According to the latest report from the Toronto Real Estate Board, the Greater Toronto Area’s resale market remained tight through August 2019.
There were 7,711 home sales reported through the MLS system in August 2019, which is an increase of 13.4% year-over-year. The majority of the sales were of detached homes with 3,618 transactions, an increase of 21.3% compared to the same period in 2018.
“GTA-wide sales were up on a year-over-year basis for all major market segments, with annual rates of sales growth strongest for low-rise home types including detached houses,” says TREB President, Michael Collins. “This reflects the fact that demand for more expensive home types was very low in 2018 and has rebounded to a certain degree in 2019, albeit not back to the record levels experienced in 2016 and the first quarter of 2017. The OSFI mortgage stress test continues to keep some would-be home buyers on the sidelines.”
With sales growth strong and new listings falling 3%, the resale market remained tight through August. On a year-to-date basis, sales growth has outstripped new listings growth, so active listings in August were 11% lower than a year ago.
“The GTA’s strong economy, cultural diversity and internationally recognized quality of life continues to attract newcomers to the region each year,” says TREB CEO, John DiMichele. “This needs to continue for it to remain competitive on the global stage. However, our housing supply has not kept up with population growth, which has led to pent-up housing demand. The Province of Ontario, City of Toronto and other GTA municipalities have recognized that housing supply is a key issue and are working toward solutions. With the federal election less than two months away, all political parties should be making their housing policy stance clear as well.”
The average selling price in August 2019 was $792,611, which is 3.6% higher than the same month a year ago. Like previous months, condo price growth led the way, increasing 6.1% to $574,632.
“This year’s market through August has been characterized by receding listings and increasing sales relative to 2018. Competition between buyers has increased, which has led to stronger annual rates of price growth, most notably during this past spring and summer,” says Jason Mercer, TREB’s Chief Market Analyst. “Right now, the overall pace of price growth is moderate. However, if demand for ownership housing continues to increase relative to the supply of listings, the annual rate of price growth will accelerate further. This underpins the importance of solving this region’s housing supply issues, which will go a long way to ensuring a sustainable pace of price growth over the long term.”
Detached homes remain the most expensive housing type, but price growth was moderate, jumping just 0.3% to $978,920. In the 416 area, the average price of a detached home increased slightly to $1,246,392.
We’re eager to see how the resale market performs throughout the fall season.