SALES INCREASE 13% YEAR-OVER-YEAR
It’s been quite a summer for the GTA real estate market. Following a very strong July, the month of August has shown no signs of a slowdown with 7,711 sales reported by the Toronto Real Estate Board. This represents a 13.4% increase in volume compared to the same period last year. Total sales for 2019 are now at 60,177, up 12.2% year-over-year.
The average price of all sales in August was $792,611, up 3.6%. Despite the annual growth, it was a third straight monthly decline. This indicates a greater interest in modestly priced property and not a decline in prices. The MLS Home Price Index Composite Benchmark, which illustrates inflation in the market, was up 4.9% and increased for all major housing categories.
While price growth was highest in the condominium market at +6.1% (5.7% in the 416), detached homes saw the greatest gain in unit sales at +21.3% (+8.8% in the 416). Sales of townhomes rose 13.7% (+17% in the 416) and semi-detached home sales increased by 11.8% (-1.6% in the 416; +18.5% in the 905). As a result of sustained price growth in the condo market, and the shrinking price gap between high- and low-rise homes, total condo sales were up only 4% (+2.2% in the 416).
New listings declined by 3.0% from last August, well short of the pace of sales growth. There is currently a 2.06-month supply in the GTA. With reduced choice in the market and an increased demand for ownership, expect upward pressure on prices as we continue to see ‘seller’s market’ conditions.
Despite the summer holidays, July and August were very busy months for the housing market. We expect an even more active September as new listings are introduced in time for the fall market.
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