In another sign that the Toronto region’s housing market is enjoying a solid recovery, the home building industry is reporting 73 per cent more sales year over year in September, which is six per cent above the 10-year average.
The $1.08-million benchmark price of new single-family homes, a category that includes townhouses, detached and semi-detached houses, fell about $2,200 or 3.4 per cent over the same period, according to the Building Industry and Land Development Association (BILD).
Single family homes sales rose 283 per cent, year over year, to 954 homes — just five per cent below the decade’s average.
It was the 11th consecutive month these sales increased.
After a slight year-over-year drop in August, condo prices continued their upward trend, rising 6.5 per cent year over year in September to $841,159.
The 2,107 condo and stacked town home sales was 39 per cent higher than in September 2018 and 12 per cent above the 10-year average.
The statistics, tracked by Altus Group, were released Friday, a day after the Canada Mortgage and Housing Corp.’s annual forecast predicted a rebound in housing activity through 2021.
BILD CEO David Wilkes said a 283-per-cent, year-over-year increase in single-family home sales in September is another sign that buyers are at last stepping off the sidelines after a policy-induced lag of new mortgage rules and measures such as a foreign buyers’ tax.
“The continued favourable interest rates are facilitating those purchases,” he said. “There’s been some moderation in pricing that has made things more affordable.”
While the gap between condo and single-family home prices is shrinking, the continued growth of the Toronto-area population means the demand for homes continues to exceed supply, continuing upward pressure on housing prices.
“The degree of improvement in both new homes sales and new project openings this year has been contained … and there are no signs of overheating in the market,” said Altus executive vice-president Patricia Arsenault.
Prices are based on the average asking prices for homes available to purchase, not selling prices.
More than a third of single-family home sales — 352 out of the total of 954 — were sold in Halton Region. Toronto continues to dominate the region’s condo market. More than half, or 1,294 of the 2,107 condos sold in September, were in the city.
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