Cost Of Homes In Toronto Region Rises 23% In November
Latest sales statistics of the Toronto Real Estate Board (TREB) revealed that compared to the same period last year, home prices this November rose 23% or $144,000 more.
From the average cost of $623,774 on the same month last year, purchase of houses in the Toronto area rose to $776,684.
The report also showed a $4,159 increase from October's selling price.
"(Interest) rates are going up (but not substantially) and that will be helpful, but there's just so many positive factors in Toronto," he said. "You look at immigration, you look at inter-provincial migration, you look at the U.S. economy, you look at interest rates, the wealth effect of homes and the stock market - all of those are strongly positive for the home ownership market," said Cam Forbes, general manager of ReMax Realtron Realty.
According to John Pasalis of Realosophy, a Leslieville brokerage, only about 10% of the marker is affected by the mortgage stress test.
He added that there have been speculations that Ottawa could expand the rules on loans for those with 20% or less down on a home.
The lower end of the market in townhouses and condos experienced the strongest price gains in November. It recorded a region-wide average growth of 24% for townhouses and 15% for condos.
An increase of 25.4% year-over-year on the MLS home price index has also been recorded on Durham Region which is considered as one of the most affordable areas for home buyers.
"Even up in Georgina, close to Lake Simcoe, sales are up (25%). That's consistent with a lot of people moving further out of the city just for affordability," said Pasalis.
Forbes of ReMax said that there is only one month of home supply left in the region. TREB President Larry Cerqua urged the government to address the supply issue as the lack of supply is frustrating home buyers.
Jason Mercer, the director of market analysis of TREB, said that recent policy initiatives that seek to address home price growth have focused on demand.
"More emphasis needs to be placed on solutions to alleviate the lack of inventory for all home types," he furthered.