Toronto’s real estate market showed no signs of cooling down in the month of August, as both home sales and average prices saw significant increase from the same point in time last year. Figures from the most recent monthly sales report released by the Toronto Real Estate Board (TREB), suggest that the Toronto market is still a sellers’ market, according to Kendra Mangione of CTV News and TREB President Mark McLean.
Home sales in Toronto went up 5.7% from August of last year, a modest increase. In addition, the average sale price was up 10% when compared to that of August 2014. This year, the average was $602,607 across the GTA, while last year the average was $546,482. Interestingly enough, the average is up when compared to a year ago, but fell by $5,000 from the average price recorded by the TREB in July of this year ($609,236).
Average Home Sales Numbers in Toronto:
- Detached home: $792,111
- Semi-detached: $541,919
- Townhouses: $469,721
- Condominiums: $380,228
TREB President Mark McLean said in the report:
“Buyers in the (Greater Toronto Area) remain confident in their ability to purchase and pay for a home over the long term.”
Susan Pigg of The Toronto Star notes that the report illustrated a 14% rise in sales from August 2014, an indication that more and more people are searching for alternatives to low-rise detached, semi-detached and townhomes, which continue to climb to prices that are becoming out of reach for most people. This overwhelming demand pushed up condo prices by 9.5% in the City of Toronto and 4.1% in the 905 regions.
New listings were up 8.3% last month, and that is in spite of the fact that the total number of homes available for sale (known as active listings), were actually down 10.5%. A total of 7,998 homes changed hands in August, up from 7,568 a year ago. Toronto remains on track for sales this year to exceed the previous record of 93,193 homes set back in 2007 before the recession took hold. Pigg argues that this discrepancy is due to the number of buyers continuing to outstrip the number of properties for sale, “with the frenzy fuelled by interest rates that are now expected to stay low for some time given Canada’s sluggish economy, the impact of low oil prices and the continuing chaos playing out on world stock markets.”
Jason Mercer, TREB’s director of market analysis in a statement.
“A record year for home sales continued to unfold in August as competition between buyers exerted upward pressure on selling prices. It was encouraging to see annual growth in new listings outstrip annual growth in sales, but we will need to see this for a number of months before market conditions become more balanced.”