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October Market Update

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. 

 

Market Watch GTA Real Estate Update October 2019

 

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. 

 

 

 

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