February 6, 2020 / 1:52 PM / 5 months ago

TABLE-Toronto home supply shortage to drive sales, price growth in 2020 - TREB

    By Nichola Saminather
    TORONTO, Feb 6 (Reuters) - Toronto's housing market is expected to get
tighter with transactions, driven by robust economic conditions, strong
population growth and low borrowing costs boost demand, set to outpace growth in
available listings, the Toronto Real Estate Board said on Thursday. 
    Toronto had total home sales of 4,581 in January, up 15.4% from a year ago,
and the average price jumped 12.3% to C$839,363, as listings dropped 17.1%.
Detached homes led the increase in sales, climbing 23.3%, while the price gain
was boosted by the 15.1% rise from condos. 
    "Without relief on the housing supply front, the pace of price growth will
continue to ramp up," Jason Mercer, TREB's chief market analyst, said in an
emailed statement. "Policy makers need to understand that demand side
initiatives on their own will only have a temporary impact on the market." 
    One such initiative was the mortgage stress test, introduced at the
beginning of 2018, whose effect temporarily dampened demand, particularly for
higher-priced detached homes. 
    "It is clear that many buyers who were on the sidelines due to the
(mortgage) stress test are moving back into the market, driving very strong
year-over-year sales growth in the detached segment," Mercer said. 
                  January      December    January 2017  YR/YR PCT CHANGE
 TOTAL SALES       4,581       4,399       3,968          15.4%
 AVERAGE PRICE  C$839,363    C$837,788     C$747,175      12.3%
 NEW LISTINGS     7,836        3,531       9,456         -17.1
 After preliminary seasonal adjustment
                  January     MTH/MTH PCT CHANGE
 SALES            7,929          4.8%
 AVERAGE PRICE  C$870,905       -0.3%
 Sales by type of property
                         January       YR/YR PCT CHANGE
 DETACHED           2,074              23.3%
 SEMI-DETACHED        351               5.1%
 TOWNHOUSE            782              15.9%
 CONDO APARTMENT    1,335               8.3%
 Average price by type of property
                         January       YR/YR PCT CHANGE
 DETACHED           C$1,038,247        10.5%
 SEMI-DETACHED        C$792,326         6.5%
 TOWNHOUSE            C$693,845         8.0%
 CONDO APARTMENT      C$630,047        15.1%

 (Editing by Bernadette Baum)
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