TORONTO -- Home prices in the Greater Toronto Area continue to rise, jumping in October by the highest rate in nearly two years.

The Toronto Real Estate Board (TREB) said the average selling price was up 5.5 per cent to $852,142 in October 2019, compared to $807,538 in October 2018 – the strongest rate of annual growth since December 2017.

"As market conditions in the GTA have steadily tightened throughout 2019, we have seen an acceleration in the annual rate of price growth," TREB said in a news release on Tuesday.

"A strong regional economy obviously fuels population growth. All of these new households need a place to live and many have the goal of purchasing a home."

"The problem is that the supply of available listings is actually dropping, resulting in tighter market conditions and accelerating price growth."

There were 8,491 reported residential sales in the GTA in October, up 14 per cent compared to October 2018, TREB said.

Detached home sales in the GTA rose 19.6 per cent with the average selling price up three per cent to $1.05 million. Condo sales were up 5.1 per cent with the average selling price up 9.6 per cent to $617,410.

TREB says the average rent for a one-bedroom apartment was up 5.8 per cent so far this year compared with last at $2,209, while rent for a two-bedroom apartment was up 4.7 per cent to $2,888.

With files from The Canadian Press