Toronto Real Estate News Roundup - September 2019

13 September 2019
Robert Greenberg Team

As we move from summer to fall, don’t expect Toronto’s real estate market to cool off anytime soon.

Like I do every month as your trusted Toronto luxury real estate agent, I’ve summarized the most important real estate news in September that buyers and investors should be informed of. 

The Most Expensive Homes Sold in Toronto and the GTA This Summer

It’s been a sizzling summer for the Toronto real estate market, with the Toronto Real Estate Board (TREB) accounting for 7,711 total transactions. Not only were sales hot, but they were extra lucrative. 

Some of Toronto’s most-coveted luxury real estate properties were sold between June 1 – August 31, with the ‘cheapest’ Toronto mansion selling for a cool $4.82 million; the priciest property, located in the esteemed Forest Hill neighbourhood, closed at $13.18 million. 

Check out all the most expensive homes sold in Toronto this summer here.

Canadian Mortgage Rates Among the World’s Highest: Report

We know Canada has become one of the world’s most expensive countries to live in. Sure, we pay some of the highest wireless prices around, but the high cost of living is more likely linked to our higher-than-average mortgage rates. 

A new study from HuffPost Canada found that our mortgage rates are only usurped by the United States and Australia. Fixed rate terms can be as low as 2.39 per cent, but this still surpasses all other European nations; the UK enjoys a rate of 1.65 per cent, while France is even better off at 1.39 per cent. 

Read more about Canada’s rising mortgage rates here

Toronto Real Estate Prices Hit 18-Month High for Growth, Most Sales Since 2016

It’s typically the time of year Toronto real estate slows down, but that’s not the case in 2019. Toronto Real Estate Board (TREB) data suggests the market enjoyed a surge of sales and drop in inventory, resulting in price growth to its highest levels in over a year and the most sales since 2016. 

The composite benchmark, or the ‘typical home’, touched $802,400 in August, a 4.92 per cent gain from last year. In the City of Toronto, that number rose to an even higher $887,800, or a 5.92 per cent spike. Price growth is being carried by an influx of condos, with huge sales jumps in the 905. 

Read more about the TREB report here

Toronto’s Condo Boom Will End, Dragging Economy Down With It: Capital Economics

While it would be foolish to expect Toronto’s record-breaking condo development to last, what we can expect is a change in our economy when the boom dies down. 

According to Urbanation, an all-time high of 71,378 condo units across 242 projects were underway in the GTA. 

But Stephen Brown, senior Canada economist for Capital Economics, says that slowing new home sales will limit future construction projects in the city. 

"As most new home sales are pre-construction condos, the continued weakness means total construction will decline in the coming years as more units are completed than started," he writes in a report this week. "This process means that residential investment in Toronto will fall," he adds.

Learn more about the repercussions on Toronto’s economy  here.