The Toronto Real Estate Board is reporting a six per cent increase in home sales last month compared to the same month a year earlier, with strong demand for condos and low-rise units.
The emerging seller’s market for homes was strongest in the city of Toronto, driven by a 10.9 per cent increase in the home price index for condos, which compares an equivalent unit from year to year.
The average sale price of a home for October 2018 in the GTA was up 3.5 per cent on a year-over-year basis to $807,340.
The average sale price for a condo was $603,153 in Toronto, compared to $461,013 in the 905. That’s a 4.1 per cent change year over year in the average price.
A detached house in Toronto came with an average price tag of $1.3 million, compared to $914,000 in the 905, reflecting a more modest increase of one per cent.
Supply of homes is tightening, with sales up and new listings down, according to TREB President Garry Bhaura. There were 14,431 new listings in the GTA in October 2018 — down 2.7 per cent compared to October 2017.
The market cooled in the spring when the federal government introduced new stress tests for homeowners and borrowing costs rose. Further interest rate hikes are expected in the coming year. But Baura remains optimistic about real estate sales, though he doesn’t expect a return of the 2016 boom in housing prices.
“Many households in the Greater Toronto Area remain upbeat on home ownership as a quality long-term investment. A strong regional economy and steady population growth will continue to support the demand for housing ownership as we move into 2019,” Bhaura said.