Condo Chicks from Stomp Realty Inc. (www.CondoChicks.com), a team of realtors behind some of Toronto’s most prestigious condominium sales, is commenting on newly released Toronto real estate figures for the month of May. —
The price of a house in Toronto in May rose by 15.7% compared to the same period last year, according to new figures released from the Toronto Real Estate Board (TERB). As well, compared to last May, home sales have increased by 10.6 percent in Toronto. (Source: Kalinowski, T., “Toronto house prices up 15.7% in May,” The Toronto Star website, June 3, 2016; https://www.thestar.com/business/2016/06/03/toronto-house-prices-up-157-in-may.html.)
“Home sales and prices are both up in Toronto,” says Erica Smith founder of Condo Chicks. “These figures are more proof that Toronto’s real estate market is booming right now. When both sales and prices are rising by this much, it’s a sign that there’s a lot of demand for homes in the city.”
The sharp rise in prices is being blamed on a shortage of listings. Demand is outstripping the number of properties available on the market, which is resulting in the rising sales and house prices.
“Toronto is a premier real estate destination, which is why we’re seeing this upward trend,” says Smith. “The city is growing, with a lot of new residents, and there’s also foreign investment. There’s more demand for homes than there are actual homes available, so the market is becoming increasingly competitive.”
The average price of a Toronto house in May was $782,051, an increase of over $60,000 from the same period last year. While house prices are rising, some real estate experts have noted that the rising prices are being fueled by homeowners looking for safe investments.
“Some people may understandably have a negative reaction towards rising prices, but that can actually be a good sign,” notes Smith. “Toronto property can be a really good investment, and the market is only expected to continue growing in the years ahead. Of course, it’s important that buyers are in the right position to invest in a home.”
Due to rising prices, numerous groups have called on the government to take action. The Organization for Economic Co-operation and Development (OECD) has called on the federal government to restrict mortgage lending, while Scotiabank wants to see a higher minimum down payment. However, one TERB member has said these will have little effect, as most homeowners are making prudent financial decisions.
“This can be a great time to buy a home, but buyers need to be making sure they are in the right financial position,” says Smith. “One of the best ways to ensure you’re making the right choice is to speak with a real estate professional or broker. They can help guide you through the process and make sure that you are protected from bad investments.”
Condo Chicks from Stomp Realty Inc. is a dedicated team of realtors who are behind some of the most prestigious and prominent condominium sales in the Greater Toronto Area. For more information, please call (416)-366-3030 or email firstname.lastname@example.org.
Name: Erica Mary Smith, Broker of Record and Co-Founder of Stomp Realty Inc., Brokerage
Email: Send Email
Organization: Condo Chicks Inc.
Address: 163 Sterling Rd #10 Toronto, Ontario M6K 2B2
Release ID: 118981