The Toronto Real Estate Board released its resale housing market results for July 2018, reporting an increase in average price and sales in the Greater Toronto Area.
Last month, there were 6,961 sales reported through the MLS system, an 18.6% year-over-year increase, while new listings dropped 1.8%. The average selling price jumped 4.8% to $782,129.
“Home sales result in substantial spin-off benefits to the economy, so the positive results over the last two months are encouraging,” says TREB President Garry Bhaura. “However, no one will argue that housing supply remains an issue. The new provincial government and candidates for the upcoming municipal elections need to concentrate on policies focused on enhancing the supply of housing and reducing the upfront tax burden represented by land transfer taxes, province-wide and additionally in the City of Toronto.”
The greatest sales growth was seen in the detached home market; there were 3,062 sales, which is a 26.8% year-over-year increase. The average price of a detached home also jumped slightly by 0.5% to $1,004,647.
Townhome sales also increased, coming in 21.9% higher than last year with 1,173. Families who can afford more than a condo but not quite as much space as a detached home tend to settle on this housing type. With the average detached home still more than $1 million, the average townhome costing $633,993 (4% higher than last year) is pretty attractive.
The greatest price growth was seen in the condo market, increasing 8.9% to an average price of $546,984. Condo sales also jumped up by 9.4% finishing the month with 2,062. With this many sales, condos remain the second most in demand housing after detached homes.
“We have certainly experienced an increase in demand for ownership housing so far this summer,” says Jason Mercer, TREB’s Director of Market Analysis. “It appears that some people who initially moved to the sidelines due to the psychological impact of the Fair Housing Plan and changes to mortgage lending guidelines have re-entered the market. Homebuyers in the GTA recognize that ownership housing is a quality long-term investment.”
Typically, spring is busy and summer is a bit slower, but things are reversed this year. The housing market is heating up this summer, showing signs of a strong second half of 2018. We’re interested to see if the same can be said about the new home market. We’ll be sharing July’s new home stats as soon as they’re released by the Building Industry and Land Development Association later this month.