Toronto

Toronto Real Estate Prices Made The 2nd Largest Monthly October Jump In Over 10 Years

Greater Toronto real estate is picking up once again, especially the price momentum. Toronto Real Estate Board (TREB) numbers show prices made a larger than usual climb in October. Rising prices came as sales returned to normal volumes, and inventory dropped. Just in time for the Federal government to throw stimulus into the market.

Greater Toronto Real Estate Prices Are Up Over 5%

The price of a typical Greater Toronto home made a sharp increase, according to the benchmark. TREB reported a benchmark price of $810,900 in October, up 5.8% from last year. The City of Toronto benchmark reached $897,200, up 6.1% from the same month last year. Both the monthly and 12-month increases were stronger than typical last month.

Greater Toronto Benchmark Price

The price of a “typical” composite home across Greater Toronto.

Source: TREB. Better Dwelling.

The monthly increase is the strongest in years, with annual gains accelerating. The benchmark increased $5,400 from the month before. That makes the monthly gain the second largest for October in over 10 years. It’s second only to October 2016, which printed nearly twice the increase. The annual pace of growth for both TREB and the City were both larger than the month before, as well.

Greater Toronto Benchmark Price Change

The annual percent change of TREB’s benchmark price for all home types.

Source: TREB. Better Dwelling.

The median sales price was lower than the benchmark… a lot lower than the benchmark. TREB reported a median sale price of $730,000 in October, up 6.88% from last year. The City of Toronto median sale price was $751,000, up 7.43% from last year. If you’re keeping track, that means 50% of sales across TREB were 9.97% below the price of a “typical” home. In the City of Toronto, over half of the homes sold at a price 16.29% below the “typical” home price. The median sale price isn’t adjusted for quality or mix, but is less opaque than the benchmark. It’s also a more common metric used by foreign buyers.

The average sale price made a similar increase to the benchmark. TREB reported an average sale price of $852,142 in October, up 5.54% from last year. The City of Toronto reached $925,498, up 6.39% from last year. Average prices aren’t adjusted for quality or size, and is fairly volatile. However, it is still a good indicator for dollar flow – which is higher than last year.

Greater Toronto Average Sale Price Change

The annual percent change of the average sale price of all homes.

Source: TREB, Better Dwelling.

Greater Toronto Real Estate Sales Climb Over 13%

Greater Toronto real estate sales made a large climb, bringing volumes back to normal. TREB reported 8,491 sales in October, up 13.3% from the same month last year. The City of Toronto represented 3,295 of those sales, up 9.7% from last year. The number of sales is a very large increase from last year, but is 0.25% below the 5-year median for the month. The “boom” is more like a back-to-normal increase.

Greater Toronto October Home Sales

The total home sales across TREB by year, for the month of October.

Source: TREB, Better Dwelling.

Toronto Real Estate Inventory Falls Over 12%

The number of new listings for Greater Toronto real estate fell last month. TREB reported 13,050 new listings in October, down 9.6% from last year. The City of Toronto represented 4,980 of those listings, down 5.89% from last year. Fewer new listings helped to drag down total inventory available for sale.

Greater Toronto Sales To New Listings

The number newly listed units per month, in contrast to sales.

Source: TREB, Better Dwelling.

The total inventory available for sale, or active listings, made a drop. TREB reported 15,375 active listings in October, down 18.8% from last year. The City of Toronto represented 4,980 of the listings, a decline of 12.1% from last year. Both regions had large drops for active listings, but the decline in the 905 was much larger. Also worth a note – inventory is lower than the past couple of years, but not even close to 2016 levels.

Greater Toronto October Active Listings

The total of active home listings across TREB by year, for the month of October.

Source: TREB, Better Dwelling.

Greater Toronto real estate prices are higher, sales are rising, and inventory dropping. The price movement is very dependent on the type of home sought, as seen with the median sale price. Sales are just under typical volumes, with the government pledging buyer stimulus. Inventory is falling, but not even close to the scare levels seen just a few years ago.

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11 Comments

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  • Reply
    Trader Jim 2 weeks ago

    US real estate also going investor crazy. Flippers are borrowing the most 2006. Something in the low rate water I guess.

    https://www.elliottwave.com/Economy/Raising-a-Red-Flag-for-US-Real-Estate

  • Reply
    Herry 2 weeks ago

    GREED, GREED F ing GREED !!!!!!!!!!!!!!!! I will never visit this shxthole. EVER !!!!!!!!!!!!!!!!!

  • Reply
    Jupiter 2 weeks ago

    HongKong Trash are coming to Canada and buying up real estate. Time for the government to implement a predatory real estate tax where all foreigner owned property (even 1%) will be taxed annually at 5% estimated house value. All none primary residential real estate are taxed the same.

    We are going to have riots like in HongKong soon with these prices.

    • Reply
      Joey 2 weeks ago

      Without investors nothing will get build. Sorry pal you need them.

      • Reply
        SMH 2 weeks ago

        You’re right! To hell with families owning and living in homes. Let’s exclusively build for investors so the units can sit empty and wreak havoc on our crumbling economy… oh wait, we’re already doing that.

        • Reply
          Joey 2 weeks ago

          Less than 1% vacancy so not as many empty homes as you think.

          There has to some financial incentive otherwise no will invest to build.

          Building new homes is expensive in big cities as everyone wants to live in them. Land is scarce and extremely expensive.

          It’s a big risk for investors to build so there better be high returns otherwise why would anyone invest or build….. People don’t lift a finger without getting paid fairly.

  • Reply
    LoL 2 weeks ago

    No Canadian’s are to docile, they’ll just bend over and take it.then say thank you.

  • Reply
    Greg 2 weeks ago

    Looks like a textbook case of a “soft landing” in Toronto after that explosive upside move in 2016/17… yes, lets hope inventory levels don’t fall to those 2016 that ignited the market again. Slow and steady is better.

    But it is interesting to note, while Condo construction remains elevated — the number of SF homes under construction in the GTA is down 50% in the last two years.

  • Reply
    Herry 2 weeks ago

    Yep, I won’t be visiting this pathetic shxthole anytime soon. Or ever…

    • Reply
      zz 2 weeks ago

      why do you even care… you don’t live here. the real estate price doesn’t affect you…
      london and NYC are really expensive too. It sucks to be a poor schmuck living there but visiting is fun

    • Reply
      Joe 1 week ago

      Man – the comments on this site
      Hong king trash??
      Canadians bending over ?
      Canada is one of the greatest countries to live in and it’s cheap – investors will be coming here in droves and you can’t stop it –
      On a world scale we are extremely cheap – have you been to London or new York or other major cities in Europe – it’s all expensive
      This site just promotes fear mongering and I’m sure the owners of this site don’t even own real estate –
      I just wonder how many people have waiting for that crash and did not buy and possibly can’t get in ??
      Lastly – everyone needs a place to live – you either rent or own that’s it

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