The Greater Toronto Area's home price index was up 4.4 per cent last month as the supply of properties for sale tightened and the number of sales jumped 24.3 per cent from July last year, the Toronto Real Estate Board reports.
The number of properties sold increased to 8,595 from 6,916, with sales of all four categories of housing up by double digits.
There were 14,393 new listings in the GTA during the month, up from 13,873 in July 2018, but the total number of active listings at the end of July was down 9.1 per cent from a year ago. There's a growing demand for residential properties due to population growth. As more and more households come to terms with the stress test and move back into the market in the coming months and years, they could suffer from a chronically under-supplied marketplace and an acceleration of home price growth to unsustainable levels.
TREB says that the supply of properties for sale in the Greater Toronto Area was also tighter than it was last year. Fortunately, policy makers have acknowledged the housing supply issue and are working toward solutions.
The overall average selling price for properties in the Greater Toronto Area was up 3.2 per cent year-over-year to $806,755. Sales of fully detached homes have been more affected by a stress test required for federally regulated mortgages and the average price for that category of housing was down 0.9 per cent overall.
Broadly speaking, increased competition between buyers for available properties has resulted in relatively strong price growth above the rate of inflation for semi-detached houses, townhouses and condominium apartments.
The single-digit price increases are largely sustainable, but if listings continue to lag it could accelerate price growth.
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