A record 8,804 homes changed hands in October according to the Toronto Real Estate Board (TREB), an all-time high for the month that all but guarantees 2015’s place as the most active year in real estate for the region.
Overall, sales in October 2015 were up 3.4 per cent compared to 2014, with condominium transactions accounting for the bulk of that growth as high-rise sales spiked by just short of 10 per cent.
On the other hand, detached homes – the priciest and arguably most coveted property type – saw far more tepid growth in the sales department with the number of transactions up by 2.4 per cent in the suburban 905 and down 12 per cent in the City of Toronto.
However, where detached homes lack in sales growth they more than make up for in price appreciation.
Prices of detached houses spiked by a whopping 12.5 per cent in Toronto and 9.2 per cent across the GTA, a marked difference from the 4.2 per cent jump experienced in Toronto’s condo market during the same time-frame. Although, it’s worth noting condos in the city’s core (MLS District C01) saw condo values increase 7.6 per cent year-over-year.
“Record sales coupled with a constrained supply of listings in many GTA neighbourhoods has underpinned very strong price growth throughout 2015,” said TREB’s Director of Market Analysis Jason Mercer, highlighting the huge role supply – or the lack thereof – has played in driving up the region’s real estate prices.
So what is the cost of purchasing property in today’s market?
The average price of a GTA home (low-rise houses and condos combined) clocked in at $630,876 – up 7.3 per cent over previous year.
In the suburban GTA (areas excluding the City of Toronto) the average detached home was priced at $734,745 in October, a 9.1 per cent year-over-year spike.
Semi-detached homes and townhouse in the region’s suburban areas sold for an average of $512,234 and $456,585 respectively.
Condos in the City of Toronto average at $406,792, solidifying their place as the only housing type that the majority of first-time buyers in the city can afford.
Plagued by an ever-tightening supply of properties, detached homes prices in the 416 remain comfortably above the million dollar mark while semis sit at $747,149. For buyers looking to opt for a single-family home lifestyle in the bound’s of Toronto, townhouses are the new-go to as an average town stands at $579,358 – close to half that of a detached home.
On future growth, industry insiders voiced some concerns that a potential increase in land-transfer tax rates across Ontario could punch a dent on sales performance in the times to come. Speaking on the matter, TREB president Mark McLean said “The Wynne government is seriously considering allowing municipalities throughout Ontario to institute a second land transfer tax on top of the existing provincial tax. Recent polling has shown that the great majority of Ontarians oppose this tax and would consider delaying a move if they were forced to bear the additional upfront cost.”
Top facts from the TREB Market Watch Report for October 2015
Average sold price of all home types in the Greater Toronto Area was $630,876, up from $587,945 from last year – marking a 7.3% spike.
•Average Condo Price: •City of Toronto: $406,792 – up 4.2%
•Overall GTA: $381,593 – up 3.9%
•Average Detached Home Price: •City of Toronto: $1,071,394 – up 12.5%
•Overall GTA: $823,177 – up 9.2%
•Average Semi – Detached Home Price: •City of Toronto: $747,149 – up 10.0%
•Overall GTA: $609,203 – up 11.6%
•Average Townhouse Price: •City of Toronto: $579,358 – up 11.2%
•Overall GTA: $487,524– up 9.8%
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