Toronto real estate is still producing a less than stellar trend in the detached market. Numbers from the Toronto Real Estate Board (TREB) show that prices are still up for detached homes in October 2017. However, price growth is tapering, sales are down, and inventory is higher.
Detached Prices Are Still Up, But Tapering Quickly
The price of a detached home is softer than it’s been in a while. The detached benchmark price across all TREB regions is now $921,200, a 5.43% increase from the same time last year. In the 416, this is now $1,088,200, a 3.9% increase from the same time last year. The tapering gains aren’t just apparent in benchmark prices.
The average sale price of a detached home dipped into negative territory on an annual basis. The average price across all TREB regions dipped to $1,008,207, a 2.5% decrease compared to the same time last year. In the City of Toronto that price is now $1,287,765, a decline of 1.1% from last year. Detached homes in the 905 fell to an average of $910,488, a 4% decline from the same time last year. Remember, average sale prices aren’t helpful for determining a price for a home. It’s helpful for determining dollar volume, and upgrade flows.
Toronto Detached Listings Are Higher Than Last Year
The city’s detached inventory is swelling compared to recent history. New detached listings in Toronto hit 7,849, a 15.99% increase from the same time last year. This is the highest it’s been for an October in at least 5 years. Active listings for detached units, which are the total detached units available for sale, hit 11,004 across TREB. This represents a whopping 111% increase compared to last October. Last October’s inventory numbers were touted as notoriously low, but it’s hard to argue this increase isn’t substantial.
Toronto Detached Sales Are Lower Than Last Year
Detached sales are softer than they were this time last year as well. Detached sales across TREB reached 3,135 sales, a 30.32% decrease from last October. This is the lowest number of detached sales for October in over five years. In the City of Toronto that number dropped to 812 detached units, down 25%. The 905 saw 2,323 detached sales, down 31.4% compared to last year. One positive note here is that the sales to new listings ratio is now ~40%, which is higher than last month. However, this indicator is also the lowest for an October in over 5 years.
Detached price growth is tapering, but we knew they wouldn’t be able to keep these monster gains. Some pullback is somewhat expected as the trend normalizes. Improved sales to new listings ratio did rise as seasonally expected, but was still significantly below trend for this time of year. What do you think? Is the market improving, or still in a lull? Drop your comments below.
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