According to the Toronto Real Estate Board (TREB), there were 12,077 home sales through the TREB’s MLS System in March 2017, an increase of 17.7 per cent compared to the 10,260 sales in March 2016. For the TREB market area as a whole, year-over-year sales growth was strongest in condominium apartments and detached houses.
The number of new listings also increased year-over-year, reaching 17,051, a 15.2 per cent increase compared to March 2016. The detached home market segment experienced the strongest growth in new listings. While new listings were up significantly compared to last year, the rate of new listings growth remained below the rate of sales growth, resulting in GTA market conditions continuing to tighten.
“It has been encouraging to see that policy-makers have not implemented any knee-jerk policies regarding the GTA housing market,” said Larry Cerqua, TREB president, in a press release. “Different levels of government are holding consultations with market stakeholders and TREB has participated and will continue to participate in these discussions. Policy-makers must remember that it is the interplay between the demand for and supply of listings that influences price growth.”
Strong competition between potential buyers continued to cause high levels of price growth across all major market segments. The MLS Home Price Index Composite Benchmark Price increased by 28.6 per cent year-over-year. For the TREB market area as a whole, the average selling price of a home climbed 33.2 per cent, with similar annual rates of growth in the low-rise and condominium apartment segments.
“Annual rates of price growth continued to accelerate in March as growth in sales outstripped growth in listings,” added Jason Mercer, TREB’s director of market analysis. “A substantial period of months in which listings growth is greater than sales growth will be required to bring the GTA housing market back into balance. As policy-makers seek to achieve this balance, it is important that an evidence-based approach is followed.”