Toronto

Toronto Detached Real Estate Prices Rise The Most Since 2017

The Greater Toronto detached real estate market is buzzing once again. Toronto Real Estate Board (TREB) numbers show sales made a big jump in September. Sales volumes aren’t back to boom time levels, but the increase was enough to raise prices. Most of the gains are in the 905, which is seeing much higher price growth than the City.

Toronto Detached Real Estate Prices Rise Over 3%

The price of a “typical” detached home is on the way up once again. TREB reported a benchmark price of $946,700 in September, up 3.55% from last year. The City of Toronto benchmark reached $1,135,600 in the same month, up 2.74% over the same period. The price growth in suburbs is big, while the City is moving a little above inflation.

Toronto Detached Benchmark Price

The price of a typical detached home across the Toronto Real Estate Board, in Canadian dollars.

Source: TREB, Better Dwelling.

Detached prices have been moving faster in the 905 recently, and last month was no exception. TREB’s 3.55% detached benchmark growth is higher than the month before. It’s also the highest 12-month growth since November 2017. The City of Toronto benchmark made a slight drop from the month before. However, one month isn’t enough to say it’s reversing. Before pledging allegiance to team bull market, it’s worth noting this is only around a year of gains.

Toronto Detached Benchmark Percent Change

The 12 month percent change of a typical detached home across the Toronto Real Estate Board.

Source: TREB, Better Dwelling.

The median sale price is curiously much lower than the price of a “typical” home, these days. TREB reported a median sale price of $890,000 in September, up 5.32% from last year. The City of Toronto median sale price hit $1,080,000, up 3.27% over the same period. This means more than half of all homes in TREB sold for 5.98% below the “typical” price, and 4.89% in the City of Toronto. Substantial disconnect between the two numbers.

Toronto Detached Average Sale Price

The average sale price of a detached house in the Toronto Real Estate Board.

Source: TREB, Better Dwelling.

The average sale price for detached homes was somewhere between the other metrics. TREB reported an average sale price of $1,050,421 in September, up 4.17% from last year. The City of Toronto reached $1,360,623, up 1.36% from the same month last year. The suburbs are seeing bigger growth than the City, which is moving below inflation.

Toronto Detached Average Sale Price Change

The 12 month percent change of average sale price across across TREB.

Source: TREB, Better Dwelling.

Toronto Detached Real Estate Sales Make A Big Jump From Last Year

Detached sales made a huge jump, but mostly due to how bad numbers have been over the past few Septembers. TREB reported 3,616 sales in September, up a whopping 27.81% from last year. The City of Toronto represented 909 of those sales, up an even largeer 36.69% from last year. The City of Toronto is seeing these numbers grow much faster than the suburbs. However, these numbers are still 2012 levels of weakness. For those too young to remember those days, it wasn’t pretty.

Toronto Detached September Sales

The total number of Greater Toronto detached sales made in the month of September.

Source: TREB, Better Dwelling.

Detached Real Estate Inventory Is Falling Fast In The 905

New listings for detached real estate were almost flat. TREB reported 8,707 new listings in September, down 0.22% from last year. The City of Toronto represents 2,269 of the listings, up 12.94% from last year. New listings in the suburbs are dropping, but the City’s surge is propping up total levels.

Toronto Detached Sales Vs. New Listings

The total number of detached sales, compared to the number of new detached listings per month.

Source: TREB, Better Dwelling.

New listings coming in flat and sales rising substantially, took out a lot of inventory. TREB reported 10,863 active listings in September, down 9.79% from last year. The City of Toronto represents 2,272 of those sales, down 1.94% from last year. The rise in new listings in the City helped to prevent inventory levels from dropping too much.

Toronto Active Detached Listings

The total number of detached listings available.

Source: TREB, Better Dwelling.

Detached sales in the 905 are moving a lot faster than sales in the City of Toronto. Prices are growing faster, and inventory is being taken out a rapid pace. Price growth isn’t large enough to think a new buying boom is just around the corner, but it’s no longer in the gutter either.

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6 Comments

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  • Reply
    SUMSKILLZ 4 weeks ago

    Detached in the north 905 is moving, especially priced middle downwards. Wood framed midrise condos, not so much (I guess other folks hate that they changed the building code too!).

    When you see a viewing line up for a row house, with a backyard facing tall power transmission towers, you know things are heating up again. Sign on another street, says “coming soon,” next day it says sold.

    There aren’t a lot of detached home listings below $850 000. When one pops up it is getting attention fast these days. I don’t see much thaw in homes 1 million+. There are lots of those available…and listings have been around what feels forever.

    • Reply
      Mike 4 weeks ago

      I agree, I am looking for $2M plus homes in North York. They are down quite a bit and the inventory is very high with only maybe 1 sale >$2M per month as per HouseSigma. My frustration is prices are not dropping despite high inventory and low demand. Wondering when and if this will happen. Houses cant stay on the market forever bleeding money, unless the owner has deep pockets and can keep carrying costs going & may not even really be worth it.

  • Reply
    Mark 4 weeks ago

    It is my impression….. or the market is hot only for properties that can be insured by the CHMC.
    Banks and any financial institution are willing to lend at low rates if they get the Insurance….but properties that are above that line can stay in the market for very long.
    So basically when we see housing price moving up… it is only because anything under 1M is going up… and they represent a large share of the properties been tradede.
    What is calling my attention is that for 1.1 M it is possible to buy a property that is 10 times better than what 0.95, gives you….comments

  • Reply
    Jupiter 4 weeks ago

    Hey stop kidding around, we all know the only way to bring affordability back is to implement a predatory real estate tax where all none primary residential real estate are taxed at 3% estimated value per year. And all foreign owned residential real estate taxed at 5% per year.

    We dont want to turn into another HongKong, when will these idiots learn. Don’t mess with affordability.

    • Reply
      Kevin Stoddart 3 weeks ago

      How about “Don’t mess with anything”
      Government involvement has only been causing problems. Some idiot politician decides to tweak the industry to win votes with a catchy slogan and ends up torquing the market in a way they didn’t predict, usually exacerbating the problem, or creating a whole new one.
      As an example, the stress test hurts first time buyers thay it wanted to protect. They are kept out of the market entirely. It does not hurt investors who know the system and have income or assets to cover the stress test.

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