As we kick off the second half of 2019, the market for real estate in the GTA continues to maintain its strong pace. The Toronto Real Estate Board released the housing figures for June, and with 8,860 sales reported, there was a 10.4% increase in sales volume over the same period last year. Total sales for the first half of 2019 were up 8.5% year-over-year.

The average selling price of all transactions rose to $832,703, down slightly from May, but still representing a healthy annual gain of 3.0%. Price growth was driven by the high-density market segments, which include semi-detached, townhomes and condominiums. The MLS Home Price Index (HPI) Composite benchmark, which measures inflation in the market, was up 3.6%. Looking at the first half of 2019, the average sales price was $810,661, an increase of 2.4% over the first half of 2018.

While price growth in the market was led by high-density housing, the biggest gains in sales volume continue to be in low-rise housing. In June, detached sales were up 18.6% (+13.6% in the 416), semis were up 9.4% (+12.5% in the 416) and towns were up 12.0% (+17.5% in the 416), compared to the condo sector which was down 3.2% for the region and down 5.6% in Toronto.
New listings fell slightly from last June to 15,816, and active listings dropped 5.7% to 19,655, demonstrating a further tightening of market supply. Currently, there is a 2.2-month supply in the GTA, down from 2.6 months a year ago. With that in mind, expect upward pressure on prices as buyers compete for a limited housing stock. The average ‘Days on Market’ for all sales held steady at 21 days.

With buyers moving off the sidelines, we are seeing increased competition for available listings, resulting in price growth in many segments of the market. For more insight and analysis, be sure to speak with your Harvey Kalles Real Estate sales professional.