The Toronto Real Estate Board (TREB) released its monthly resale report for October 2017, announcing a dip in Greater Toronto Area (GTA) home sales for all housing types.
In total, there were 7,118 sales reported through the MLS last month, a significant decrease compared to the 9,715 sales last year during the same period.
All housing types had double digit decreases. The biggest drop was in the 905 condo market where sales declined 33% year-over year.
In the first 10 months of the year, there were 80,198 sales, compared to 99,233 during the same period in 2016. But, there are actually still signs that the fall market is looking up
“Every year we generally see a jump in sales between September and October. However, this year that increase was more pronounced than usual compared to the previous ten years,” explains TREB President Tim Syrianos. “So, while the number of transactions was still down relative to last year’s record pace, it certainly does appear that sales momentum is picking up.”
While sales were down across the board, prices were up for all housing types, except for detached homes. The average selling price of a detached home in the 905 dropped 4% year-over-year to $910,488. In the 416, the average fell 1.1% to $1,287,765.
The strongest rate of price growth was for townhomes and condos, with the average price increasing 7.4% and 21.8%, respectively. The average price was $629,507 for a townhome in October and $523,041 for a condo.
“The housing market in the GTA has been impacted by a number of policy changes at the provincial and federal levels,” says Jason Mercer, TREB’s Director of Market Analysis. “Similar to the track followed in the Greater Vancouver Area, it appears that the psychological impact of the Fair Housing Plan, including the tax on foreign buyers, is starting to unwind.”
Overall, the average selling price for October 2017 was $780,104, which is a 2.3% increase year-over-year.
“TREB will be undertaking its annual consumer polling process over the last two months of 2017,” adds Syrianos. “This polling will include research into the impact of recent and proposed government policy changes on consumer intentions to buy and sell homes in the GTA, including the impacts of the new OSFI guideline and a potential vacancy tax in the City of Toronto. In addition, TREB continues to work with different levels of government on solutions to the long-term housing supply issues in the region.”
We’re looking forward to TREB’s survey on the above items! We’re also interested to see how the new mortgage regulations and potential vacancy tax impact the new home market.