Following a healthy June, year-over-year sales numbers and home prices rose again in July, indicating that the Toronto real estate market is recovering.
According to the latest market report from the Toronto Real Estate Board (TREB), 6,961 residential sales were reported through its MLS system in July, representing a whopping increase of 18.6% compared to July 2017.
Meanwhile, the average selling price of detached homes was $782,129, an increase of 4.8% from July 2017. There was also growth from month-to-month; sales saw an increase of 6.6% and average prices rose by 3.1%.
As they have for months, condo prices in the 416 and 905 area continued to rise in July, hitting an average selling price of $546,984 – a year-over-year increase of 8.9%. The number of condo sales also rose. In Toronto, the number of sales was up 5.8% from July 2017. In the 905 region, the year-over-year increase was a whopping 19.1%. In total, 2,002 condo sales were reported through TREB’s MLS system.
“We have certainly experienced an increase in demand for ownership housing so far this summer,” says Jason Mercer, the 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.”
New listings in July 2018 were down by 1.8% year-over-year, indicating that housing supply remains a concern.
“No one will argue that housing supply remains an issue,” says Garry Bhaura, president of the TREB. “The new provincial government and candidates for the upcoming municipal elections need to concentrate on policies focused on enhancing the supply of housing.”
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