The Greater Toronto Area may be looking at even tighter housing conditions in the near future as sales have completely rebounded from a rough first half of 2018 and are now outstripping supply.
Sales are up an average of 6 per cent across all market types, from Toronto condos to houses for sale in Etobicoke, while new listings are down 2.7 per cent, according to October data recently released the Toronto Real Estate Board (TREB). MLS recorded 14,431 new listings October 2018 and 7,492 sales.
“Annual sales growth has outstripped annual growth in new listings for the last five months, underpinning the fact that listings supply remains an issue in the Greater Toronto Area,” said Jason Mercer, director of market analysis for TREB. Mercer also calls on all levels of governments to create policies to increase housing supply and especially to create options for medium density housing, between a condo and a large single-family home, of which Toronto has little.
Semi-detached housing showed the strongest sales growth across TREB, up 12.7 per cent year-over-year to 774 units sold. Townhouses showed the slowest sales growth, up a scant 0.8 per cent to 1,154 units sold. Even condos, which have had inconsistent sales growth all year were up this October by 5.5 per cent to 2,127 units sold. In absolute terms, detached houses were in most demand, with 3,328 units sold and up 7.1 per cent.
Prices showed little correlation with sales growth this month, except that they too are rising.
Condo prices continue to outpace all other forms of housing and are now selling for an average of over half a million in the GTA. They are up 7.5 per cent $562,523. It’s no surprise that condos are doing so well when their alternative — detached housing — is almost twice as expensive at just over $1 million. Still, detached houses have shown slow price growth all year, and are stable, growing just 1 per cent from October 2017.
The average property price is $807,340, up 3.5 per cent and will likely go up as long as people still want to live in Toronto, inventory remains low and prospective sellers sit on their home.
“While the OSFI stress test and higher borrowing costs have kept sales below 2016’s record pace, 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,” said TREB President Garry Bhaura.
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