Toronto home prices: Growth continues

Rapidly snapped up new listings more than made up for lower sales in August

Toronto home prices: Growth continues

Progressively tighter market conditions and sustained buyer competition have impelled double-digit annual price increases in the Toronto market, according to the region’s real estate board.

The benchmark price in the market was up by 17.4% annually in August, while the average selling price across all residential asset classes grew by 12.6% during the same period to reach roughly $1.071 million.

A total of 8,596 sales took place in the region, moderating by 19.9% annually. The number of new listings also declined by 43% year over year.

“While the market has taken its regular summer breather, it is clear that the demand for ownership housing remains strong. At the same time, the supply of listings is down,” the Toronto Regional Real Estate Board said in its latest report.

The TRREB expressed grave concern over the volume of new listings, which were at their lowest level for the past decade or so.

“It is clear that the supply of homes is not keeping pace with demand, and this situation will become worse once immigration into Canada resumes,” said Kevin Crigger, president of the TRREB.

Read more: What’s happening with home sales in the Greater Toronto area?

John DiMichele, CEO of TRREB, said that the trends merit concrete policy action by those who would eventually take the reins of government.

“With a federal election just weeks away, we are calling on all political parties to continue focusing on housing policies that address supply and affordability across the country,” DiMichele said. “Bold action, not promises, are needed to ensure that Canada has a stable and sustainable housing market now, and in the decades to come. This will ensure that the Greater Golden Horseshoe remains competitive on the global stage, in terms of attracting businesses and households to the region.”

“Working with provincial and municipal levels of government on solving supply-related issues is much more important to affordability than interfering with consumer choice during the home buying and selling offer process or revisiting demand-side policies that will at best have a short-term impact on market conditions,” Crigger added.