The average price of a Toronto home rising yet again after months of decline
According to the latest monthly market report from the Toronto Regional Real Estate Board (TRREB), the volume of sales plummeted in August, while the cost to purchase a home registered the first month-over-month increase since Feb. 2022.
JUST RELEASED! #TRREB calls for longer amortization periods and more flexible stress test in the latest #MarketWatchReport🏠. Access the full report for insights on August market stats, statements from TRREB Experts & More ➡️🔗 https://t.co/jzjCtRDDz0 ⬅️ pic.twitter.com/Y4VQYwGaei— Toronto Regional Real Estate Board (@TheReal_TRREB) September 2, 2022
Home sales took a shocking year-over-year plunge as of August, falling 34.2 per cent from the previous year with 5,627 sales region-wide. The situation looks a little less worrying on a monthly basis, with August sales actually registering a month-over-month increase from July.
It's a different story with prices, which began to dip early in the year and are now showing signs of recovery.
Prices for GTA homes are cheaper across the board than this time last year, though that may soon change.
From March through July 2022, the average price of a GTA home slid by between 2.5 per cent and 3.9 per cent each month, though price growth has witnessed a resurgence since August, when prices increased by 2.1 per cent month-over-month to $1,079,500.
This marks a 0.9 per cent year-over-year increase in home prices, though the current average selling price still falls over $200K below the $1,285,129 high reached in February of 2022.
In the City of Toronto, you can expect to fork over an average of $1,031,979 to buy a home, while the 905 region's average sits even higher at $1,103,573.
Experts warn that higher borrowing costs are impacting purchaser decisions and even existing homeowners.
TRREB President Kevin Crigger is putting pressure on "the federal government to provide for greater housing affordability for existing homeowners by removing the stress test when existing mortgages are switched to a new lender, allowing for greater competition in the mortgage market."
Crigger suggests that "allowing for longer amortization periods on mortgage renewals would assist current homeowners in an inflationary environment where everyday costs have risen dramatically."
Of course, the affordability problem in the region is more complicated than just higher interest rates, and TRREB's Chief Market Analyst, Jason Mercer, speaks of the need for politicians to increase housing supply.
"The strong mayor proposal from the province coupled with the recent commitment from Toronto Mayor John Tory to expand ownership and rental housing options are examples of this. TRREB looks forward to hearing additional initiatives from candidates vying for office in the upcoming municipal elections."
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