Corinne McCabe , Broker

The Toronto Real Estate Board just released the market stats for October and we are seeing year-over-year increases in home sales and average sale prices. The average selling price for the GTA in October was $807,340 up by 3.5% compared to $780,400 in October 2017. For the City of Toronto the average sale price for October was $869,870 compared to $819,124 in October 2017 up by 6.3%!

“Annual sales growth has been positive since the late spring. While the stress test and higher borrowing costs have kept sales below 2016’s record pace, many households in the GTA remain upbeat on home ownership as a quality long-term investment.  strong regional economy and steady population growth will continue to support the demand for housing ownership as we move into 2O19” (TREB).

Even though listings were up in October 4.8% compared to October 2017, the freehold market last week saw 21% fewer listings from the week before. The net result is more sales happening at or above the list price which is 61% of properties sold. We will certainly witness a decline in resale listings over the next 2 months as we cruise into the winter season, but it remains unclear if sales will decline.

The condominium sector stats for October were also stellar. The average condo price came in at $603,153 up 8.7% from October 2017 which was $555,004. Last week new condos coming to market dropped 20% from the previous week but sales increased by 8% in the downtown core and units selling at or above the list price are still at a staggering 50% of units sold!

Inquiring minds want to know if rising interest rates are having an impact on housing activity in Toronto? Frankly we are as curious as the next guy but as it stands now, we have not seen much change. Overall activity in the 416 continues to be strong as demonstrated by multiple offers and rising prices across every category of shelter. Generally, mortgage rates tend to rise when the economy is growing, the job market is healthy and wages are rising. With two months left in 2018 there is still plenty of transactions on the horizon and our research shows there are plenty of buyers waiting for the perfect home.

The freehold sector did not see much change in the number of new listings last week. Tight supply has been the ongoing story for most of the year. The number of recorded sales however was only down by 11%. Homes trading at or above the list price is at a very respectable 53%, well within the range we have seen for a strong fall market.

The condo sector is experiencing similar traits and did not see an increase in new listings last week with only 293 listed. Though sales were down by 22%, overall sales activity remains brisk with 48% of condos selling at or above the asking price. The hot spot of the week was the $400k - $700k segment in the central core where more than 50% of the units sold at or above the list price.