June data is in for real estate sales in Toronto, and the reports are looking good. According to the Canadian Real Estate Association, home sales in Toronto rose 17%.
According to the Financial Post, “Transactions climbed 4.1 per cent from May after touching a five-year low, the Canadian Real Estate Association reported Monday from Ottawa. Benchmark prices fell 0.1 per cent on the month and advanced 0.9 per cent from a year earlier.”
Changes to the mortgage rules and interest rates have made 2018 a more difficult year for real estate sales, but this shows potential that the market may be adjusting and even stabilizing.
“The report is ‘in line’ with what policy makers would want to see, which is ‘the market re-calibrating, if you will, and moving gradually higher,'” said Dawn Desjardins, assistant chief economist at Royal Bank of Canada.
Compared to the rest of Canada, Toronto’s increase was the largest of all the markets tracked by CREA, and the biggest for Toronto since 2004.
“The national increase in June home sales suggests activity may indeed be starting to turn the corner,” Gregory Klump, CREA’s chief economist, said in the report. “Looking ahead, home sales activity and price gains will likely be held in check by higher interest rates.”