SEPTEMBER SALES UP 22%
The Toronto Real Estate Board has released the numbers for September, and the GTA housing market is continuing its strong pace. Following a very active summer, the market has shown no signs of a slowdown with 7,825 sales reported for the month of September. This represents a 22% increase in volume compared to the same period last year. Total sales for 2019 are now at 67,957, up 13.2% year-over-year.
The average price of all sales in September was $843,115, up 5.8% from a year ago. Lower interest rates and rising prices in the condo sector are fuelling demand for low-rise housing options. The MLS Home Price Index Composite Benchmark, which illustrates inflation in the market, was up 5.2% and increased for all major housing categories, most notably for condo apartments which were up 8%.
Price growth was highest in the townhome market at +6.8% (5.7% in the 416), while detached homes saw the greatest gain in unit sales at +28.9% (+37.9% in the 416). Sales of townhomes rose 21.8% (+33.2% in the 416) and semi-detached home sales increased by 15.1% (+12.3% in the 416). Despite the shrinking price gap between high- and low-rise homes, total condo sales were up 15.9% (+13.5% in the 416).
New listings declined by 1.9% from last September, well short of the pace of sales growth. There is currently a 2.2-month supply in the GTA. With reduced choice in the market and an increased demand, we can continue to expect upward pressure on prices in the face of strong sellers’ market conditions.
The GTA housing market has been on a tear since March. We expect this pace to continue in October and November as buyers and sellers look to manage their real estate needs in advance of the holiday season.
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