The Greater Toronto Area (GTA) real estate market maintained strong sales, increasing median prices, and fewer new listings in the first half of 2016. The latest market update from the Toronto Real Estate Board (TREB) reports the Home Price Index benchmark rose by 16 per cent year-over-year, continuing its decade-long upward trend.
Further proving the strength of Toronto real estate, 2015 ended with an average residential sale price of $622,120. In the first six months this year, residential transactions averaged $719,785. The majority of the homes sold thus far this year fell into the $400,000-$499,999 segment, followed closely by transactions in the $500,000-$599,999 range. Detached residential properties represent 49% of the homes sold in GTA real estate. Over 1,500 properties were over $2 million, with the majority of those being detached structures.
For the month of June, the TREB release said local realtors completed 12,784 residential property transactions through the Multiple Listing Service (MLS). That number is 7.5 per cent higher than the same month in 2015 despite new listings declining 3.8 per cent.
The low supply and high demand continues driving up the average selling price in all market segments. The reported median purchase price in Toronto for June was $746,546, an increase of 16.8 percent from June 2015. Central Toronto leads the way both in the number of sales and increased median prices. Buyers seeking detached homes can expect to pay more, with an average price of $1,259,486 in the 416 area code.
Homes sold in June closed in just over two weeks. Average days on the market decreased from 19 to 15 year-over-year.
April to June traditionally are the busiest months for reported sales in the GTA. While July may report slightly fewer closed transactions, it’s reasonable to expect another month reporting year-over-year increases in closed transactions and average sale prices.
Barry Cohen knows the competitive Toronto real estate market. For assistance in buying or selling, contact today.