According to the Toronto Real Estate Board (TREB), there were a total of 6,455 home sales in September 2018, an increase of 1.9 per cent year-over-year. The average selling price for September 2018 home sales climbed 2.9 per cent on an annual basis to $796,786. The MLS Home Price Index (HPI) composite benchmark price was up by two per cent over the same period.
There were 15,920 new listings in TREB’s MLS System in September 2018, a drop of 3.1 per cent compared to September 2017. With an increase of sales year-over-year and a decrease in new listings, market conditions have become tighter, resulting in many buyers finding it more difficult to find a home that meets their needs.
“While higher borrowing costs and tougher mortgage qualification rules have kept sales levels off the record pace set in 2016, many households remain positive about home ownership as a quality long-term investment,” said Garry Bhaura, TREB president, in a press release. “As the GTA population continues to grow, the real challenge in the housing market will be supply rather than demand. The Toronto Real Estate Board is especially concerned with issues affecting housing supply as we move towards municipal elections across the region.”
After preliminary seasonal adjustment, home sales climbed 0.2 per cent on a monthly basis in September 2018. The average selling price after seasonal adjustment declined by 0.5 per cent month-over-month.
“Generally speaking, annual rates of price growth have been stronger for higher density home types in 2018, including condominium apartments, townhouses and semi-detached houses,” added Jason Mercer, TREB’s director of market analysis. “In many neighbourhoods, these home types provide more affordable home ownership options. This is why a policy focus on increasing mid-density housing options throughout the GTA is important.”