toronto housing market

Toronto house prices have started to go up again

Toronto’s residential real estate market is finally recovering from its 2017 demise.

Home sales haven’t fully recouped, but recent pricing predictions show a modest increase in sales and signify progress.

Royal LePage predicted a 1.4 per cent overall increase in Toronto home sales this year. The Toronto Real Estate Board has already seen an 8.5 per cent rise in re-sale home transaction this year to date.

In June, TREB reported a 10.4 per cent gain in re-sale home transactions and RBC found home sales were up 0.2 per cent, plus there was a 19 per cent increase in sales over the last three months.

After the industry downfall, new rules were outlined in a mortgage stress test to evaluate whether borrowers with uninsured loans could withstand higher interest rates.

These new stress test rules changed for the first time on Friday, which will allow a home buyer to get approved for a larger mortgage.

The stress test was created to ensure people seeking loans could pay them off, even if the rates reached higher levels, like they did in 2017. 

Before this shift, the bank rate for a loan was 5.34 per cent, but now it is 5.19 per cent.

Despite the fact that the real estate market is recovering, the Ontario Real Estate Association said that the stress test is excluding millennials from partaking in the market.

The association has advocated for first time buyers and wants it eliminated.

Lead photo by

blogTO


Join the conversation Load comments

Latest in Real Estate

Piece of land that is nothing but dirt and grass on sale for $1 million in Toronto

Here's what the controversial new condo coming to the Scarborough Bluffs looks like

There's a log cabin in Ontario on sale for $4 million

This Toronto house is only $500K but it smells so bad you can't go inside

This $14 million mansion in Mississauga looks like something out of a fairy tale

5 new condo developments that might convince you to move to Hamilton

The cost to rent a Toronto apartment is going up again but it's falling in the suburbs

This is what a $20K a month penthouse apartment looks like in Toronto