Real Estate

Toronto posts highest monthly average ever at $930,869

  • Last Updated:
  • Jul 15th, 2020 6:57 pm
85 replies
Deal Fanatic
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Sep 8, 2007
9248 posts
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Way Out of GTA
Can’t wait to hear how a) it’s about property mix so actually way down b) this is proof housing is set to fall 50% sometime in the next 25 years (why put a date on things to be called out on) c) Ron Buttlers “I should be out brokering mortgages but instead spend time on internet telling everyone not to buy” expert analysis of the situation.
Deal Addict
Jan 5, 2020
1020 posts
1460 upvotes
I think the most notable stats is that prices for detached and semis in the 416 are up 14.3% and 22%, respectively. In my opinion, when you have the most expensive segment of the market with the highest price appreciation, this is real indication of strength in the market.

I fear that this is another post-2008 real estate boom.
[OP]
Deal Guru
Feb 22, 2011
11939 posts
15409 upvotes
Toronto
Newuserid wrote: I think the most notable stats is that prices for detached and semis in the 416 are up 14.3% and 22%, respectively. In my opinion, when you have the most expensive segment of the market with the highest price appreciation, this is real indication of strength in the market.

I fear that this is another post-2008 real estate boom.
Won't take long for those priced out of semi and detached to start shopping for condos and townhouses because of FOMO.
Deal Expert
Feb 29, 2008
18755 posts
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Tarrana & The Ri…
I’d like to ask the bears who are driving up prices? Airbnb owners? Foreign investors? Immigration? Money laundering? Who is the culprit?
Deal Addict
Jul 3, 2007
4036 posts
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Toronto
JayLove06 wrote: I’d like to ask the bears who are driving up prices? Airbnb owners? Foreign investors? Immigration? Money laundering? Who is the culprit?
for sure mortgage rates , 2% all over the news can hype up people really quick.... even though on most mortgages you are really only saving about $150 - 200 a month
compared to last years 2.89% average rates....

I put an offer in last week and my mortgage is quite unreal, never thought i would get 2% for a rate....

it does help a bit but not a huge difference .....im saving $170 a month compared to last years rates approx....

also inventory on detached is still low ...
Jr. Member
Aug 5, 2018
137 posts
154 upvotes
JayLove06 wrote: I’d like to ask the bears who are driving up prices? Airbnb owners? Foreign investors? Immigration? Money laundering? Who is the culprit?
I thought it was already discussed. The extra $2k monthly income has allowed those that already own upgrade obviously ;)

The reality could be that the WTH stretch has made people reevaluate what they want from a home. Those have acquired significant equity appreciation over the last decade/5 years could now be leveraging the gains. Not to mention low rates.
[OP]
Deal Guru
Feb 22, 2011
11939 posts
15409 upvotes
Toronto
joepipe wrote: for sure mortgage rates , 2% all over the news can hype up people really quick.... even though on most mortgages you are really only saving about $150 - 200 a month
compared to last years 2.89% average rates....

I put an offer in last week and my mortgage is quite unreal, never thought i would get 2% for a rate....

it does help a bit but not a huge difference .....im saving $170 a month compared to last years rates approx....

also inventory on detached is still low ...
The difference between 2% and 2.89% on the average property in Toronto right now is $690 per month, and that's for fixed I am at 1.55% variable so I am saving a fortune.
Deal Addict
Jul 3, 2007
4036 posts
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Toronto
sircheersa wrote: The difference between 2% and 2.89% on the average property in Toronto right now is $690 per month, and that's for fixed I am at 1.55% variable so I am saving a fortune.
im talking for someone buying right now and you need a 500k or 600k mortgage for example....

the savings is not that much.....around $150 a month

and even for existing mortgages, most people have fixed rates, they are not getting any savings unless
they refinance and pay a penalty .....
Jr. Member
Aug 21, 2017
195 posts
132 upvotes
Well, you basically have Apr, May and June (the typical hottest months) buyers all in one single month and less listings due to mortgage deferal and evication bans.

Jul, Aug and Sep will be really interesting as deferals start to end...
Member
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Oct 31, 2019
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Not sure that I trust the "everyone wants a backyard so detached goes up" argument. Condos and towns are on fire too (9% condos gain - not very different from detached). If everyone was trying to ditch condos for more space then there would be a big discrepancy between condos and detached.
Deal Addict
Jul 3, 2007
4036 posts
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Toronto
is this true? high end market pushed up the average?

Member
User avatar
Oct 31, 2019
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joepipe wrote: is this true? high end market pushed up the average?

Condos and towns up 9% too......so probably not
Deal Addict
Mar 2, 2017
3130 posts
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Toronto/Markham
Not sure what to make of the stats just yet, no surprise based on what I am seeing on the ground. There is a lot of FOMO going on at the moment for detached homes almost everywhere. June's behaviour is unsustainable, but it reminds me of a few years ago when the bidding wars at Leslieville started going through the roof and as time went on people got more and more aggressive. I can't see that level FOMO happening on a wide scale throughout GTA for a prolonged period, but it's very difficult to understand how people rationalize buying right now or trying to compete with other irrational buyers.
Realtor®
Member
Nov 5, 2017
299 posts
297 upvotes
Well one thing is clear, there is no credit crunch, mortgages getting approved even after record defferal, HELOC is intact and no reductions.

Cry whatever you want as long as you're breathing you will get mortgage in Canada backed by Canada Government. Party continues Grinning Face
[OP]
Deal Guru
Feb 22, 2011
11939 posts
15409 upvotes
Toronto
RichmondCA wrote: Not sure what to make of the stats just yet, no surprise based on what I am seeing on the ground. There is a lot of FOMO going on at the moment for detached homes almost everywhere. June's behaviour is unsustainable, but it reminds me of a few years ago when the bidding wars at Leslieville started going through the roof and as time went on people got more and more aggressive. I can't see that level FOMO happening on a wide scale throughout GTA for a prolonged period, but it's very difficult to understand how people rationalize buying right now or trying to compete with other irrational buyers.
No one can predict the future but I do remember houses went crazy in end of 2016 and start of 2017. They cooled off but remained high and condos spent the next few years catching up.
Deal Expert
Feb 29, 2008
18755 posts
16993 upvotes
Tarrana & The Ri…
sircheersa wrote: The difference between 2% and 2.89% on the average property in Toronto right now is $690 per month, and that's for fixed I am at 1.55% variable so I am saving a fortune.
It's rates. I'm just trying to get the story straight because bears like to talk about foreign investors and immigration being the culprits....but in a pandemic people are still buying. Maybe the the market is driven by other factors.
Deal Fanatic
Dec 20, 2018
6979 posts
6112 upvotes
JayLove06 wrote: I’d like to ask the bears who are driving up prices? Airbnb owners? Foreign investors? Immigration? Money laundering? Who is the culprit?
Trudeau and his CERB of course! /s

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