GTA Home Sales Remain in Sellers' Market Throughout October: TREB Report
The GTA housing market continues its extended recovery, as sales and home prices surged for the eighth month in a row. While sales activity slowed down between September to October, year-over-year activity rose a robust 14%, in addition the GTA average home prices also rose 5.5+ to $852,142. The MLS Home Price Index, which measures the overall value of homes sold, also rose by 5.8% year over year - the strongest annual growth since December 2017.
Lack of Housing Supply Continues to Drive Rising Prices
According to the Toronto Real Estate Board, a number of factors are fueling rising prices, however the main reason remains a lack of new supply. The total number of listings fell 9.6% in October, widening the ever growing supply-and-demand gap and heating competition between home buyers. The current GTA real estate market can be classified as a steep sellers' market, with sales-to-new-listings ratio of 65%, up from a balanced ration of 51% one year ago.
According to TREB President Michael Collins the real estate market has a strong possibility of returning to the unsustainable price growth trends that defined the 2016 - early 2017 peak due to the growing migration and unbalance of supply-vs-demand in GTA.
Strongest Price Growth Continues in the Condo Market
As the most affordable area of the real estate market, condo unit prices rose 9.6% year-over-year to an average of $617,429, making it the sharpest increase in price growth among all housing types. The increase is almost 5% more than semi-detached houses that experienced an increase of 4.2% to $852,669, while townhouse prices rose 3.1% to $676,802 with detached homes remaining above the $1-million mark at $1,049,300, up 3%.
However, townhouses saw the greatest increase in sales at 21.3%, followed by single-family detached home sales surging 19.6% indicating a strong demand for low-rise housing at the lowest possible price point. Semi-detached houses and condos each saw sales increases of 5.9% and 5.1% respectively.