Toronto Home Sales Increased Significantly Last Month & Here's What That Means For Buyers
Despite the market's sky-high prices, the GTA managed to record a sizeable uptick in Toronto home sales last month.
According to the Toronto Regional Real Estate Board (TRREB), 5,627 homes sold in the area during August, marking a 15% increase since July, but an overall year-over-year drop of 34.2%.
The trend represents "a lesser annual rate of decline" compared to the last four months, which could help support selling prices in the months ahead.
First-time home buyers looking to invest in the GTA have faced a gauntlet this year, thanks to the MLS Home Price Index (HPI) shooting up 8.9%, and the average selling price for all home types combined rose 0.9% to $1,079,500.
The average increased slightly month-over-month. However, the HPI Composite was lower compared to July, which isn't good news for those waiting for the bubble to burst.
The report states that the contrast between the monthly spike in average home prices and a lower HPI Composite suggests a greater share of more expensive home types sold in August.
And the grass isn't any greener for present homeowners who face crushingly high mortgage rates.
Things are so bleak, that TRREB is calling on the federal government to get involved in the market and help level the playing field.
"There is room for the federal government to provide for greater housing affordability for existing homeowners by removing the stress test when existing mortgages are switched to a new lender, allowing for greater competition in the mortgage market," TRREB President Kevin Crigger said.
"Further, allowing for longer amortization periods on mortgage renewals would assist current homeowners in an inflationary environment where everyday costs have risen dramatically," he adds.
