The Toronto Regional Real Estate Board (TRREB) has published its housing statistics for August, reporting 8,596 sales. Though down 19.9% compared to last year’s record, this ranks as the third-best sales total on record for the month of August.
Despite the decrease in year-over-year sales, market conditions continue to tighten, with sales increasingly accounting for a greater share of new listings. Listings were down 43% year-over-year in August, and with active listings standing at just 8,201, the market has less than a one month supply.
The average sale in August took place with only 16 days on the market. As always, this will vary by housing type and region. Towns that are located east of Toronto, for example, continue to see very strong demand. In Ajax, single detached homes sold in only 7 days; in Oshawa, semi-detached homes sold in only 6 days; and in Whitby, townhomes sold in only 6 days, at an average of 13% over the list price.
The short sales cycle and dwindling supply are placing upward pressure on prices. The average sale in August was 5% above the asking price. Again, this varies by housing type and region. On average, single detached homes sold for 5% over list, semi-detached homes sold for 8% over list, townhomes sold for 8% over list, and condo apartments sold for 1% above list. Durham, which includes Pickering, Ajax, Whitby, and Oshawa, regularly saw sales prices of 12% over list, more than in any other region.
The average sales price for August was $1,070,911, an increase of 12.6% compared to last year. The MLS Home Price Index (HPI) Composite Benchmark, which reflects annual inflation, was up 17.4% (9.3% in Toronto). The biggest increase in value was found in single detached homes which were up 21.8% (13% in Toronto).
Looking at price by category, detached homes sold for an average of $1,423,807, representing a year-over-year increase of 21.4%. The average price for semi-detached homes was $1,031,580 (+13.9%), townhomes rose to $873,961 (+17.7%), and the average price of condos was $688,568 (+9.4%).
Demand for home ownership is strong across the GTA. Despite the upcoming Federal election, which can add uncertainty to the market, expect strong upward pressure on home prices for the remainder of the year. With the autumn market set to begin in a few weeks, it is important to speak with a trusted and experienced sales professional to set you up for success in achieving your real estate goals.
