For the third month in a row, home sales in the Toronto Region broke a new monthly record.
The latest data from the Toronto Regional Real Estate Board (TRREB) shows that with 11,083 homes changing hands, sales across the GTA hit a new record for September; an increase of 42% year-over-year (y-o-y). The average home price grew 14% y-o-y to $960,772.
“Improving economic conditions and extremely low borrowing costs sustained record-level sales in September, as we continued to account for the substantial amount of pent-up demand that resulted from the spring downturn. Further improvements in the economy, including job growth, would support strong home sales moving forward. However, it will be important to monitor the trajectory of COVID-19 cases, the related government policy response, and the impact on jobs and consumer confidence,” said Lisa Patel, President at TRREB.
Home Prices Hit New Record; Durham, Peel and Halton Remain in Sellers’ Market Territory
According to Jason Mercer, TRREB’s Chief Market Analyst, “With competition between buyers increasing noticeably, double-digit year-over-year price growth was commonplace throughout the region in September, resulting in the overall average selling price reaching a new record.”
The average home price across the Toronto Region grew 14% y-o-y to hit $960,772 in September. In terms of sales activity, in a continuation of a trend we’ve witnessed throughout the summer, low-rise, freehold housing outside the City of Toronto continued to drive sales growth across the region. With new listings unable to keep up with demand, several regions exhibited tight competition conditions.
For instance, Halton Region experienced a staggering 74% increase in home sales, with 1,164 transactions taking place in September. Despite 1,631 listings hitting the market in September – a 17% increase in new listings y-o-y – Halton Region remained in sellers’ market territory, with a sales-to-new-listings ratio (SNLR) of 71%. A sellers’ market is one where demand and supply conditions favour sellers, and where buyers face more competition over fewer available homes. It’s worth noting that housing competition in Halton Region is much more fierce this year compared to 2019, when the market was balanced with an SNLR of 48%. With current market conditions in the region, home prices trended up by 20% to $1,087,859.
In York Region, home prices increased 9% to $1,066,380, whereas sales increased 60% y-o-y. However, with new listings rising 24% y-o-y, there was sufficient supply to mean demand in the region, creating the conditions for balanced housing competition with a SNLR of 53%.
In Peel Region, home prices grew 18% to $904,963 in September. New listings also grew significantly – rising 35% annually to 3,810. There was more than enough demand to meet this supply, with sales increasing 45% y-o-y across the Peel Region, and 2,363 homes being sold. As such, Peel Region also reflected sellers’ market conditions, with a SNLR of 62%, which made conditions slightly more competitive for buyers this year than they were in 2019 when the SNLR was 58%.
In Durham region, home sales shot up 56% y-o-y in September, with 1,492 homes being sold. New listings grew just 2% in the region to 1,873 for all home types, and fell 11% to 1,237 for detached homes. With demand outstripping supply, the Durham Region experienced strong sellers’ market conditions with a SNLR of 80%, meaning buyers faced stiff competition for available listings.
Just like the rest of the region, the City of Toronto also experienced price and sales growth, albeit at a slower pace. Home sales grew 19% y-o-y, with 3,555 transactions taking place during the month of September. Semi-detached properties noted the fastest sales incline at 49% y-o-y growth and 421 properties being sold. Detached property sales also grew quickly, with a 28% annual increase and 1,161 sales. In terms of housing competition, the City of Toronto remained in balanced market territory, with a SNLR of 41%. Home prices in the region grew steadily by 12% to $1,022,051.
City of Toronto Condo Sales Record Slowest Growth Compared to All Other Toronto Regions
The City of Toronto was the only region with single-digit condo apartment sales growth – with 1,549 condos sold, marking a 7% sales increase y-o-y compared to 14% for the Toronto Region as a whole. Comparatively, all other Toronto Region markets noted strong double-digit growth in condo apartment sales, with York Region leading the pack with a whopping 73% annual increase in condo apartment sales, followed by Halton Region (36%), Peel Region (31%), and Durham Region (25%).
In the condo-townhouse segment, sales grew 43% y-o-y for the Toronto Region as a whole. In Halton Region, condo townhouse sales grew an impressive 96% y-o-y, followed by a 90% increase in York Region. Durham Region and Peel Region also noted strong condo townhouse sales increases at 76% and 38% respectively. Comparatively, in the City of Toronto, condo townhouse sales growth was much more muted, with sales growth in the low double digits, at 13% y-o-y.
Check out the infographics below to see how sales and average prices changed by home type for TRREB and the City of Toronto in July.
Note: Comments and stats highlighting the Toronto Region as a whole are a reference to the areas covered by TRREB, which include: Durham Region, Halton Region, Peel Region, York Region, Toronto, Dufferin County and Simcoe County.
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