Home sales and prices are back on the rise as shown through the Toronto Real Estate Board’s latest August report.
According to TREB, sales are up 8.5% compared to August 2017.
Meanwhile, the average selling price for a home in the GTA is up to $765,270. In Toronto, that number is slightly higher, and currently sitting at $785,223. TREB says that the average selling price increased due to a change in the mix of sales compared to last year. Detached home sales were up by double digits on a year-over-year percentage basis – substantially more than many other less-expensive home types.
“It is encouraging to see a continued resurgence in the demand for ownership housing,” said TREB President Garry Bhaura.
Bhaura added that home buyers who had initially moved to the sidelines due to the Ontario Fair Housing Plan and new mortgage lending guidelines have renewed their search for a home and are getting deals more than last year.
“In a region where the economy remains strong and the population continues to grow, ownership housing remains a solid long-term investment,” he said.
Month-over-month sales and price growth also continued in August. Last month’s sales were up by 2% compared to July 2018.
“Market conditions in the summer of 2018, including this past August, were tighter than what was experienced in the summer of 2017,” said Jason Mercer, TREB’s Director of Market Analysis.
But, the annual rate of sales growth outpaced the annual rate of new listings growth in August.
“We only have slightly more than two-and-a-half months of inventory in the TREB market area as a whole and less than two months of inventory in the City of Toronto,” Mercer said. “This means that despite the fact the sales remain off the record highs from 2016 and 2017, many GTA neighbourhoods continue to suffer from a lack of inventory. This could present a problem if demand continues to accelerate over the next year, which is expected.”