Canada's Condominium Magazine
The overall GTA market, taking into account all housing types, bounced back in June 2018 with 8,082 home sales in the TREB MLS system, up 2.4 percent as compared to June 2017. This represents a 17.6 percent rise on a month-over-month basis, compared June 2018 to May 2018. This is not surprising after reports of bidding wars in prime GTA markets.
Sales prices up two percent
In addition to a bounce in sales numbers, prices also nudged upwards almost two percent year-over-year, to $807,871 in June 2018. Month-over-month, seasonally adjusted, the price increase is 3.3 percent June over May 2018.
Prices on condos increased the most, at 7.9 percent overall, largely due to short supply against high demand. While prices are up nearly 8 percent, sales are down on condo apartment resales 5.3 percent — again due to short supply.
“The expectation is to see improvement in sales over the next year. Over the same period, however, it is likely that issues surrounding the supply of listings will persist,” said Jason Mercer, TREB’s Director of Market Analysis and Service Channels. “This suggests that competition between buyers could increase, exerting increased upward pressure on home prices. With a new provincial government in place and municipal elections on the horizon, housing supply should be top-of-mind for policy makers.”
Average sales prices
For June, the leader in total sales share is detached homes, followed by Condo apartments:
- Detached homes: 44.4% of total sold or 3,589 sold, average price $1,033,574
- Condo apartments: 27.6% of total sold or 2,234, average price $561,097
- Semi-detached homes: 10.1% of total sold or 816, average price $787,227
Short inventory and ongoing high demand for the GTA area will likely see ongoing pressure on prices and upticks on sales. The Toronto Real Estate Board President Garry Bhaura explained:
“Home ownership has proven to be a positive long-term investment. After some adjustment to the Fair Housing Plan, the new Office of The Superintendent of Financial Institutions (OSFI) stress test requirement and generally higher borrowing costs, home buyers are starting to move back into the market, with sales trending up from last year’s lows. Market conditions appear to be tightening, with sales accounting for a greater share of listings, as new listings have dropped compared to last year.”