Substantial year-over-year increase in April sales
9,042 home sales were reported through the Toronto Real Estate Board MLS in April 2019, a jump of 16.8 percent compared to April 2018. The average selling price for all home types combined was up by 1.9 percent over the same period – the strongest annual rate of growth so far in 2019. Condos continue to trend as a positive driver of year-over-year price growth. However, active listings for the month dropped below levels seen in April 2018 and new listings are not keeping pace with sales – an environment that supports pricing acceleration. This, in combination with the OSFI mortgage stress test, represents a formidable challenge to the first time home buyer, the root of the real estate market. A report issued May 3rd by Canada Mortgage and Housing Corp. citing that there has been “improved alignment overall between house prices and housing market fundamentals” since the stress test was implemented, can be seen as an indicator of the government’s intent to keep the stress test in place for the foreseeable future.