Spotted by Paul Bica
TREB REALTOR® Members reported 9,989 transaction through TREB’s MLS® System in July 2016. The number went up by 1.10 per cent, marking the highest number of transactions on TREB’s record for this month.
While sales continued to climb, number of listings decreased more throughout the month. New listings show 7.87 per cent drop from previous year in the GTA. Active listings dropped by 31.95 per cent. This troubling trend presented itself mostly on detached and semi-detached houses and other sorts of ground housing options. The only segment experiencing overall growth, represented by 9.72 per cent higher sales, was the condominium segment.
Toronto Real Estate Board President Larry Cerqua commented on the situation:
GTA REALTORS® have been working very hard on behalf of their buyer clients to help them find a home meeting their needs. Unfortunately, listings for single-detached and semi-detached houses and townhouses continue to be in short supply. The result has been an increase in pent-up demand and annual rates of price increases well above the rate of inflation. Housing policy is now top of mind for all levels of government. Policy makers need to be focusing on solutions to the sustained lack of low-rise inventory throughout the GTA.
Due to the lack of listings, prices are rising steadily through the city. GTA experienced a 16.51 per cent increase and City of Toronto’s prices went up by 11.63 per cent. The Central Toronto Area experienced another price growth by 8.60 per cent, making the average price in this area go up to $1,104,415.
According to Jason Mercer, TREB’s Director of Market Analysis:
Relatively strong labour market conditions, above-inflation average income growth, and record low borrowing costs have kept many households confident about purchasing a home. As long as very strong buying intentions are up against an extreme shortage of listings, expect home price growth to greatly outpace the rate of inflation.