Toronto’s housing market continues to settle into a new normal as sales and prices changed little in September.
Home sales climbed a seasonally adjusted 0.2 per cent from August to 6,455, 1.9 per cent more than a year ago, the Toronto Real Estate Board said Wednesday. The average home price fell 0.5 per cent from August to $796,786, 2.9 per cent higher that a year earlier. The benchmark price, which measures the value of a typical home, was up just 0.1 per cent on the month to $765,400.
“While higher borrowing costs and tougher mortgage qualification rules have kept sales levels off the record pace set in 2016, many households remain positive about home ownership as a quality long-term investment,” the board’s president, Garry Bhaura, said in a statement. “As the Greater Toronto Area population continues to grow, the real challenge in the housing market will be supply rather than demand.”
Toronto’s housing market has kept its footing over the past few months as sales grew and prices stabilized, following a correction earlier in the year when government regulations came into place to tame speculative buying.
“Generally speaking, annual rates of price growth have been stronger for higher density home types in 2018, including condominium apartments, townhouses and semi-detached houses,” said Jason Mercer, TREB’s director of market analysis. “In many neighborhoods, these home types provide more affordable home ownership options.”
Detached homes fell behind other housing segments in September, with the benchmark price dropping 1.6 per cent from a year ago to $914,200. In contrast, condo apartments led the price gains, jumping 10.1 per cent from last September to $506,300.