Suburban Toronto skyline by Nayuki
Toronto Real Estate Board’s latest market report shows a 11.5 per cent increase in home sales in the GTA area compared to last year. The MLS system recorded a record number of 9,786 sales in October.
TREB’s President Larry Cerqua addressed the need to wait and observe as the new mortgage rules take hold in Toronto:
The record pace of GTA home sales continued in October, with strong growth observed throughout the month. As we move through November and December, we will be watching the sales and listings trends closely, in light of the recent policy changes announced by the Federal Minister of Finance. TREB will once again be conducting consumer survey work, in order to report on home buying intentions for 2017.
Yet again, the condominium segment recorded the biggest increase with 22.2 per cent. Detached houses were up by 10 per cent and town houses by 8 per cent. No change was recorded in sales of semi-detached houses. Average price was $762,975 which makes it 21.1 per cent higher than in October 2015. The number of active listings has dropped by 34.7 per cent this year, which points to the fact that Toronto has a serious problem with listings’ supply.
TREB’s Director of Market Analysis Jason Mercer says the prices will continue to grow until some new inventory comes to the market:
New listings were up slightly in October compared to last year, but not nearly enough to offset the strong sales growth. This meant that seller’s market conditions continued to prevail as buyers of all home types experienced intense competition in the marketplace. Until we experience sustained relief in the supply of listings, the potential for strong annual rates of price growth will persist,especially in the low-rise market segments.