For the second month in a row, home sales have increased across the Greater Toronto Area. The GTA real estate market had a rough start to the year. Limited availability, high prices, and tighter mortgage rules put a strain on the market. However, data shows that the summer and fall months have seen the market bounce back.
Sales this October were up 3.5% compared to October 2017. The average sale price was $807,340, up from $780,400 year-over-year. Prices also increased compared to September 2018. Sale prices were up 1% from September, a small but notable increase.
The number of sales also increased. Home sales were up 6% from last October with a total of 7,492 units sold. While the growth in sales and prices is positive, availability is still the biggest hurdle the market has to overcome. The number of properties listing in the GTA decreased compared to this time last year. There were only 14,431 new listings in October. This is a 2.7% drop from listings of last year.
Detached homes are still hard to come by, but condos were a major driving force behind the increased number of sales. A number of new condo projects are slated to be completed soon which should further increase these numbers and help alleviate the lack of supply on the market.
Overall the data is positive and showing a stabilizing GTA real estate market. Toronto Real Estate Board (TREB) President, Garry Bhaura said,
“Annual sales growth has been positive since the late spring. While the OSFI stress test and higher borrowing costs have kept sales below 2016’s record pace, many households in the Greater Toronto Area remain upbeat on home ownership as a quality long-term investment. A strong regional economy and steady population growth will continue to support the demand for housing ownership as we move into 2019.”