May 2018 Market Update
The Toronto Real Estate Board released market statistics for the month of April this past week.
The average selling price of a home in Toronto was $865,817, down roughly 8% year-over-year.
Month-to-month however, April prices were up 6% from March, and was the 5th month in a row with positive growth.
The moderate, yet steady price growth we're seeing in the market reaffirms reports that the housing market has stabilized since the volatile market in 2017.
Despite the steadying market, housing affordability remains a serious problem in the city. While government policy intervention and rising interest rates have had a dampening effect on price growth, buyers are arguably in a worse-off position then they were 18 months ago.
Mortgage qualification is more difficult since the implementation of the stress-test, and this is compounded by increasing interest rates. The result has a direct affect on purchasing power for buyers. Meanwhile, Toronto homes are still amongst the most expensive in the world, and continuing population growth via migration continues to pump up demand.
With the prospects of home ownership out of reach for many, the rental market is hotter than ever. Average rental prices are up nearly 12% since last year, and 21% since 2016.
I've said this time and time again, but a more adequate supply of livable spaces for modern families is crucial for the positive development of our communities. Thirty to forty thousand new condo units every year, mostly being made up of one-bedroom units, simply is not sufficient to create diverse and complete communities for the 100,000 new residents we receive every year from within Canada, and globally.