The Toronto Real Estate Board released its resale housing market figures for August 2018, reporting an increase in average selling price and sales.
In August 2018, there were 6,839 home sales reported through the MLS system, which is 8.5% higher than last year and a 2% jump compared to July 2018. The largest year-over-year increase in sales was of detached homes, of which there were 3,001, a 17.7% increase.
“It is encouraging to see a continued resurgence in the demand for ownership housing,” says TREB president, Garry Bhaura. “Many homebuyers 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 done much more so 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.”
The average selling price increased 4.7% to $765,270. Detached homes remained the most expensive housing type with an average selling price of $977,187, which is 1.2% higher than the same period last year. The largest year-over-year price jump was in the condo market, where the average was $541,106, a 6.4% increase.
“Market conditions in the summer of 2018, including this past August, were tighter than what was experienced in the summer of 2017,” says Jason Mercer, TREB’s Director of Market Analysis. “In August, the annual rate of sales growth outpaced the annual rate of new listings growth. 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. 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.”
In an effort to improve the home supply issue in the GTA, TREB launched a new website: unlockmyhousingoptions.com. With campaigning for municipal elections underway, the website gives you an easy way to connect with your local candidates to encourage them to make increasing housing a supply a pressing issue.
“One of the key issues facing homebuyers and renters in the GTA is inadequate housing supply and choice, and one of the main reasons for this is municipal policy that unnecessarily locks up housing options,” says Bhaura. “Whether it is approval delays, inflexible and outdated zoning rules, or market distorting taxes like Toronto’s Land Transfer Tax, current municipal policies are a big part of the reason why there is not enough gentle density housing, like semis, row homes, and multiplexes, in the GTA. This ‘missing middle’ option is critical for a healthy real estate market and we are encouraging homebuyers and renters to let municipal election candidates know their views through our new election campaign website.”