July 19, 2019    中文(简体)   
April 2019

TORONTO, ONTARIO, May 6, 2019 – Toronto Real Estate Board President Garry Bhaura announced that
Greater Toronto Area REALTORS® reported a substantial year-over-year increase in home sales in April
2019. The number of residential transactions jumped by 16.8 per cent to 9,042 compared to 7,744 in April
2018. On a preliminary seasonally adjusted basis, sales were up 11.3 per cent compared to March 2019.


New listings were also up year-over-year by eight per cent. However, the annual growth rate for new listings
was much lower than that reported for sales. This suggests that market conditions continued to tighten
which points toward an acceleration in price growth.


“The strong year-over-year growth in sales is obviously a good news story and likely represents some catchup
from a slow start to the year. TREB’s sales outlook for 2019 anticipates an increase relative to 2018. It
should be noted, however, that growth in new listings is not keeping pace with sales. This points to the
ongoing housing supply issue in the GTA. In this regard TREB welcomes the provincial government’s
Housing Supply Action Plan announced last week to reduce red tape and improve the mix of housing types.
TREB provided input on the Plan through submissions and participation on working groups,” said Mr.
Bhaura.


The year-over-year rate of price growth generally edged up in April relative to the first three months of the
year. The MLS® HPI Composite benchmark was up by 3.2 per cent – the highest rate of growth in more
than a year. The average selling price was up by 1.9 per cent to $820,148, representing the strongest
annual rate of growth so far in 2019. On a preliminary seasonally adjusted basis, the average selling price
was also up by 1.1 per cent compared to March 2019.


Price growth continued to be driven by the condominium apartment segment and higher-density low-rise
segments. The average price for detached houses dipped year-over-year, specifically in regions surrounding
the City of Toronto. The detached market segment, with the highest price point on average, has arguably
been hardest hit by measures such as the OSFI stress test.


“While sales were up year-over-year in April, it is important to note that they remain well-below April levels
for much of the past decade. Many potential home buyers arguably remain on the sidelines as they
reassess their options in light of the OSFI-mandated two percentage point stress test on mortgages. Longer
term borrowing costs have trended lower this year and the outlook for short-term rates, for which the Bank
of Canada holds the lever, is flat to down this year. Unfortunately, against this backdrop, we have seen no
movement toward flexibility in the OSFI stress test,” said Jason Mercer, TREB’s Chief Market Analyst.

 
Posted by: Jackie
Share

The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license. The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA.

Royal LePage Real Estate Services Ltd., Brokerage, Independently Owned & Operated