The Toronto Real Estate Board (TREB) announced that there were 6,357 home sales completed in the GTA in August 2017, a drop of 34.8 per cent year-over-year. Sales across all home types fell during the month of August.
There were 11,523 new listings entered into the TREB’s MLS System, a decline of 6.7 per cent compared to August 2016, which is the lowest this figure has been for August since 2010.
“Recent reports suggest that economic conditions remain strong in the GTA,” said Tim Syrianos, TREB president, in a press release. “Positive economic news coupled with the slower pace of price growth we are now experiencing could prompt an improvement in the demand for ownership housing, over and above the regular seasonal bump, as we move through the fall.”
The average selling price for all home types combined was $732,292, an increase of three per cent compared to August 2016. This growth was mostly driven by the condominium (21.4 per cent), townhouse (8.9 per cent) and semi-detached (12.1 per cent) market segments, which continued to experience high single-digit or double-digit year-over-year average price growth.
The MLS Home Price Index composite benchmark, which accounts for typical home types throughout the GTA, was up by 14.3 per cent year-over-year in August. However, since MLS HPI growth surpassed average price growth, this indicates fewer high-end home sales were completed this year, compared to last year.
“The relationship between sales and listings in the marketplace today suggests a balanced market,” added Jason Mercer, TREB’s director of market analysis. “If current conditions are sustained over the coming months, we would expect to see year-over-year price growth normalize slightly above the rate of inflation. However, if some buyers move from the sidelines back into the marketplace, as TREB consumer research suggests may happen, an acceleration in price growth could result if listings remain at current levels.”