Toronto resales gain 18.6% in July, average selling price up

There was strong growth for resales in the Greater Toronto Area in July with sales up 18.6% year-over-year to 6,961 units.

Toronto Real Estate Board says that the average sales price was up 4.8% to $782,189 including a moderate rise for detached home types.

Preliminary seasonal adjustment shows a 6.6% rise in sales compared to June with the average sales price showing a 3.3% rise month-over-month.

That puts seasonally-adjusted sales at a 2018 high point and the average sales price at the highest level since May 2017.

“We have certainly experienced an increase in demand for ownership housing so far this summer. It appears that some people who initially moved to the sidelines due to the psychological impact of the Fair Housing Plan and changes to mortgage lending guidelines have re-entered the market. Home buyers in the GTA recognize that ownership housing is a quality long-term investment,” said Jason Mercer, TREB’s Director of Market Analysis.

Supply issues remain
However, new listings were down 1.8% year-over-year and TREB president Garry Bhaura says more needs to be done by officials to address the low inventory issues.

“The new provincial government and candidates for the upcoming municipal elections need to concentrate on policies focused on enhancing the supply of housing and reducing the upfront tax burden represented by land transfer taxes, province-wide and additionally in the City of Toronto,” said Mr. Bhaura.