Photo: James Bombales
Home sales picked up steam in July across the Toronto region, with strong year-over-year gains recorded across all housing types in both the 416 and 905.
The sales figures, released today by the Toronto Real Estate Board (TREB), signal “an increase in demand for ownership housing so far this summer” according to Jason Mercer, the board’s Director of Market Analysis.
GTA home sales rose to 6,961 in July, up 18.6 per cent from a year ago, with particular strength in detached homes, which saw a 26.8 per cent rise. The average sale price in July also increased 4.8 per cent to $782,129.
Housing Market News Alerts
Sign up for news alerts on the Toronto housing market
“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,” says TREB’s Mercer in a statement accompanying the data.
In response to the TREB data, BMO Chief Economist Douglas Porter was quick to point out that Toronto, while bucking the national trend of moderating housing activity last month, also saw “very low” levels of home sales in July 2017. In a note published today, the economist also pointed out that the most recent monthly sales total is still down 30 per cent from two years ago.
Nevertheless, TREB’s President Garry Bhaura used the strong year-over-year rise in activity to urge the new provincial government to enact policies that will increase housing supply in the region.
“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,” he says in a statement.