Summer Ends in the GTA with a Hot Market
The results are in. How did this summer fare in the world of GTA real estate?
Better than 2018, according to the latest report from the Toronto Real Estate Board (TREB).
Greater Toronto Area Real Estate Agents reported 7,711 residential sales last month. This number represented a 13.4% increase over sales reported in August 2018 and a minor increase (0.8%) from July’s sales numbers.
The average selling price in August 2019 hit $792,611, up 3.6% year-over-year. These year-over-year increases are similar to those recorded for July 2019.
Another difference between last summer and summer 2019: market conditions. They got tighter. On a year-over-year basis, new listings were down by 3%, and active listings were down by more than 11%.
As noted by TREB, sales growth has far outstripped growth recorded for new listings.
“This year’s market through August has been characterized by receding listings and increasing sales relative to 2018,” says Jason Mercer, TREB’s chief market analyst. “Competition between buyers has increased, which has led to stronger annual rates of price growth, most notably during this past spring and summer.”
What happens if supply continues to shrink? Buyers may want to buckle up, as prices could continue to stretch.
Condo Prices Continue to Rise as Temperature Drops
The average selling price of a home in the Greater Toronto Area last month hit $792,611, a 3.6% increase over August 2018, according to the latest report from the Toronto Real Estate Board (TREB).
Leading the way was the condominium apartment segment, with an average price increase of 5.7% in the 416 region and 8.5% in the 905 region.
When it comes to the number of sales recorded by Greater Toronto Area Real Estate Agents, last month, the story changes. Representing a 13.4% increase over sales reported in August 2018, 7,711 residential sales were recorded in August 2019.
And it was the detached home segment that saw the most action. While condo apartment sales increased by 4% year-over-over year, detached home sales increased by 21.3%.
“GTA-wide sales were up on a year-over-year basis for all major market segments, with annual rates of sales growth strongest for low-rise home types,” says TREB president Michael Collins. “This reflects the fact that demand for more expensive home types was very low in 2018 and has rebounded to a certain degree in 2019.”
Across all housing segments, the number of active and new listings was down compared with August 2018 (by 11.2% and 3%, respectively). If supply remains limited, expect to see condo prices continue to spike.
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