October Home Sales Climb 6%; Prices Rise 3.5%!
Across the Greater Toronto Area, home sales in October climbed as new listings fell, pushing home prices higher and signaling a tighter real estate market.
Sales For All Home Types Across The G.T.A. Rose 6.0%
Home sales In October 2018 were led higher by the semi-detached and detached market segments. Semi-detached homes sales experienced an impressive double digit gain, up 12.7% year over year. Detached homes rose 7.1%; condominiums rose 5.5% and townhomes finished the month with a marginal gain of 0.8% versus October 2017.
The Average Sale Price For All Home Types Combined Rose 3.5%
“Price growth continued to be driven by the condominium apartment and higher density low-rise market segments”, says TREB in their latest market release. Condominiums rose 7.5% to an average selling price of $562,523; semi-detached homes were up 6.6% to an average selling price $816,657; townhomes gained 4.1% to an average selling price of $655,777 and detached homes ended the month up 1.0% at an average selling price of $1,019,416.
“Annual sales growth has been positive since the late spring. While the OSFI stress test and higher borrowing costs have kept sales below 2016’s record pace, many households in the Greater Toronto Area remain upbeat on home ownership as a quality long-term investment. A strong regional economy and steady population growth will continue to support the demand for housing ownership as we move into 2019,” said Garry Bhaura, President of the Toronto Real Estate Board in their latest market release.
G.T.A. Market Conditions Continued To Tighten
New listings were down -2.7% and active listings, the number of homes available for sale, were virtually flat to last year, up a marginal 0.4% compared to 2017. With sales up and new listings down year over year in October, market conditions became tighter. “Annual sales growth has outstripped annual growth in new listings for the last five months, underpinning the fact that listings supply remains an issue in the Greater Toronto Area,” said Jason Mercer, TREB’s Director of Market Analysis.
The 905 Regions
In the 905 regions, home sales growth was strong across all market segments with the exception of townhomes. Condominiums showed the strongest performance of all home types, up 12.8% compared to October 2017. Semi-detached homes were up 9.7%, followed by detached homes, up 6.0% year over year. Townhomes ended the month up 2.2% over October 2017.
Home price growth in the 905 regions was driven by the higher density segments of the market. Condominiums rose 5.9% to an average selling price of $461,013. Townhomes rose 4.9% to an average selling price of $621,564. Semi-detached homes were up 3.4% to an average selling price of $659,622. Detached homes ended October up 0.4% to an average selling price of $914,179.
The Go Forward Forecast For Fall 2018
Royal LePage “expects the fourth quarter to be more robust than normal, as some of that pent up demand caused by the implementation of the mortgage stress test starts to kick in. People have adjusted to the changes,” says Phil Soper, President and CEO of Royal LePage.
Our team has experienced strong market activity throughout the year, with homes frequently sold in multiple offer scenarios over the asking price. Well-presented homes in high demand neighbourhoods continue to sell quickly while other properties take longer to find a buyer – the sign of a healthy market.
If buying or selling a home is in your plans, reach out by text or email at david@dodicteam.com or give us a call any time at 416-606-2158. We’ll walk you step by step through a strategy that meets your unique goals and close the deal that is right for you. Give us a call today!
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