It's no surprise that housing prices are high in the GTA. But an increase in the number of sales is now raising concerns about those prices. The Toronto Real Estate Board (TREB) is reporting that GTA house sales have risen in the GTA and are up 24.3 percent in the month of July, compared with this time 12 months ago.
Due to the rise in sales, prices were also on the climb because, with fewer properties on the market, more people will be looking to buy the same properties. That can drive up prices.
In its report released today, TREB noted the importance of an increase in sales.
"Broadly speaking, increased competition between buyers for available properties has resulted in relatively strong price growth above the rate of inflation for semi-detached houses, townhouses, and condominium apartments," said Jason Mercer, chief market analyst for TREB, in a press release.
This report seems to add more fuel to the argument that housing is unaffordable in Toronto and the GTA in general.
According to TREB, the average selling price of a property in the GTA last month was over $800,000 which is an increase of 3.2 percent from the previous year.
The average price for a fully detached house in Toronto? A whopping $1.23 million. While that number is down from previous figures, it is still extremely expensive.
"Fortunately, policymakers have acknowledged the housing supply issue and are working toward solutions,” said John DiMichele, TREB CEO, in a press release.
Even though there are reports that the housing bubble will burst soon, it hasn't happened yet and the high prices in the GTA are sticking around.