Low Supply, Big Demand

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Summer Sizzle

August 04, 2011

The sales activity in Toronto real estate suggests it remains a Scorching Hot market, just like Toronto's weather which recently hit 37.9 degress Celsius, with the humidex at the University of Toronto's campus hitting 51 degrees, on July 21st. Wicked!

And while heat waves usually cool off Buyers, who are simply too sticky-hot exhausted to look at houses, this summer has been anything but.

Although we're awaiting the July stats to be released shortly, Greater Toronto Realtors reported 10,230 home sales through the Toronto MLS system in June 2011 – up 21 per cent compared to June 2010. This number represented the third best June result on record behind 2007 and 2009. The average price for June transactions was $476,371 – a 9.5 per cent increase over June 2010. Through the first six months of the year, the average selling price was $467,169 – almost an eight per cent increase compared to the same period in 2010.

Wow!

The demand for property in the City of Toronto continues to outstrip the supply, and it's exacerbated by the fact that fewer Sellers list their homes during the Summer. It's a case of Low Supply and Big Demand.

The situation is almost surreal. While most of the entire globe is in economic distress, Toronto is booming. Is this realistic? For how long can this last?

I'm reflecting on all the factors that contribute to our real estate market in preparation for my Fall Forecast next month. Stay tuned for it.

These are interesting times indeed!

~ Steven

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