TRREB’s September GTA Data.

Summers in Canada are very precious and are cherished equally by all. Even the real estate market sort of takes a break (sort of), with less sellers list their homes and less buyers looking at them.

The weather, kids not being in school, opportunity to take some time off and other factors set the tone in the market and are the reason why the Canadian market follows a cyclical pattern.

This is a real thing in real estate. Another real thing is pent-up demand.

Market slowdowns in the real estate market here tend to be followed by a sharp spike in activity. If you remember, a few weeks back our team at Zoocasa has predicted a sharp increase in prices between August and September by about 5%. This prediction came true – prices increased by more that 5% and that happened in just one month.

Last month turned out to be the third hottest September ever recorded, the average prices increased by 6.1% from August. The amount of buyers that came back to market heavily outweighed the supply of listed homes and the 9,046 transactions that took place in September represented a decrease of -18.3% year over year. The average home price in the GTA went up by 19.1% and is now sitting at $1,136,280.

A total of 13,483 homes were listed on the market in September. This is a sharp contrast to last year’s September representing a -34% decrease.

Kevin Crigger, the TRREB President said that ‘lack of housing supply and choice have reached a critical level’. According to him, we are past the point in time where policies that artificially suppress demand are not effective anymore and we need a collaborative efforts between all levels of government to cool the market.

Prices Increased by Double Digits Across Toronto Region

I mentioned that every market lull is usually followed by a sharp increase in activity. This doesn’t solely relate to the market as a whole, but also to it’s individual segments.

Condos experienced an unprecedented decrease in demand during the pandemic. But since the Covid-19 vaccines have started to make their way into the country, the demand for condos have since rebounded and now it is the only asset type that have experienced price growth in the GTA.

Prices Are Growing Faster Outside the City of Toronto

Over the course of the pandemic, the steepest price growth has been recorded outside the City of Toronto. This pattern seems to have carried over into September as well:

Simcoe and Durham regions both have experienced a price growth of 32% year over year. Sales in Simcoe dropped by -39% and in Durham – by -33%.

Peel Region’s prices increased by 20% and sales dropped by -23%.

Halton Region saw prices jump by 15% and sales decreased by -28%.

York Region continues to be the priciest place in all of GTA. It saw an increase of 27% in prices and a drop in sales by -17%.

Dufferin county experienced a decline in sales by 42% (with only 47 transactions taking place) and a price increase of 15%.

If you are looking to purchase a property this year, don’t let the lack of inventory scare you off buying. Let’s hop on a call today so and I will be happy to explain the strategies I utilize for my buyer clients when I look for homes with them.