Continued resurgence in demand for ownership housing
With the increasing demand for ownership housing throughout the spring and summer, September 2019 reached a peak for the highest annual rate of price growth for 2019. In September, the average selling price for all home types combined was up by 5.8 per cent over September 2018 to $843,115.
Sales were also up by 22 per cent on a year-over-year basis, with 7,825 sales reported through TREB’s MLS system. Although this month’s market figures are still well-below the record peak of more than 9,800 sales in 2016, the growth of sales seen demonstrates two key trends: Strong year-over-year sales growth and a continued resurgence in demand for ownership housing.
Meanwhile, tightening market conditions can be seen through the lagging number of new listings which were down by 1.9 per cent when compared to 2018, more evidence of a continued lack of supply in the GTA housing market.
Building more diverse housing stock key to alleviating affordability pressures
With the election recently wrapped up and all federal political parties having included measures in their respective platforms to address affordability issues, particularly those faced by first-time buyers, it will be interesting to see how these promises unfold with the new government in place.
Most of the solutions proposed by the parties have been focused on addressing demand. Of course, demand-side policies are important, but it’s absolutely necessary for all levels of government to design policy that is focused on promoting a sustainable supply of different housing types.
Recent TREB-commissioned Ipsos polling results show that many intending buyers are still focused on purchasing ground-oriented housing such as semi-detached or townhomes. These results emphasize the need for a greater diversity of housing types to bridge the gap between detached homes and highrise condos.
The need for greater and more diverse ownership and rental housing is further underpinned by Statistics Canada’s most recent national population estimate, which represented the highest 12-month population increase ever recorded.
Michael Collins is president of the Toronto Real Estate Board, a professional association that represents 54,500 professional realtor members in the Greater Toronto Area. You can contact him at firstname.lastname@example.org. For updates on the real estate market, visit trebhome.com.