GTA home prices remain flat in August while new listings fall

Homes are seen in this aerial photograph taken above Toronto, Ont. Photo by James MacDonald/Bloomberg files

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Toronto-area home prices remained virtually unchanged in August, continuing a months-long trend of averages hovering around $930,000, while the number of properties coming to the market fell sharply from a year ago.

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According to the Toronto Regional Real Estate Board (TRREB), the seasonally adjusted MLS Home Price Index benchmark was $931,200 in August, down just 0.1 per cent from July. The benchmark has now held near the $930,000-mark since March, after falling from $944,200 in January.

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The board reported 5,057 sales through its MLS system in August, down 2.1 per cent from a year earlier, while new listings dropped considerably, down 14.1 per cent to 12,075.

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The notable gap between sales and listings may be a signal for buyers, TRREB suggested, as fewer homes available for sale could increase competition and eventually put renewed upward pressure on prices.

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So far, however, prices remain below where they were a year ago. The benchmark price was down 4.5 per cent year over year in August, narrowing slightly from a 4.6 per cent decline in July. The average selling price was $993,410, down 2.7 per cent from a year earlier.

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On a seasonally adjusted basis, sales declined 1.3 per cent from July, while the average selling price increased 1.1 per cent to $1,028,817.

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“Ownership housing in the GTA has remained relatively affordable over the past year, with average prices dipping and mortgage rates remaining somewhat flat,” TRREB chief information officer Jason Mercer said.

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Mercer said recent economic and job-creation figures have been positive, but concerns about the U.S. trade war and the possibility of higher inflation and rising borrowing costs continue to weigh on some prospective buyers.

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Price weakness also remains uneven across housing types. Condo benchmark prices were down 7.08 per cent from a year ago in August, compared with declines of 4.50 per cent for detached homes and 4.40 per cent for attached homes.

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A sustained drop in listings could put buyers under more pressure to make a move, TRREB said.

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“If inventory tightens and home prices begin to rise, some buyers may face a trade-off between waiting for greater economic certainty and purchasing before prices move higher,” said board president, Daniel Steinfeld.

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