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August home sales up from last year: TRREB

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The head of the Toronto Regional Real Estate Board says sales this August during the pandemic were up 40.3% over the same period last year.

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That amounts to 10,775 residential home sales.

The Board says sales were up year over year for all home types in Toronto and the GTA, with the main drivers of the growth coming from detached and semi-detached houses and townhouses.

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Condo sales were also up on an annual basis for the second straight month, but to a lesser degree.

“Increased demand for ownership housing has been based on improving economic conditions, in terms of monthly GDP growth and job creation, and the continuation of very low borrowing costs,” said Lisa Patel, head of the TRREB.

“In addition, fewer households have chosen to go on vacation as a result of COVID-19 and instead have remained in the GTA and been active in the housing market, satisfying pent-up demand from the spring.”

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Both the number of new listings entered into TRREB’s MLS® System during the month and the number of active listings at the end of the August 2020 were up on a year-over-year basis.

While new listings were up strongly for all home types, growth in new condo listings far outstripped growth in the other market segments.

Competition between buyers was especially strong for low-rise home types, lead to higher yearly rates of price growth.

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“However, with growth in condominium apartment listings well-outstripping condo sales growth, condo market conditions were comparatively more balanced, which was reflected in a slower pace of price growth in that segment,” said Jason Mercer, TRREB’s Chief Market Analyst.

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The Home Price Index Composite Benchmark was up by 11.1% in Aug. 2020 compared to Aug. 2019.

The overall average selling price was up by 20.1% to $951,404 over that same time period.

“With demand for ownership housing continuing to recover, it will be important for policymakers to remain focused on the longer-term goal of bringing more housing supply online, especially as we return to a normal cycle of immigration,” said TREEB CEO John DiMichele.

“We have to focus on supply both in the aggregate and in terms of a greater diversity of home types.  This will be key in addressing housing affordability in the GTA moving forward and keeping the region competitive in attracting businesses and talent from around the world.”

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