The Toronto Regional Real Estate Board (TRREB) has published the sales data for September. With 4,642 home sales reported, transactions were down 7.1% from last year, as the effects of higher borrowing costs and inflation continue to impact the housing market.
Housing supply was up significantly in September following a jump in new listings. The 16,258 new homes listed for sale represent a 44.1% year-over-year increase. Active listings were up 39.8% to 18,912. Housing supply now sits at 4.07 months heading into October.
Seeking more strategic insights about home ownership? Consider these other posts from our blog.
- An Essential Guide to Property Values
- The Strategic Value of a Starter Home
- Why You Should Think Twice About Working With a Discount Agent
Interestingly, despite the significant rise in inventory, prices were also up on both a year-over-year and a month-over-month basis. The average selling price of $1,119,428 represents a 3.0% increase from 2022 and a 3.4% gain from August. The MLS Home Price Index (HPI) Composite Benchmark, which helps measure inflation in the market, was up 2.41% year-over-year (+1.35% in Toronto).
The average sale took place in 20 days on market at 100% of the listing price, with 70.6% of all transactions sitting between $600,000 and $1,500,000. Sales of homes over $2,000,000 accounted for 7.1% of the sales mix, up from 5.6% in August.
Looking at prices by housing type: detached homes sold for an average of $1,440,786, a year-over-year increase of 5.2% and a month-over-month increase of 1.7%. The average price for semi-detached homes was $1,094,074 (+4.9%/+2.4%), townhomes sold on average for $941,695 (+4.5%/+0.6%), and the average price of condos was $707,065 (-3.3% /+0.2%).
Higher borrowing costs, inflation, and ongoing uncertainty around the Bank of Canada’s decision-making direction have led to a more balanced market than we have seen in previous years. The number of listings has increased noticeably relative to sales. Long-term, the outlook for home ownership demand remains strong due to record population growth. However, in the short-term, buyers should benefit from increased negotiating power.
Thinking about selling your West Toronto or Etobicoke home? Consider these blog posts.
- How to Sell Your Home Without Losing Money
- How Agent Performance Impacts Sellers
- Should You Renovate Before You Sell?
If you are planning to buy or sell real estate, please speak with our team. We are here to help you stay informed. Christensen Real Estate Group has been in business for over four decades and we bring a wealth of experience to uncertain real estate markets.
For over 40 years, our clients have trusted us to minimize risk, offer unbiased opinions, and ensure their best interests are served. Contact us today to talk about your needs. Email us at info@christensengroup.ca or call at 416-722-4723.
*Image provided by Harvey Kalles Real Estate Ltd., Brokerage
