TRREB’s October GTA Data.

Fall has brought along colder, grim weather and days are getting shorter. It’s been a long year for myself and my colleagues in the industry. Lots has happened and many deals were made. Majority of my peers are making an attempt at booking a vacation. The break is much needed.

But duty calls and with us being the children of the market, we must abide by its rules. And the market has completely different plans for us this season. In fact, this was the second highest level for October in TRREB history. 9,783 homes have changed hands, which is a 8.1% month-over-month increase. Still it’s a -6.9% drop from last year.

The listings were still quite low, signifying a supply-demand imbalance that we are oh-so-used-to. 11,740 new listings saw light this October, which is a -34.1% decrease year-over-year and a -12.9% drop since last month.

To measure the market conditions in real estate, we usually look at the sales-to-new-listings ratio. When the ratio is between 40-60% – it’s a balanced market. Anything below 40% or above 60% is a buyers’ or a seller’s market, respectively.

This October the SNLR was 83%, in other words deep into the sellers’ market.

Price for GTA and Toronto Home Sales Is Up Almost 20%

Given where we are on the supply-demand scale, it comes as no surprise that the real estate prices would be pushed higher. Year over year, the overall prices across the GTA and Toronto home sales have increased by 19.3%. The new average price across all asset types is now $1,155,345.

“Demand isn’t going away. And that’s why all three levels of government need to focus on supply”, stated TRREB President Kevin Crigger in the board’s release. It is true, there is a severe shortage of housing that is only about to shrink once the immigration and foreign investment resume.

The biggest increases in home prices among all home-types is usually detached homes. This October the average detached home in the GTA has reached around 1.5 million. The average townhouse is nearing 1 million.

Interestingly, condos continued to experience a buying frenzy, as more people are drawn back to the urban areas. Condos represent the most affordable entry point to the market and the demand for this asset type has surged since last year, resulting in 28% increase in sales and 13% increase in prices.