Hover or click over a community to see the local sale prices from October.
The Toronto real estate market shows signs of a healthy fall market as year-over-year home sales rise 6% and the average price climbs 3.5%. TREB warns of a tightening market as Toronto faces a lack of supply and continued demand.
Leading this y-o-y price growth is the condo and semi-detached markets, especially in the “416”, with average prices up 8.6% and 8.1% respectively. Showing slower growth are the townhomes and detached markets up 2.9% and 1.4% respectively.
Of note this month is the semi-detached market, as it has really seen an increase in sales: up 17% y-o-y leading to that 8.1% price growth. Anecdotally, this past month we’ve noticed an increase in competition for homes listed under $1M, many in multiple offer scenarios. Those getting the most offers are modestly renovated properties below the $1M mark. Likely leading this trend are first-time home buyers or new families looking for a bit more space many of them hoping to get into the market before interest rates rise again.
On that note, the Bank of Canada just announced another interest rate increase on October 24th, 2018 taking it to 1.75%. These rising rates coupled with last year’s Stress Test have lead to slower sales when compared to the record pace that was set back in 2016.
Despite the tumultuous year, Torontonians continue to show positive sentiments towards home ownership. Toronto Real Estate Board President Garry Bhaura states, “A strong regional economy and steady population growth will continue to support the demand for housing ownership as we move into 2019,” and warns of evidence pointing towards a market that, “could tighten as a lack of supply remains a problem while demand is strong.”
With new listings in October 2018 down 2.7% and sales up 6% y-o-y market conditions have become tighter. This underpins the fact that listings supply will remain an issue in Toronto and the GTA. A strong regional economy — we list all the factors here — and a steady population growth will continue to support the demand for housing ownership as we head into 2019.