Toronto-area home sale price jumps 16.8% in June

House prices in Toronto continue to surge as would-be buyers strugglewith a lack of supply in ared-hot real estate market, according to a report released today bythe Toronto Real Estate Board (TREB).

The average price of a home in theToronto area which includes the regions of Peel,Halton, York andDurham, as well as Simcoe Countyjumped by almost 17 per cent this June compared to the same monthlast year.

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An average home inCanada's largest city cost$746,546in June, up from$639,309 in June 2015a jump of 16.8 per cent.

Thataverage 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 thenumber of new listings is down 3.8 per cent.

'Uphill battle' for buyers

That lack of supplyis a keyfactor driving prices, according to TREBpresidentLarry 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'salsosaid TREB will conduct furtherresearch 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 increasecomes 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.