The typically busy fall market in now upon us, and according to the Toronto Real Estate Board’s latest resale figures for September 2019, the season is off to a strong start.
There were 7,825 home sales in the Greater Toronto Area in September, which is 22% higher than the same period a year ago. New listings for the month dropped 1.9% with 15,611 properties coming to market.
TREB says that sales growth has outpaced new listings growth this year, so the resale market will likely be consistently tight through to the end of the year and into 2020. When demand remains strong and supply continues to fall short, it could fuel price growth even more.
“Demand for ownership housing increased throughout the spring and summer of 2019 compared to the very slow pace of sales experienced in 2018,” says TREB President Michael Collins. “That being said, many first-time buyers are still experiencing difficulty finding an affordable home. Federal parties vying for seats in the October election have pledged to alleviate affordability issues hampering first-time buyers with a variety of policy proposals. While these demand-side proposals are important, it is also important that all levels of government remain focused on promoting a sustainable supply of different housing types moving forward.”
The greatest sales growth was in the detached home segment, increasing 28.9% year-over-year with 3,616 sold in September. The average price of a detached home in the GTA went up 4.1% to $1,050,421.
“It is interesting to note that market conditions for detached homes have tightened over the past year,” says Jason Mercer, TREB’s Chief Market Analyst. “In many of the regions surrounding the City of Toronto, detached price growth was above the rate of inflation on an annual basis. Consumer polling conducted for TREB over the past few years has pointed out that many intending home buyers are still focused on ground-oriented housing. This points to the need for a greater diversity of housing types to bridge the gap between detached houses and condominium apartments.”
Condo sales increased 15.9% with 2,071 sold in September, following detached homes with the second most sales of all the housing segments. The average price of a condo unit in the GTA jumped 4.2% to $595,013.
The greatest price growth in the GTA was seen in the townhome segment, increasing 6.8% to $677,387. There were 1,298 townhome sales in September, which is a 21.8% year-over-year increase.
The overall average selling price of a home in the GTA jumped 5.8% year-over-year to $843,115.
“Statistics Canada’s most recent national population estimate represented the highest twelve month population increase ever recorded,” says TREB CEO John DiMichele. “This growth was driven by immigration, of which the GTA was likely a key beneficiary due to its strong regional economy and diversity. As a result, the demand for all types of housing in the GTA – rental and ownership – will remain strong. This fact underpins the need for immediate and sustained action on housing supply.”
As new listing growth continues to fall behind sales growth, we’re eager to see how the GTA’s resale market performs throughout the rest of 2019!