Staying on pace with seasonal trends, home sales in the Greater Toronto Area (GTA) slowed in June, trickling down from May and below March's peak. However, home prices continued their upward trajectory, increasing by double digits compared to a year before.
According to the Toronto Regional Real Estate Board (TRREB), there were 11,106 sales recorded in June, a 28.5% year-over-year increase, though this is down roughly 7% from May’s 11,951 transactions.
While price growth in June continued to be driven by the low-rise segments of the market, it's interesting to note is that growth was the strongest in the condo segment, both in Toronto and in the surrounding suburbs. Condos sold for 8.3% more in June compared to the same month last year, well-outstripping inflation, the board said.
The 905 areas saw the most significant gain of 15.9% to an average selling price of $611,610. In comparison, Toronto saw a 6.7% price growth, to an average of $717,466.
This coincides with the average price of a home -- including all houses and condos -- rising 17% to $1,089,536 last month, while the Home Price Index (HPI) composite benchmark was up by 19.9% year-over-year.
Detached houses in the 905 areas around Toronto continued to lead the growth, rising 29.4% year-over-year to an average price of $1,329,873. In Toronto, detached homes sold for 11.5% more than a year ago, selling for an average of $1,699,881.
“We have seen market activity transition from a record pace to a robust pace over the last three months. While this could provide some relief for homebuyers in the near term, a resumption of population growth based on immigration is only months away," said TRREB President Kevin Crigger.
"While the primary focus of policymakers has been artificially curbing demand, the only long-term solution to affordability is increasing supply to accommodate perpetual housing needs in a growing region,” said Crigger.
In all major market segments, the board says year-over-year growth in sales well-outpaced growth in new listings over the same period, pointing to the continuation of tight market conditions characterized by competition between buyers and strong price growth. On a month-over-month basis, both actual and seasonally adjusted average prices edged lower in June.