A new monthly resale housing report from the Toronto Real Estate Board (TREB) is showing a bounce-back in the turbulent Greater Toronto Area housing market. The July 2018 figures point to a continued rebound in the market, with strong increases recorded in both the number of home sales and average selling prices for the second consecutive month.
The 6,961 home sales reported for July 2018 represents an 18.6% year-over-year increase, while the average selling price increased by 4.8% year-over-year during the same period to $782,129. Unsurprisingly, the increases recorded in price and volume of sales correlate with a 1.8% decrease in new listings, underscoring the continued lack of supply that TREB has been cautioning about for several months.
“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," reads a statement from TREB President Garry Bhaura. "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.”
Month-over-month increases were also noted in both sales and average price, respectively rising 6.6% and 3.1%, while the seasonally adjusted average price reached its highest point in 14 months. While the MLS® Home Price Index (HPI) Composite Benchmark decreased slightly over July 2017's numbers, TREB notes that the annual growth rate is showing a positive trend.
“We have certainly experienced an increase in demand for ownership housing so far this summer" stated TREB’s Director of Market Analysis, Jason Mercer. "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.”
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