In a city where tiny semi-detached homes that require a full gut are for sale for $1 million, apartments with just two bedrooms can be had for $3.5 million and you have to go well over $220,000 -Earn dollars a year to be able to afford an apartment of your own. It’s understandable why anyone would lose interest in even looking at what’s on offer in Toronto’s housing market.
But for those still hoping to snag a home in the 6ix, the last month has at least shown some improvements which, while by no means have made things affordable, are at least cheaper than the usual trend that prices and market activity are taking constantly to.
Entry-level homes are few and far between in Canada, but you can still buy one here: https://t.co/SriLdktWkk #Canada #RealEstate
— blogTO (@blogTO) July 4, 2023
New statistics from real estate site Strata.ca show that the summer has triggered a lull in the region’s resale housing market and the volume of home purchases has declined significantly.
Condo sales fell a whopping 27 percent across the GTA from May through June, while home sales fell 20 percent over the same period. It’s worth noting that this also comes at a time when these numbers were already shockingly low compared to the heyday early last year.
Condo prices were also down $7 per square foot month-on-month ($840 per square foot on average), while home prices remained elevated at an average of $1,385,000.
“With many buyers flocking to the cottage in droves, you should capitalize on this churn by keeping up with your search. Traditionally, competition is less fierce until Labor Day, when everyone returns to town,” Strata.ca sales rep Janelle Tremblett wrote to prospective homeowners in her newsletter on Tuesday.
She adds that we’re still in what’s known as a seller’s market, with plenty of offers coming in for properties in high-demand areas (e.g., downtown Toronto). Low inventories have been an important factor as people shy away from the market, its high prices and exorbitant interest rates; Something that is likely to continue as another possible hike in lending rates looms next week.
Why buy in GTA? Is a jungle. I will never go back to the city, ever! pic.twitter.com/VJ8fR15dLy
— Joanna (@joanna92874072) June 21, 2023
However, the reverse is true for renters, who when looking for accommodation should try to secure one before students get back in time for classes in September.
Renter prices remain ridiculous: The median price of a GTA rental listed on Strata.ca rose 9 percent last month compared to June 2022, reaching $2,880, with most units selling in the market within two weeks .
Wealthy investors certainly won’t be the only ones leaving town if the cost of living continues to rise at this rate – but for the rest of us it will be forever.