been “steadying” and White thinks the market is “a lot healthier than some people think it is.”
Further, condo prices are up 50% in 3 years according to Urbanation. That’s 147,000 condos sold in past 3 years. The average downtown condo price is greater than $1000 per sqft, meaning $100,000+ income is required to buy an average unit… There are 123,000 new condos in development, with the condo vacancy rate only 0.7%! In addition, the average condo rent in Toronto is now $2376 per month.
Click below to check out our local market reports for The Kingsway, Sunnylea and Thorncrest Village.