The Toronto real estate market has successfully recovered from its previous slump and is doing very well at the moment, going by several reports and studies. These indicate that the month of October, 2019 witnessed stellar growth once again after a good performance in the month of September this year as well.
The housing sector in Toronto did well last month and prices increased to the highest thresholds in the last couple of years in a scenario where supply levels remained on the tighter side.
Toronto market performance in October 2019
The benchmark price in Toronto’s real estate market, increased by a handsome 5.8% to touch $810,900. The year-on-year growth figures were quite impressive indeed to say the least. The TREB (Toronto Real Estate Board) has already confirmed this figure indicating that this is the highest such increase since the month of December in 2017 and takes it close to approximately $4,300 of the record established in mid-2017 itself.
TREB has already stated that there has been a tightening of overall market conditions in the Greater Toronto Area (GTA) all throughout this year. As a result, annual price growth has naturally accelerated. The organization has also stated that healthier growth in prices is also forecasted in the near future in case growth in listings is outstripped by growth in sales, thereby creating higher competition amongst buyers.
Key Points Worth Noting:
- Sales figures increased by 14% to touch 8,491 units (year-on-year) and the highest gains were made by townhouses and detached homes.
- New listings came down by 9.6% while active listings came down by 19% indicating rapid clearing of inventory due to higher sales volumes.
- The Toronto housing market has adjusted smoothly to factors like stricter regulations like the mortgage stress test and higher taxes for keeping debt and prices in check.
- Demand continues going up in the city amidst lower rates of interest and shorter supply levels.
- Even sales of homes went up by 45% in Vancouver for October, 2019 as compared to the same period last year while benchmark prices came down by 6.4% though which is in marked contrast to Toronto’s stellar growth.
- For Toronto, monthly sales figures came down by 2.9% as compared to September 2019 on a seasonally adjusted basis.
- Average home prices increased to $852,145 which indicates 5.5% of growth which is the highest such threshold for 2019 itself.
- Detached home prices went up to $1,049,300 which is lower than the peak levels of approximately $921,000 that were established in April, 2017.
- GTA (Greater Toronto Area) real estate figures have also been impressive for October, 2019.
- TREB figures clearly indicate growing home prices on the back of demand and near-normal sales volumes in tandem with lower inventory levels.
- The benchmark price touched $897,200 for the City of Toronto, indicating growth of 6.1% (year-on-year). Both annual and monthly price increases were higher than October, 2018.
- The benchmark price went up by $5,400 from the preceding month, indicating the highest monthly increase in a very long time.
- The median sales price remained lower as compared to the benchmark level with $730,000 being confirmed by TREB for last month. This is higher on a year-on-year basis by 6.88%.
- Median sales prices touched $751,000 in the City of Toronto, indicating year-on-year growth of 7.43%.
- 50% of sales throughout the TREB zone were lower than the usual home price by a whopping 9.97%.
- In the City of Toronto, more than 50% of homes were sold for prices that were lower by 16.29% as compared to the usual prices.
- GTA sales figures touched 8,491 units last month, indicating growth of 13.3% as compared to October, 2018. The City of Toronto accounted for 3,295 units out of this tally, indicating 9.7% of growth (year-on-year).
- The sales figures are 0.25% lower as compared to the 5-year median level for October.
- 13,050 new listings were recorded by TREB and 4,980 listings were accounted for by the City of Toronto.
A few other crucial market trends
15,375 active listings were recorded by TREB (Toronto Real Estate Board) for October, 2019 which indicates 18.8% of de-growth as compared to October, 2018. This indicates lower inventory and higher sales figures alike. The decline in inventory was higher in the entire 905 zone and inventory levels are lower over the last 2 years as well.
Sales figures are going up in the GTA and prices are also increasing in turn. Inventory levels are dropping rapidly on the back of soaring demand from buyers. The shift in pricing is largely influenced by the kind of home that is desired by the buyer which is clearly reflected in the fluctuating median selling price. With over-valuation being eased out a little in the market, home buying has naturally increased in Toronto from Q1 2019 itself. The second quarter of 2019 witnessed average home pricing growing by 0.8% (year-on-year) overall and disposable income threshold also witnessed growth of 0.5%.
The first-time home buyer count in the entire GTA increased by 3.7% as compared to 1.9% across the entire nation. This covers people between the ages of 25 and 34. Supply levels are the crucial factor for real estate in Toronto and this will keep impacting rental and ownership segments alike as per experts. TREB and other key real estate stakeholders have naturally taken heart from the impressive sales and price results in the Greater Toronto Area (GTA) for October, 2019. The current market momentum should continue in the near future as per experts.