Home sales in Toronto were up in October despite the number of new listings being down, which pushed prices higher showing the city’s real estate market is “tightening.”
According to the Toronto Real Estate Board (TREB), 7,492 homes were sold in the Greater Toronto Area (GTA) last month, a 6% increase from October last year.
The average sale price for October was up 3.5% year-over-year to $807,349, according to TREB.
Additionally, the MLS Home Price Index composite benchmark price was up 2.6% year-over-year.
According to TREB, new listings totalled 14,431 in the GTA last month, down 2.7% compared to October 2017.
The fact that sales were up and new listings were down compared to October of last year, suggests that market conditions became tighter.
TREB President Garry Bhaura says annual sales growth in the GTA has been positive since the late spring.
“While the OSFI stress test and higher borrowing costs have kept sales below 2016’s record pace, many households in the Greater Toronto Area remain upbeat on homeownership as a quality long-term investment,” said Bhaura.
“A strong regional economy and steady population growth will continue to support the demand for housing ownership as we move into 2019.”
On a monthly basis, after preliminary seasonal adjustment, sales edged up by 1% in October compared to this past September, while the average selling price, after preliminary seasonal adjustment, also edged up 1%month-over-month.
“Annual sales growth has outstripped annual growth in new listings for the last five months, underpinning the fact that listings supply remains an issue in the Greater Toronto Area,” said Jason Mercer, TREB’s Director of Market Analysis.
And now that the municipal election is over, Mercer says all levels of government need to concentrate on policies that could remove impediments to a better-supplied housing market.
Mercer says this includes “facilitating the development of a broader array of medium density housing choices.”
- Renting and owning property has gotten more expensive in Canada than the US (INFOGRAPHIC)
- Condo prices in these Toronto neighbourhoods increased more than houses (MAP)
- Condo flipping is not a major factor in Toronto's housing market: report