House prices in Toronto continue to surge as would-be buyers struggle with a lack of supply in a red-hot real estate market, according to a report released today by the Toronto Real Estate Board (TREB).
The average price of a home in the Toronto area — which includes the regions of Peel, Halton, York and Durham, as well as Simcoe County — jumped by almost 17 per cent this June compared to the same month last year.
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An average home in Canada's largest city cost $746,546 in June, up from $639,309 in June 2015 — a jump of 16.8 per cent.
That average encompasses all home types, included detached houses, attached houses and condos.
And though the number of sales also rose across the region — 12,794 this June compared to 11,905 last June — the number of new listings is down 3.8 per cent.
'Uphill battle' for buyers
That lack of supply is a key factor driving prices, according to TREB president Larry Cerqua.
"Demand is at a record level," he wrote in the report. "Would-be home buyers continue to face an uphill battle against a constrained supply of listings."
Cerqua's also said TREB will conduct further research into "issues affecting lack of supply" as "the federal, provincial and local levels of government discuss housing policy in the coming months."
News of the sale price increase comes as governments ponder how to cool hot housing markets, particularly in Vancouver and Toronto.
Vancouver Mayor Gregor Robertson has proposed a tax on vacant homes in that city, where skyrocketing housing prices have been driven in part by foreign buyers who using the homes as an investment. And last month the federal government last month announced a working group to monitor the housing market and issues around affordability.
Report: Toronto Housing Prices
Report: Toronto Housing Prices (PDF KB)
Report: Toronto Housing Prices (Text KB)