Friday, November 15, 2019 / by Zifan Gao
As the cold weather approaches, the market has started to slow down. The recently released TREB October Market Watch Report shows that the year-over-year growth was lower for October than for September. However, compared to October last year, this past month still saw another double-digit increase in the number of sales.
From determining your buying or selling strategies, adjusting timelines, to setting up realistic expectations, and predicting investment outcomes, we’ve got you covered. We’ve summarized this month’s report into a bite-sized digest so that you can be better educated in Real Estate and the current market trends.
Home Sales increased by 14% year-over-year
For the 7th consecutive month, we’ve seen a double-digit increase in the number of sales. However, for the 3rd consecutive month, we’ve also seen a double-digit decrease in active listings. This trend has been escalating throughout the year and we’re seeing the market become increasingly tighter as demand continues to surpass supply.
According to TREB’s President, Michael Collins, “a strong regional economy obviously fuels population growth. All of these new households need a place to live and many have the goal of purchasing a home. The problem is that the supply of available listings is actually dropping, resulting in tighter market conditions and accelerating price growth”.
Average Price up to $852,142
The MLS® Home Price Index Composite Benchmark, which measures the overall value of homes sold, was up by 5.8% on a year-over-year basis in October 2019. This is the strongest annual rate of growth we’ve seen since December 2017.
The average selling price for all home types combined was up by 5.5%, with condo apartments up by 9.6%, followed by semi-detached homes, which were up by 4.2%. The great majority of sales were for properties between $500,000 and $799,999.
East Toronto increasingly more popular, 905 stronger than 416
The Toronto East region showed 3.17% more sales than Toronto West, perhaps due to the fact that properties in this area still go for a lower price than those in the West (3.14% cheaper). However, Central Toronto still boasts the majority of sales for the 416 region as well as the highest average price.
As far as GTA trends go, the 905 region shows the strongest sales growth, with a 17% increase in sales year-over-year (compared to the 9.47% growth year-over-year in the 416 region). However, prices in Toronto have increased 6.4% year-over-year, while the rest of the GTA saw an increase of only 5.27% year-over-year.
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