There were 8,082 home sales in the Greater Toronto Area in June 2018, an increase of 2.4 per cent year-over-year. After preliminary seasonal adjustment, sales were also up by 17.6 per cent compared to May 2018, continuing the trend of somewhat unstable month-over-month changes over the past year as home buyers reacted to policy changes impacting the housing market.

“Home ownership has proven to be a positive long-term investment. After some adjustment to the Fair Housing Plan, the new Office of the Superintendent of Financial Institutions (OFSI) stress test requirement and generally higher borrowing costs, home buyers are starting to move back into the market, with sales trending up from last year’s lows,” said Garry Bhaura, new TREB president, in a press release. “Market conditions appear to be tightening, with sales accounting for a greater share of listings, as new listings have dropped compared to last year.”

The average selling price climbed two per cent year-over-year to $807,871 in June 2018. After preliminary seasonal adjustment, the average selling price was also up by 3.3 per cent on a month-over-month basis between May and June 2018. The MLS Home Price Index (HPI) fell 4.8 per cent year-over-year, but remained relatively level compared to May 2018. The difference in the year-over-year rates of change between the average price and the MLS HPI was most likely partly due to a change in the mix of properties sold in June 2018 compared to the previous year, with more low-rise homes sold in June 2018.

“The expectation is to see improvement in sales over the next year. Over the same period, however, it is likely that issues surrounding the supply of listings will persist,” added Jason Mercer, TREB’s director of market analysis and service channels. “This suggests that competition between buyers could increase, exerting increased upward pressure on home prices. With a new provincial government in place and municipal elections on the horizon, housing supply should be top-of-mind for policy makers.”