The Toronto real estate market just had another surprising month.
The GTA saw nearly 10,000 metaphorical house keys change hands in May, representing a huge increase (19%) from May 2018 and a 10% increase from the month prior. This sounds promising, but it’s worth noting that these activity levels are still about 3000 homes shy of the 10-year average for May.
In terms of price, the GTA witnessed an average price hike of 3.8% compared to the same time last year. It would seem this was largely driven by the 9% and 8% gains seen by The City of Toronto and Toronto Central* respectively. The latter’s condo market performed particularly well, boasting an average sale price of $828,620 (+15.6% compared to May 2018).
What does this mean?
If you’re a renter looking to buy your first condo, this might not be the best time. That said, rental rates are rising. As of April, TREB reported year-to-date rents for one-bedrooms were up to $2,150, an annual increase of 7.3%. If you can afford the down-payment, owning is the more affordable on-going option. If you’re curious about the mortgage you could qualify for, I’m happy to introduce you to the advisors with whom I work. They’re amongst the best in Toronto.
If you’re already in the Central Toronto market and looking to move up from a condo, now is a great opportunity. While condo prices were up, both semi-detached and detached houses were down by 2.2% and 4.5% respectively. This means a shrinking gap between your starter apartment and your first home.
If you’re buying and selling – regardless of the home type or location – you’re wise to sell first. Why? The market has been unpredictable and by selling first, you’ll know exactly how much time you have to find your next home, and what the sale of your home will bring. There’s not a lot of rhyme or reason to this market, and buying ahead of selling, could get stressful. Of course, there are exceptions to every rule. If you have questions about the best way to buy or sell your home, I’m a phone call or email away.
