New stats reveal that Toronto’s red hot real estate market is showing no signs of slowing down. July’s 8,912 total sales is a 26 percent increase over last year. This is the fourth consecutive month to break sales records.
The year to date average selling price for a home is $373,326, a five percent increase over the same period last year.
2007 is on pace to beat the previous annual sales record set in 2005. The first 7 months of 2005 saw a total of 51,985 homes change hands compared to 59,339 this year, a 14 percent increase.
While it’s good for HomeBuyers to keep an eye on what’s going on in the real estate market, figuring out which statistics to focus on isn’t always straightforward.
Most recently, the media has highlighted that areas such as Riverdale, Richmond Hill and South Humber have seen sales volume increases of over 73% when comparing July 2006 to July 2007. But a one month snapshot may not be the best indicator of underlying trends in the market. In the E1 MLS area, largely comprised of Riverdale, 601 homes were sold in the first seven months of 2006 with an average selling price of $379,956. If we look at the same seven-month period for 2007, 663 homes were sold with an average selling price of $399,924. This represents a 10% increase in the number of homes sold and a 5% increase in the average sale price. Put into proper context, these figures are less alarming for HomeBuyers than the 73% increase reported in the media.
John Pasalis is a sales associate with Prudential Properties Plus in Toronto and a founder of Realosophy.
August 6, 2007Market |