Fall Forecast Strong as GTA Confidence Slowly Returns.
While activity isn’t as flurried as the same time last year, the remainder of the fall season bodes well for the GTA housing market, according to October statistics recently released by the Toronto Real Estate Board (TREB).
There were 2,597 fewer sales this October than the same time last year, but the anticipated annual jump in sales between September and October was more pronounced this year than in the last 10 years – up nearly 12%. “While the number of transactions was still down relative to last year’s record pace, it certainly does appear that sales momentum is picking up,” says TREB president Tim Syrianos.
Prices rose 2.3% year over year, to an average October selling price of $780,104 (though that percentage is down from the 2.6% rise reported last month and the 3% rise reported in August).
The greatest price increases came from condos in the 416 and 905 areas, which increased year over year by 20.9% and 21.0%, respectively. There’s good news to be found in the number of listings, too: compared with the same time period in 2016, new listings for all home types are up 11.8%.
Are buyers and sellers regaining confidence? That could be. Pointing to policy changes that have impacted the GTA housing market, Jason Mercer, TREB’s director of market analysis, notes that “it appears that the psychological impact of the Fair Housing Plan, including the tax on foreign buyers, is starting to unwind.”
Mercury Rising: Condo’s Remain a Hot Topic this Fall.
Echoing last month’s report, GTA condominium apartments are faring better than their detached, semi-detached, and townhouse counterparts.
The October housing market statistics released by the Toronto Real Estate Board (TREB) reveal that across the region, condo prices are up 21.8% from last year. This price growth was stronger than any other housing type.
And while GTA condo sales dropped by 24.9% from October 2016, the decline was less severe than the 29.8% drop recorded for detached homes.
Prices are increasing, but new inventory isn’t being added at the same rate as detached homes, proving that demand for condos is still strong. TREB reported 7,849 new detached home listings in October, but only 3,359 for condo apartments.
Reporting on condo market conditions for Q3 2017 at the end of October, TREB president Tim Syrianos noted that “The condominium apartment market segment has exhibited the strongest average rates of price growth since the spring, relative to other major market segments. Competition between buyers remains strong, as listings remain below last year’s very constrained levels.”
What’s the fall forecast for the rest of the GTA housing market? While October sales of all types were down by 2,597 compared to October 2016, the yearly September-to-October surge was more pronounced than in past years, at an increase of about 12%.
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