Photo: James Bombales
After posting significant sales gains this summer, the GTA housing market cooled somewhat in September, in what one industry association is calling a sign of tightening conditions.
Sales were up 1.9 per cent year-over-year last month, following an 8.8 and 18.6 per cent year-over-year increase in August and July, respectively, according to the Toronto Real Estate Board (TREB).
Housing Market News Alerts
Sign up for news alerts on the Toronto housing market
The organization pointed to a dip in supply as a potential reason for the slowing sales, as new listings dipped 3.1 per cent year-over-year last month.
“As the GTA population continues to grow, the real challenge in the housing market will be supply,” writes TREB president Garry Bhaura, in a statement.
Home prices rose 2.9 per cent year-over-year to an average sale price of $796,786, with condos performing particularly well. The average detached home sold for $1,008,361, down 0.6 per cent year-over-year, while the average condo sold for $570,140, up 10 per cent year-over-year.
“Generally speaking, annual rates of price growth have been stronger for higher density home types in 2018, including condominium apartments, townhouses and semi-detached houses,” writes TREB director of market analysis Jason Mercer, in a statement. “In many neighbourhoods, these home types provide more affordable home ownership options. This is why a policy focus on increasing mid-density housing options throughout the GTA is important.”
Would-be home buyers should brace for price growth to continue, according to Royal LePage Signature Realty sales representative Cam Woolfrey.
“When you start looking at 10-year averages, I think prices are heading in a more healthy direction, as opposed to the large peaks and deep valleys we’ve seen over the last year or so,” he told Livabl earlier this month. “In markets like Toronto, where there’s still strong demand, prices will continue to move upwards, but at a more moderate pace.”