By: Zoocasa
Toronto’s housing market is slowly recovering but still has not reached the peak levels seen in 2016 and 2017. The Toronto Real Estate Board (TREB) in its September report announced that sales jumped 22% year over year to 7,825 transactions, but are still far below the 9,800 transactions recorded in September 2016.
The drop is likely due to the provincial government and federal bank regulator imposing a series of regulations, specifically meant to chill the market — in which it somewhat succeeded. Although sales dropped, prices, especially those at the cheaper end of the market, continue to rise. But expensive detached homes, such as houses for sale in North York and Oakville houses for sale, saw a correction. Prices for those kinds of single-family homes remain mostly flat.
This September, however, prices for all market types across the Greater Toronto Area did in fact rise — 4.1% for detached houses to $1,050,421 and 4.2% for condos to $595,014. The 905 in particular saw an upswing compared to the 416. While prices for single-family homes rose just 1.2% in the 416 to $1,360,623, they rose 4.5% to $946,256 in the 905. Similarly, while condos rose just 3.3% in the City of Toronto to $636,817, they rose an incredible 9.2% in the 905 to $497,403. It’s unclear why activity in the 905, which was hit far harder by the stress test and Fair Housing Plan, jumped this Fall.
The average selling price for all properties was up 5.8% to $843,115 — the biggest jump seen in 2019.
TREB expects prices to continue their recovery, as new housing supply, already tight, shrinks further. New listings are down by 1.9% year over year to 15,611. Active listings are also down, 14.1% to 17,254.
“We have experienced multiple months this year wherein the annual rate of sales growth outpaced the annual rate of new listings growth, resulting in the overall number of active listings at month-end being well-below last year’s levels. This speaks to tightening market conditions and an accelerating annual rate of price growth,” TREB reports.
For more information on Toronto’s September housing market, check out the infographic below:
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