August 2018 Market Watch
Toronto Home Sales & Prices Up
From a Year Ago
Toronto Real Estate Board President Garry Bhaura announced sales and price increases on a year-over-year basis in August. Greater Toronto Area REALTORS® reported 6,839 sales through TREB’s MLS® System in August 2018 – a 8.5% increase compared to August 2017.
Both the average selling price, at $765,270, and the MLS® Home Price Index Composite Benchmark for August 2018 were up compared to the same month in 2017, by 4.7% and 1.5% respectively. Detached home sales were up by double digits on a year-over-year percentage basis – substantially more than many other less-expensive home types.
“It is encouraging to see a continues resurgence in the demand for ownership housing. Many home buyers who had initially moved to the sidelines due to the Ontario Fair Housing Plan and new mortgage lending guidelines have renewed their search for a home and are getting deals done much more so than last year. In a region where the economy remains strong and the population continues to grow, ownership housing remains a solid long-term investment,” said Mr. Bhaura.
Month-over-month sales and price growth also continued in August. On a preliminary seasonally adjusted basis, August 2018 sales were up by two percent compared to July 2018. The seasonally adjusted August 2018 average selling price was down slightly by 0.2% compared to July 2018, following strong monthly increases in May, June, and July.
“In August, the annual rate of sales growth outpaced the annual rate of new listings growth. We only have slightly more than two-and-a-half months of inventory in the TREB market area as a whole and less than two months of inventory in the City of Toronto. This means that despite the fact the sales remain off the record highs from 2016 to 2017, many GTA neighborhoods continue to suffer from a lack of inventory.”
– Jason Mercer, Director, Market Analysis, TREB
Average Condo Price Continues to Climb
“Condominium apartments have outperformed other housing types over the past year, in terms of price growth. It has been a seller’s market in many neighborhoods for this home type, which is why we have continued to report average price growth more than twice the rate of inflation.”
– Garry Bhaura, 2018/2019 TREB President
Toronto Real Estate Board President Garry Bhaura announced that the average selling price for condominium apartments sold through TREB’S MLS® System in the second quarter of 2018 was up by 5.4% year-over-year to $561,338.
The highest average selling price was in the City of Toronto, at $603,480 – up 6.5% compared to Q2 2017.
Condominium apartment sales through TREB’s MLS® System amounted to 6,837 in Q2 2018 – down 16.5 per cent from 8,188 sales reported in Q2 2017. However, the number of new condominium apartment listings was down by 15.9 per cent on a year-over-year basis. The fact that sales and new listings were down by similar annual rates suggests that market conditions have remained similar over the past year, which has supported continued price growth.
“First time buyers continue to be a key driver of condominium apartment demand. The relative affordability of condos versus low-rise home types, especially with the onset of stricter mortgage qualification guidelines and generally higher borrowing costs, has also been a key factor underpinning tight condo market conditions and continued average price growth,” said Jason Mercer, TREB’s Director of Market Analysis.
Top 12 Reasons To Invest in Toronto Condo Real Estate
1. Higher Resale Value
2. Condos are more Affordable
3. Needs Less Initial Investment
4. No Tenant Hassle while your Investment is Growing
5. No Condo Fees for at least years
6. No Property Taxes for at least 4 years
7. No Mortgage Payment for at least 4 years
8. Easy to Rent
9. Easy to Sale
10. More Demand in The Condo Market
11. Easier to get Mortgage on condos
12. Higher Return on your Investment (Higher ROI)