In July 2018, the GTA experienced strong growth in both the number of home sales and the average selling price, reports the Toronto Real Estate Board (TREB).
“Home sales result in substantial spin-off benefits to the economy, so the positive results over the last two months are encouraging. However, no one will argue that housing supply remains an issue,” said Garry Bhaura, TREB president, in a press release. “The new provincial government and candidates for the upcoming municipal elections need to concentrate on policies focused on enhancing the supply of housing and reducing the upfront tax burden represented by land transfer taxes, province-wide and additionally in the City of Toronto.”
Last month, there were 6,961 home sales in the GTA, up 18.6 per cent year-over-year. Over the same period, the average selling price increased by 4.8 per cent to $782,129, including a moderate increase for detached homes. Meanwhile, new listings fell 1.8 per cent year-over-year in July 2018.
Preliminary seasonal adjustment indicated strong month-over-month increases in sales and average price, at 6.6 per cent and 3.1 per cent, respectively. Seasonally adjusted sales were at the highest level for 2018 and the seasonally adjusted average price reached its highest level since May 2017.
The MLS Home Price Index Composite Benchmark for July 2018 was down slightly on an annual basis. However, the annual growth rate looks to be trending toward positive territory in the near future.
“We have certainly experienced an increase in demand for ownership housing so far this summer,” added Jason Mercer, TREB’s director of market analysis. “It appears that some people who initially moved to the sidelines due to the psychological impact of the Fair Housing Plan and changes to mortgage lending guidelines have re-entered the market. Home buyers in the GTA recognize that ownership housing is a quality long-term investment.”