Toronto Market Update for October 2018

16 November 2018
Life and the City

  

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Toronto home sales climbed in October as new listings fell, pushing prices higher and signalling the city's real estate market is tightening. The  Toronto Real Estate Board (TREB) reported that 7,492 homes sold in the Greater Toronto Area last month, a 6% increase over October of last year. The average sale price for all types of homes climbed 3.5% on a year-over-year basis to $807,340.

The price gains came as the number of homes newly listed for sale fell 2.7% in October compared to a year ago, which means market conditions tightened somewhat last month.

The number of homes sold in the GTA has been climbing on a year-over-year basis since the late spring. TREB said tougher mortgage qualification rules and rising interest rates may have kept sales below 2016’s record pace, but many people in the region are still keen to buy.

Sales of detached homes improved in October after lagging in the second half of 2017 and early 2018. TREB said the number of detached houses sold in the GTA in October climbed 7.1% compared to last year, but the average price grew just 1% to $1,019,416.

The volume of detached home sales climbed 10.1% in the City of Toronto and 6% in the 905 region surrounding Toronto.

While the detached home market is showing signs of slow improvement, the less expensive housing categories are continuing to drive most of the price increase in the GTA.

The average sale price for condominiums, for example, climbed 7.5% to $562,523 in October compared to a year ago. Semi-detached home prices rose 6.6% to an average of $816,657 in October, while townhouse prices were up 4.1% to an average of $655,777.


Summary of significant real estate milestones for Toronto and surrounding regions in October 2018


  • 2nd lowest October sales since 2012 (7,492)

  • The ratio of sales-to-listings increased 7 points to 39.6% in October – Now in a moderate seller market territory

  • The average sale price came in at $807,340– which was up just 3.5% compared to October 2017 – Remember we got new ‘stress-test’ financing rules this past January

  • Note that this average was still 5.8% higher than 2 years ago in October 2016

  • Overall sales in the month were up 6% from one year ago

  • The GTA real estate market overall averaged the days-on-market at 24 – a fairly typical level for Toronto’s early fall market

  • Detached home sales in October 2018 with a purchase price over $2,000,000 (202) were up 9% from last year

  • It’s noticeable that first-time buyer aspirations are now shifting to a condominium lifestyle – CONDO sales took a 35.4% share of the total market

  • Downtown condo active listing numbers were lower in C01 by 9% and up in C08 by 8% from last year at this time

  • October was only the 2nd month where sales were up this year over last

  • The downtown condo days-on-market average was 15-18 days – significantly faster than the overall market

  • The ratio of sales-to-listings for condos downtown was close in both C01 (72.7%) and in C08 (61.4%) indicating an extremely strong seller’s market… a wee bit more than double the GTA overall.

  • The average sale price for downtown condominium suites is up by roughly $65,000 from October 2017

  • Building on this higher demand due to better affordability, condo appreciation in the two main downtown markets averaged 11-13% year-over-year

  • Markets in York Region and other 905 neighbourhoods have suffered the most from the market slowdown – York Region is now showing that they’re in ‘buyer market’ territory

  • Expect slight inventory and sales increases as we move through the fall market - buyers should watch for more opportunities to get the condo or house of their dreams.



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Source: TREB, The Globe & Mail