Home sales in Canada’s largest city rose 14% last month, with 8,491 sales reported, compared to just 7,448 sales in October of last year, according to a new report from the Toronto Real Estate Board (TREB).
According to TREB President, Michael Collins, GTA home sales have had significant gains thanks to the economy and population growth.
“A strong regional economy obviously fuels population growth. All of these new households need a place to live and many have the goal of purchasing a home,” said Collins.
However, he added that the supply of available listings is still dropping, resulting in tighter market conditions and accelerating price growth.
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The strong demand and economy in Toronto continued to push home prices higher in October, with the composite benchmark price rising 5.8% for the strongest annual growth rate since December 2017, while the average selling price in the GTA was up 5.5% to $852,142, compared to $807,538 in October 2018.
Here in Toronto, the average price for a home reached $925,498, compared to $869,867 at this same time last year.
The trend of annual growth in sales compared to the annual decline in new listings continued this October, with new listings down by 9.6% compared to October 2018.
The resulting tighter market conditions compared to a year ago resulted in positive annual rates of price growth across all major market segments, from a GTA-wide perspective, according to the latest TREB report.
“As market conditions in the GTA have steadily tightened throughout 2019, we have seen an acceleration in the annual rate of price growth,” said Jason Mercer, TREB’s chief market analyst.
“While the current pace of price growth remains moderate, we will likely see stronger price growth moving forward if sales growth continues to outpace listings growth, leading to more competition between home buyers.”
The price of a detached home in the Toronto area rose 3% in October to an average of $1.04 million.
However, in the city of Toronto, a detached house sold for an average of $1.32 million compared to $952,574 in the 905 areas outside the city.
As for condos, prices jumped 9.6% higher than the same month last year in the Toronto area with an average sale price of $617,419. In the 905 municipalities, condo prices rose 10% year-over-year to an average of $506,846.