Toronto’s real estate market has seen a significant spike in sales over the past three months. Resale home sales in the GTA were up 13% in July, 18% in August and 26% in September.
Many of our clients have been asking us what’s driving this increase in sales and more importantly does this increase in sales mean the market is getting overheated – too competitive for home buyers.
The recent rise in sales is likely due to a couple of different factors. Firstly, in July 2012 the federal government changed mortgage rules in Canada reducing the maximum amortization for insured mortgages from 30 years to 25 years. This change made it more expensive to own a home by increasing mortgage payments.
The above chart shows the percentage change in monthly sales (compared to the same month in the previous year) from January 2012 to September 2013.