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The board’s home price index composite benchmark, which is intended to smooth out variations and accounts for typical homes throughout TREB’s market area, was up by 14.3 per cent on a year-over-year basis in August.

“The fact (the index) outstripped average price growth, points to fewer high-end home sales this year compared to last,” said the board, in a statement. It noted price growth is being driven by “semi-detached, townhouse and condominium apartment market segments that continued to experience high single-digit or double-digit year-over-year average price increases.”

Sales activity continues to be way down from a year ago with the 6,357 transactions last month, off more than 34.8 per cent from a year ago. However, new listings in August dropped 6.7 per cent from a year ago and at 11,523, were at their lowest level for August since 2010.

Detached home sales, believed to be bear the most impact from provincial changes, were off 41.6 per cent from a year ago while prices were up 0.3 per cent during the period.

The condo sector remains the hottest in the GTA with average sale prices up 21.4 per cent from a year ago to $507,841 in August. Condo sales were still off 28 per cent during the period.

“The relationship between sales and listings in the marketplace today suggests a balanced market. If current conditions are sustained over the coming months, we would expect to see year-over-year price growth normalize slightly above the rate of inflation,” said Jason Mercer, director of market analysis for TREB. “However, if some buyers move from the sidelines back into the marketplace, as TREB consumer research suggests may happen, an acceleration in price growth could result if listings remain at current levels.”

Financial Post

gmarr@postmedia.com

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