Photo: James Bombales
Toronto home sales rose again in October, jumping 6 percent year-over-year, in a continuation of the market’s slow upward trajectory.
But as sales continue to climb, listings are trending down, according to the latest release from the Toronto Real Estate Board (TREB). Listings fell 2.7 percent year-over-year last month, marking the fifth consecutive month of falling supply in the region.
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“Annual sales growth has outstripped annual growth in new listings for the last five months, underpinning the fact that listings supply remains an issue in the Greater Toronto Area,” writes Jason Mercer, TREB’s director of market analysis, in a statement.
Falling supply matched with rising demand means that prices are on their way up. The average sale price for a home rose 3.5 percent year-over-year last month, hitting $807,340. Meanwhile, the MLS Home Price Index Composite Benchmark was up 2.6 percent year-over-year.
According to TREB president Garry Bhaura, the market’s gradual warming can be attributed to its adjustment to various policy changes over the past year, including stricter mortgage rules which came into effect in January.
“Annual sales growth has been positive since the late spring. While the [new mortgage stress test] and higher borrowing costs have kept sales below 2016’s record pace, many households in the Greater Toronto Area remain upbeat on home ownership as a quality long-term investment,” he writes.
Bhaura predicts that a strong regional economy and steady population growth should support rising sales numbers “well into” 2019.