Toronto housing market is once again moving away from its previous frenzy to a much calmer condition. Following the introduction of new housing measures taken by the Ontario government, home sales in the Toronto market dropped by 50% in the first few weeks of June while new homes listed in the market rose by 22% according to the Toronto Real Estate Board.
The increase in new listings that was seen in June was more intensified than it was in May and this came to the surprise of many market onlookers given the fact that home sales were on the decline but this decline was not reflected in the condo market as sales were higher.
According to the Toronto-Dominion Bank the increase in condo home prices over single-family homes was last seen in 2010. The single-family property type had always outpaced that of the condo market but things are shifting this time around.
The main reason why there is a change in the Toronto area is the difference in prices. The average home prices for condo properties are more affordable in comparison to single-family homes.
The average price for single-family homes rose by 6.7% to $808,847 in June which is higher than it used to be last year during the same period. The price for semi-detached homes in the 416 area code also rose by 4.3% to $949,546 while there was a 9.9% increase for detached homes to $1,416,908 for the first few weeks in June.
Deferring from this rapid increase in prices, the condo market saw a 23.7% increase in the average home price to $558,691.
Even though there seems to be differences in home prices, the market is however at a balance says Christopher Bibby of Re/Max Hallmark Bibby Group Realty Ltd.
Mr. Bibby went on to add that earlier in the year, the market conditions have resulted to outrageous bidding wars which escalates home prices and the present balanced housing market is very favorable than it was in the previous market frenzy.