Toronto prices rebound, but sales dip

Rising supply offset by 35% decline

TORONTO • The average price of a home in Toronto climbed almost six per cent from August, but sales across the region continued to sputter compared to a year ago.

The Toronto Real Estate Board said Wednesday the average sale price for a home sold in September in the Greater Toronto Area was $775,546, up from the average of $732,292 a month earlier.

The board said its sale price was up 2.6 per cent from a year ago, but the MLS Home Price Index composite benchmark rose 12.2 per cent on a year-over-year basis.

“A key reason for the difference in annual growth rates between the average price and the MLS HPI composite is the fact that detached homes — the most expensive market segment on average — accounted for a smaller share of overall transactions this year compared to last,” the board said.

There were 6,379 sales through September 2017, down 35 per cent from a year earlier. August sales across the GTA were 6,357.

Supply continues to rise in the market with new listings climbing to 16,469 in September, up by 9.4 per cent year-over-year.

“The improvement in listings in September compared to a year earlier suggests that homeowners are anticipating an uptick in sales activity as we move through the fall,” Tim Syrianos, president of the board, said in a release.

“Consumer polling undertaken for TREB in the spring suggested that buying intentions over the next year remain strong. As we move through the fourth quarter we could see some buyers moving off the sidelines, taking advantage of a bettersupplied marketplace.”

Royal Bank senior economist Robert Hogue estimated the Toronto market has had two straight months of balanced demand-supply conditions and that the downward price pressures seen earlier this year have eased. However, he added that it doesn’t mean that prices are about to rebound.

“Rising interest rates, poor affordability and the possibility of further policy tightening will generate significant headwinds for local buyers,” Hogue wrote in a report.

Prices in the condo market continue to appear to be strong with the average one selling for $520,411 across the GTA in September, a 23.2 per cent increase from a year ago. The average condominium sold for $507,841 in August. September condo sales were off 27.5 per cent from a year ago.

The average detached home sold for $1,015,067 in the GTA in September, flat from a year ago. The average detached home sold for $968,494 in the GTA in August.