McHardy Team April Market Update
Some exciting news that we wanted to share about our real estate team is that we have recently incorporated and formed our own brokerage. We are happy to be staying within the Royal LePage family, with its strong brand and national presence, as an affiliate brokerage and we will be keeping our desks at our current office at 55 St. Clair West. Many thanks to our clients, colleagues, families and friends who have helped make this next step possible!
The average price of a detached home within the city of Toronto remained above $1.5 million in March, leaving many would-be home buyers wondering when the craziness will stop. In an attempt to address this situation, this week Premier Kathleen Wynne will be meeting with regional mayors and chairs to assemble and introduce a comprehensive package of measures to help alleviate affordability concerns in the GTA housing market, with a focus on helping first time buyers, and with the aim of not causing any negative fallout. Even the economists at the big banks, such as CIBC’s Benjamin Tal, until recently bullish on the GTA housing market, are seeing reasons for concern and support the need for measures.
As detached home prices in the GTA climbed 33.4% year-over year, John Tory called for policy makers to ensure that speculators are not driving up the market. Others believe that foreign buyers are contributing to the problem. Even with that said, the simple fact is that the GTA is a high demand area and there isn’t enough low rise inventory to satisfy that demand. As a direct result of the rising prices, many people are opting out of the low-rise sector, and moving into the condo apartment and townhouse sectors, which is in turn driving prices up for these types of homes. More and more bidding wars are occurring in these sectors as well. Case in point: the average price of a condo apartment in the 416 area code rose 32% year-over-year, and 33.2% in the 905 area code.
We will keep you posted on the measures to tame the market as they get introduced. And as always, if you have any questions about the market or real estate in general, please do not hesitate to get in touch!
Source: TREB, Globe & Mail, CTV News.