Toronto Realtors reported 3,603 residential sales through the Toronto MLS system during the first 14 days of July. This result represented a moderate increase of 2.2% compared to the same period in 2012. Over the same time frame, the number of new listings entered into Toronto MLS was down by two per cent.

Comment: Like I have been saying for a year now, once we get 2 months with the same mortgage rules to compare, we would see sales volume rise. And it did. Now that we are comparing apples to apples, we will see Q3 and Q4 both have positive sales growth. Add price growth to that and maybe, just maybe, the bubble mongers will have to change their tune. Okay, not likely…

“The second half of 2013 began with tighter market conditions in the GTA housing market. With sales up and new listings down, it makes sense that the annual rate of price growth accelerated. This was especially the case for single-detached and semi-detached homes in the City of Toronto, which remained in very short supply,” said Toronto Real Estate Board President Dianne Usher.

Comment: Again, simple economics. When demand stays steady – or increases – as supply drops, prices rise. Even with a small mortgage rate increase.

The average selling price for the first 14 days of July was $510,819 – up by 8.1% compared to $472,632 in the first half of July 2012. The strongest year-over-year increases were experienced in the single-detached and semi-detached market segments in the City of Toronto with growth rates of 10.7% and 14.1% respectively. The condominium apartment segment continued to experience moderate average price growth.

Comment: Wow… that is just crazy. I expected to see price growth in the 3-5% range, certainly not more than 8%!

“Expect a faster pace of average price growth in the second half of 2013 compared to the first six months of the year. The strong demand and shortage of listings for low-rise home types in some neighbourhoods will continue to be the driver of price growth. An improvement in conditions in the condominium apartment market will also have a positive impact,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

Comment: No kidding – if sales continue to increase, while listings fall, there will only be further pressure on prices. And sales growth will appear exaggerated, as we are used to 6 months of negative growth (however false that growth was). That will spur more and more action, causing 2013 to end in an upward sales and price spike. Yet the doomsayers will continue to preach their gospel of collapse.

Summary of TorontoMLS Sales and Average Price July 1-14 2013

City of Toronto (“416”)
2013 Sales: 1,289 | Avg Price: $527,885 | New Listings: 2,591
2012 Sales: 1,255 | Avg Price: $493,636 | New Listings: 2,804

Rest of GTA (“905”)
2013 Sales: 2,314 | Avg Price: $501,312 | New Listings: 4,124
2012 Sales: 2,271 | Avg Price: $461,025 | New Listings: 4,050

Entire GTA
2013 Sales: 3,603 | Avg Price: $510,819 | New Listings: 6,715
2012 Sales: 3,526 | Avg Price: $472,632 | New Listings: 6,854

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Contact Laurin Jeffrey for more information – 416-388-1960

Laurin Jeffrey is a Toronto Realtor with Century 21 Regal Realty. He did not
write these articles, he just reproduces them here for people who are
interested in Toronto real estate. He does not work for any builders.
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