TREB President Garry Bhaura announced year-over-year increases in home sales & average sale prices reported through TREB's MLS® System in October 2018.
GTA REALTORS® reported 7,492 sales through TREB's MLS® System in October 2018 – a 6% increase compared to October 2017. On a preliminary seasonally adjusted basis, sales were down by 1% compared to September 2018.
The average sale price for October 2018 was up 3.5% on a year-over-year basis to $807,340. After preliminary seasonal adjustment, the average selling price was up 1% compared to September 2018. The MLS® Home Price Index (HPI) Composite Benchmark was up by 2.6% compared to October 2017. Price growth continued to be driven by the condominium apartment and higher density low-rise market segments. As Mr. Bhaura said:
Annual sales growth has been positive since the late spring. While the OSFI stress test & 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. A strong regional economy & steady population growth will continue to support the demand for housing ownership as we move into 2019.
There were 14,431 new Listings entered into TREB's MLS® System in October 2018 – down 2.7% compared to October 2017. The fact that sales were up & new listings were down year-over-year in October suggests that market conditions became tighter. Jason Mercer, TREB's Director of Market Analysis adds:
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. With municipal elections in the rear view mirror, all levels of government need to concentrate on policies that could remove impediments to a better-supplied housing market, including facilitating the development of a broader array of medium density housing choices.