November 7, 2018 | Market Update
There were a reported 7,492 homes sales in the GTA in October, and the average selling price was $807,340. Sales and prices were both up year-over-year, which is a positive sign. That said, there were only 14,431 new listings for the month—a drop of 2.7 per cent from October of last year.
Sales and prices on the rise
October home sales in the GTA were up 6 per cent from the same month of last year. Prices also grew by a significant 3.5 per cent year-over-year. These numbers reflect the ongoing market rebound that began in the spring, though they don’t tell the whole story.
Month-over-month, the picture looks slightly different. On a preliminary seasonally adjusted basis, sales were down 1 per cent from September of this year. The average home price was up 1 per cent. Seasonal adjustment allows analysts to look beyond regularly-occurring market patterns in order to see underlying trends.
On the whole, October’s numbers are encouraging. That said, housing supply is down from the same month of last year. Current inventory levels combined with strong, ongoing demand suggest that the GTA market continues to tighten.
Condos commanding higher prices
Year-over-year, detached home sales grew by 10 per cent in Toronto and 6 per cent in other parts of the GTA. Prices increased by a more modest (but still promising) 1.4 per cent from the same month of last year. These numbers reflect the fact that a growing of buyers see home ownership as a viable option (and a good investment). While detached homes are generating their fair share of interest, it’s the condo market that saw the greatest price growth.
The average condo price in Toronto for October was $603,153, reflecting an 8.6 per cent jump year-over-year. For the rest of the GTA, the average price was $461,013—an increase of 5.9 per cent. On the whole, the region saw condo prices rise by an impressive 7.5 per cent from October of 2017.
Demand remains strong
Recent growth should be considered in light of the cooling measures introduced to the market last year. The OSFI mortgage stress test and higher borrowing costs have kept home sales and prices below the high levels they rose to in 2016. This fact makes October’s numbers all the more promising.
“What we’ve been seeing, especially for the city of Toronto, our population has kept the demand so strong that those factors haven’t had as much of a significant impact as they could’ve in other markets,” said Realtor Tom Storey (of Royal LePage Signature Realty).
While demand is up, supply continues to be an issue in the GTA. “Annual sales growth has outstripped annual growth in new listings for the last five months,” said Jason Mercer, Toronto Real Estate Board (TREB) Director of Market Analysis. Mercer also noted that policymakers should be looking at ways to increase supply, especially when it comes to medium density housing.
Looking to achieve a better understanding of the market? We interpret the data as it becomes available to determine how it will impact buyers and sellers. Get in touch to learn how our up-to-the-minute knowledge can help you meet your real estate goals.