The monthly numbers from the Toronto Real Estate Board (TREB) are out and they’re showing that the GTA sales will not be stopped.
Mark McLean, TREB board president, reported 8,804 home sales last month, the highest recorded number of sales ever in the GTA. As a comparison, there were 8,512 sales last October. And, surprisingly, this is a result of 7.5% less homes on the market this October over last October.
The average home price also went up. For both condos and houses combined, the average in the GTA was up 7.3% year-over-year, at $630,876; last year, the average home price was $587,945. This could be a direct result of the lack of postings this year, driving prices up for eager homebuyers.
Jason Mercer, TREB’s director of market analysis, said “even if we do see a greater supply of low-rise listings in the marketplace over the next year, market conditions will remain tight enough to see continued price growth well-above the rate of inflation.”
Basically, this means that prices will likely continue to rise, meaning it’s still a good time to sell your current home. Also, with prices still rising, it’s also not a bad time to buy.
Interestingly, the only category of home that took a sales dive this year were detached houses in the 416, with nearly 10% less sales this October year-over-year. Homeowners are likely holding onto what is seen as the most valuable of properties until they feel they can max out their earning potential and sell when prices are even higher. That said, this could be risky, as prices can fluctuate at any time, with little notice to clean those gutters.
Condos saw the most consistent sale increase, with 9.7% across both the 416 and 905. Because the prices of detached and semi-detached homes are continuing to rise, many buyers are moving to condos to have the opportunity to own while saving money.
Average condo prices rose 3–4% over last year, at $406,792 and $318,317 downtown and in the burbs respectively.
With sales higher than ever before, there could be over 100,000 homes changing hands this year, the highest number in recorded history. The highest before 2015 was 2007—just before the recession—at 93,193 homes sold.
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