Home sales in the Toronto housing market showed some improvement in June along with the average selling price.
Toronto Real Estate Board members sold 8,082 homes through the MLS in June; 2.4% more than in June 2017 and a 17.6% jump from May 2018.
The market continues to be volatile following policy changes including the B-20 mortgage guidelines which tightened lending conditions for borrowers.
"Home ownership has proven to be a positive long-term investment. After some adjustment to the Fair Housing Plan, the new Office of The Superintendent of Financial Institutions (OSFI) stress test requirement and generally higher borrowing costs, home buyers are starting to move back into the market, with sales trending up from last year's lows. Market conditions appear to be tightening, with sales accounting for a greater share of listings, as new listings have dropped compared to last year," said new TREB president Garry Bhaura.
Average selling price rises
There was a 2% year-over-year rise in average selling price to $807,871 which means a 3.4% rise month-over-month following preliminary seasonal adjustment.
The HPI was flat month-over-month and down 4.8% year-over-year. TREB says that the difference between HPI and average selling price is likely to be due, in part, to a different mix of homes sold on a year-over-year basis. June 2018 saw a larger share of low-rise homes sold.
"The expectation is to see improvement in sales over the next year. Over the same period, however, it is likely that issues surrounding the supply of listings will persist. This suggests that competition between buyers could increase, exerting increased upward pressure on home prices. With a new provincial government in place and municipal elections on the horizon, housing supply should be top-of-mind for policy makers," said Jason Mercer, TREB's Director of Market Analysis and Service Channels.
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