Population growth a major driver in Toronto housing activity – TREB

Population growth a major driver in Toronto housing activity – TREB

Population growth a major driver in Toronto housing activity – TREB

Earlier this week, Toronto Real Estate Board president Garry Bhaura attributed the city’s September sales numbers to the steadily growing number of individuals and families settling down in the region, along with a healthy influx of immigrants and skilled workers.

“As the GTA population continues to grow, the real challenge in the housing market will be supply rather than demand,” Bhaura said, as quoted by The Canadian Press.

The last census conducted by Statistics Canada found that the city’s population posted an annual growth rate of 0.86% from 2011 to 2016, expanding by a total of 4.3% over that time frame.

New home listings in Toronto are getting snapped up by eager buyers at a frantic pace despite a noticeable increase in prices over the past year, according to the TREB.

The Board’s latest data showed that home sales activity in September grew by 1.9% on a year-over-year basis, up to 6,455 transactions. Meanwhile, new for-sale listings fell by 3.1% compared to the same month last year, down to 15,920.

The average selling price rose by 2.9%, up to $796,786.

Read more: Recent GTA activity shows gains in almost all housing types

“With sales up year-over-year and new listings down, market conditions became tighter. Many buyers may have found it more difficult to find a home meeting their needs,” the TREB noted in its data release.

In a note to investors, BMO senior economist Sal Guatieri assured that the GTA housing segment “continues to stabilize” despite considerable shrinkage earlier this year in the wake of tighter federal mortgage regulations.

“The market should remain on a steady footing in coming months as healthy demographic demand tempers the downward pull from rising interest rates.”

1 Comments
  • Andrew 2018-10-05 10:23:17 AM
    We don't trust a person with conflict of interests...They keep manipulating the market to paint a bullish view even when the actual market status is not bullish, for example, the last report Usually September have much higher sales and prices than Aug but NOT THIS YEAR...monthly basis, sales dropped from last month (Yes Sep have weaker sales than Aug, Sep sales was 6,455 and Aug was 6,839, that's 6% drop MOM!!!. The average selling price, after preliminary seasonal adjustment, edged lower by 0.5 per cent month-over-month (2nd decline in row mom). The average detached house price dropped 0.6 per cent YOY (we didn't recover at all from last year )....keep in mind that last year we saw sales 35 percent down from the year before and last month sales is the same but with much HIGHER active listings ( not mentioned by TREB news summary but its up 5.6 percent) and HIGHER avg days on the market by 8.3 percent !!! ( also not mentioned by the news to the media on purpose..) .meaning HIGHER MOI this year...looks we will have a very cold winter for housing market ..especially with another hike in 3 weeks and another one in Jan...the promised recovery never happened Also look at the prices in the market watch report for diff areas, other than condos and some town houses, YOY and even MOM (for most cities) prices still in negative and of course York region is the worst, I will add how much we lost from the the peak so far
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