Home sales up 23.5% year-over-year to 9,813
Average home price went up 17.7% from a year ago to $710,410
Contrast to the collapsing home sales in Vancouver, Toronto housing market remained extremely strong in August. Home sales were up 23.5% in the Greater Toronto Area (GTA) to 9,813 compared to 7,943 in August 2015, while average home price went up 17.7% from a year ago to $710,410, according to the Toronto Real Estate Board.
Sales of condos, townhomes, and detached homes all had double digit increase compared to August last year. Sales of condos increased the most by 32%, driven by a 33.5% increase in Toronto and 44.4% in York Region.
Average price for a detached home went up 21.5% to $964,002 in August, compared to Aug 2015, while average price for semi and townhomes were up 17.6% and 17.7% to $637,780 and $554,775, respectively. Average price for condos also saw strong growth of 9.8% to $417,869.
New listings continued to lag behind the strong home sales, with August’s new listings down 1.2% compared to one year ago, led by a 7.4% decline in new listing of condos.
Other market indicators continued to point to a tightening housing market in Toronto where strong demands were not being met due to insufficient homes available for sale, especially in the low-rise home markets.
Sales To New Listings Ratio continued to show an extreme seller’s market across all home types and in all GTA regions.
Average Selling Price To List Price was 102%, indicating more and more buyers are willing to offer a higher price in order to secure a property. The ratio is remarkably high in 2016 compared to those in 2010-2015. This is true for condos, but acutely more so for townhomes, semi, and detached homes.
Similarly, Days On Market, another housing market indicator that measures how fast homes are selling, was mere 18 days, an all-time low for the month of August and indicating an extremely fast moving market. The average Days On Market for the month of August from 2010 to 2016 is 27 days.
Looking forward, there may be a glimpse of hope that more listings could come onto the market. Although August’s new listings were 1.2% lower compared to last year, total new listings were actually higher than the 7-year average from 2010-2016 for the month of August. Higher number of listings in condos and townhouses were the main contributing factors. Higher prices in the past were able to motivate more home owners to list their properties for sale. Although this year so far is an exception, it is still possible that, at some point in the near future, there would be more home owners who would want to take advantage of the rising home price to lock in profits and list their home for sale.