- Home sales in GTA up 11.5% to 9,768 transactions in October 2016.
- Average home price jumped 21.1% to record $762,975.
- New listings showed first year-over-year increase since Feb 2016.
Following a 23.5% year-over-year increase in August and 21.5% in September, GTA home sales posted another record 9,768 sales in October 2016, as reported by the Toronto Real Estate Board.
Sales were 20% higher than the seven year average for the month of October from 2010 to 2016.
This is an 11.5% increase compared to October 2015 and the third consecutive month of double digit sales growth since July. However, the rate of growth was lower in October than in August and September.
The largest sales growth was in condominium as strong demands for condo apartments continued. Compared to October 2015, condo sales in October went up 22.2% to 2,702 transactions. This is after a 31.6% increase in August and 26.7% in September.
Detached home sales increased 10% year-over-year, down from 22.2% in August and 19.9% in September. Growth was driven predominantly by transactions in the 905 regions surrounding Toronto.
Average Home Price
Compared to October 2015, average home price in GTA increased by 21.1% in October to record $762,975, after a 20.4% increase in September. This is the 10th consecutive month of double digit annual price increase since December 2015.
Double digit price increases were experienced for all major home types and across all GTA regions.
Average price of detached homes reached $1,034,077, while for condo apartments $429,407.
The MLS Home Price Index (HPI), which allows for a more apple-to-apple comparison, was up by a lesser rate of 19.7% compared to October 2015.
Total number of new listings in October was 13,377, in line with the historical trend for the month of October.
New listings edged up slightly in October compared to last year, driven by a 6.9% increase in the 905 regions. This is the first year-over-year increase in new listings in GTA since February 2016.
New listings of detached homes increased 7.5% year-over-year, driven by a 27.5% increase in the York region.
This has reversed a 7-month down trend in the new listings of detached homes and helped push up total new listings of low-rise homes to the highest level since 2012 for the month of October.
However, contrary to low-rise homes, new listings of condos were down 12.1% compared to October 2015, reaching the lowest level since 2010 for the month of October.
In the City of Toronto, new listings were down 8% in October, as the down trend that began in early 2016 continued. This is the 8th consecutive month of year-over-year decline of new listings in the City of Toronto.
Other Market Indicators
Sales-To-New Listings Ratio in October was the highest for the month of October, indicating a very strong seller’s market.
Average Days On Market (DOM) was 16 days, the lowest for the month of October, indicating a very hot and fast moving market.
Selling Price to List Price Ratio was 103%, meaning, on average, homes were sold for 103% of list price. Again, this indicates a very heated housing market in the GTA.
In summary, GTA housing market remained heated in October. Both home sales and average home price continued their double digit growth trends. Demand for homes continued to surpass available supply by a wide margin.
Although new listings had grown slightly in October, especially in the low-rise home segment, they were not nearly enough to offset the strong sales growth. As a result, either sustained increases in new listings or reduced demands are needed for the GTA housing market to return to a more balanced state.
The Federal Government’s recent announcement to tighten mortgage rules and income tax loopholes for foreign home buyers was designed to cool housing demand in Canada. It remains to be seen how these newly announced measures will affect the housing market in Toronto.