Both home sales and prices are stable this September and slightly higher year over year in the Greater Toronto Housing market.
The Toronto Real Estate Board (TREB) recently announced that sales were up 1.9 per cent to 6,455 transactions while the average selling price for September 2018 was up 2.9 per cent year over year to $796,786.
“It is healthy to see sales and prices in many areas across the Greater Toronto Area up a bit, compared to last year’s lows,” said TREB president Garry Bhaura.
Toronto Condos See Strongest Price Growth
Those numbers, however, mask significant variances in market types, with sales of less expensive properties like condos far outpacing more expensive housing, like single-family homes.
Toronto condo prices grew 10 per cent to $570,140 while detached homes slipped 0.6 per cent to of $1,008,361. Semi-detached homes grew 5 per cent to $792,353 and townhouses increased 4 per cent to $634,314.
Condos also experienced the strongest price growth of any home type, though the segment had the slowest sales, dipping almost 4 per cent. Meanwhile, townhouses saw the strongest sales growth, increasing 8.5 per cent. Semi-detached sales were up 4 per cent and detached housing sales up 2 per cent. (Check out the exact details in the infographic below).
“Generally speaking, annual rates of price growth have been stronger for higher density home types in 2018, including condominium apartments, townhouses and semi-detached houses,” said Jason Mercer, TREB’s director of market analysis.
“In many neighbourhoods, these home types provide more affordable home ownership options. This is why a policy focus on increasing mid-density housing options throughout the GTA is important.”
Home Affordability Remains Steep in City of Toronto
An affordability crisis in Toronto has likely driven up housing costs in other parts of Ontario, which has captured an overflow of Toronto residents. London, Ontario real estate, for example, is up a whopping 21 per cent year-over-year to $386,520, and up 57.9 per cent compared to five years ago, according to the Canadian Real Estate Association.
Even Ottawa real estate, which is largely independent of the Toronto market, seeing as it’s far outside a commutable distance and it’s economy is largely reliant on the public sector, has increased in price. The average sale price of a residential property sold in September was $449,613, an increase of 7.9 per cent over September 2017.
As long as interest rates remain reasonable, and economic fundamentals strong, stable price growth should continue in Toronto and other communities in Ontario.
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