GREATER TORONTO – In a month where the number of available listings in Toronto was scarce – even compared to the previous month’s below-average total of 11,346 – the average price of GTA homes broke yet another record, according to new numbers from the Toronto Real Estate Board (TREB).
The Board’s newest Market Update report, issued September 7, reports that August’s average home price of $710,410 (which includes sales of all home types) broke not only August 2015’s average of $603, 534, but also any other August since TREB began recording the statistic.
The high sales price was driven largely by a relatively low availability of active listings, which fell from 15,996 in August of last year, to just 9,949 this past month – reflecting a dramatic -37.8 per cent year-over-year decrease.
“The conditions underlying strong demand for ownership housing remained in place,” noted TREB president Larry Cerqua.
“Unfortunately, we did not see any relief on the listings front, with the number of new listings down compared to last year. This situation continued to underpin very strong home price growth, irrespective of home type or area.”
In spite of the rising prices, GTA real estate sales activity kept up its hot pace – notching a 23.5 per cent year-over-year increase, with a sales total of 9,813. TREB’s report did note, however, that August had two more working days in 2016 than in 2015 – a discrepancy that, when accounted for, leaves the actual year-over-year change closer to 13 per cent.
Jason Mercer, TREB’s Director of Market Analysis, noted that the month’s strong sales activity was driven largely by a continued influx of newcomers to the area.
“Population in the GTA continues to grow,” explained Mercer. “The resulting growth in households coupled with favourable economic conditions and low borrowing costs means that we remain on track for another record year for home sales.
Out of all the different home types, the biggest seller by far was detached homes – 3,586 of which sold in the suburban “905” region, and 863 in the urban “416,” where available detached properties have been few and far between in recent years.
Possibly due to the number of listings declining, homes listed this August also sold more quickly than a year prior, with the average number of days on market falling from 23 to just 18.