Aug 04

The average price of a detached home in Toronto has soared 21% from July 2015



Toronto’s red hot housing market is on pace for another record-setting year, as July home sales hit an all-time high of nearly 10,000 and prices rose by 16.7 per cent compared to the same month last year.

The average resale price for houses in the GTA this year climbed to $709,825, up $100,950 since 2015, the Toronto Real Estate Board reported on Thursday.

Although sales were up, the number of new listings decreased by more than 1,000, or 7 per cent, across the Toronto-area compared to last year, continuing a “troubling trend,” the TREB said in a news release.

The supply of single- and semi-detached homes and townhouses hasn’t kept up with demand, and this has driven up prices, TREB director of market analysis Jason Mercer explained in an interview.


“You’re seeing a steady labour market. You’re seeing low interest rates. It makes sense that people are looking to purchase homes,” he said, “but the issue is that, in a lot of cases, the type of homes people want to buy constrains the supply of listings.”

The shortage appears most acute in the detached and semi-detached home categories, where sales in the 416-area market decreased by 6.5 per cent and 11.5 per cent relative to July 2015. The average price of both home types went up by about 20 per cent in Toronto over the same period.

Despite a proliferation of condos in the Toronto area, sales increased 10.3 per cent, including about 1,882 within the 416. Average sale prices went up about 8.2 per cent in Toronto and 13 per cent in the 905.

Meanwhile, in Vancouver, the housing market has shown some signs of cooling down, the Real Estate Board of Greater Vancouver said on Wednesday based on July sales.

Their numbers predate a new 15-per-cent provincial tax on home transactions involving foreign buyers, which took effect on Aug. 2. B.C. announced the tax to rein in runaway real estate prices and keep residents from being shut out of the market.

There were 3,226 sales in the Vancouver region last month, down 18.9 per cent compared to July 2015, the REBGV said on Wednesday.

It is the first time since January that home sales dipped below the 4,000-mark in a month, the board noted.

“After several months of record-breaking sales activity, home-buyer demand returned to more historically normal levels in July,” said REBGV president, Dan Morrison.