Greater Toronto real estate continued its suburban winning streak. Toronto Regional Real Estate Board (TRREB) data shows aggregate price measures soared in September. The market isn’t quite so clear cut when dissected though. Most of the hot activity is in the detached home segment, which is seeing prices and sale volumes rip higher. Condo apartments aren’t quite as hot, with inventory rising and weaker price growth appearing.
Greater Toronto Detached Real Estate Prices Rise, While Condos Slip
The price of a typical home in Greater Toronto advanced quickly, but needs a little unpacking. TRREB’s composite benchmark, aka the price of a typical home, hit $897,700 in September, up 11.6% from last year. In the City of Toronto, this number reached $971,500, up 9.0% from last year. When looked at in aggregate, both numbers are higher and growth is accelerating. However, when disaggregated we see two totally different markets.
Greater Toronto Benchmark Price
The price of a “typical” composite home across Greater Toronto.Source: TRREB. Better Dwelling.
Breaking down the composite benchmark numbers, the price growth trend is less clear. Detached homes advanced to a typical home price of $1,069,500 in September, up 12.9% from last year. This is faster growth than the year before. Condo apartments however, slipped lower from the month before to $590,700, up 8.1% from last year. The rate of growth for condos actually fell. Part of the reason the composite increased so quickly is a rapid shift in sales composition. There’s much more detached homes selling these days than condo apartments. More on that later.
Greater Toronto Benchmark Price Change
The annual percent change of TRREB’s benchmark price for all home types.Source: TRREB. Better Dwelling.
Greater Toronto real estate saw the average home price advance significantly. TRREB’s average sale price reached $960,772 in September, up 14.0% from last year. The City of Toronto reached $1,022,051, up 11.9% from last year. Once again, a significant contributor to this trend is the sales mix composition. Detached sales increased at almost 4x condo apartment sales. This shifted the mix to include more expensive detached homes. The volume of detached homes is now around twice that of condos.
Greater Toronto Average Sale Price Change
The annual percent change of the average sale price of all homes.Source: TRREB, Better Dwelling.
Greater Toronto Real Estate Sales Hit A September Record
Greater Toronto real estate sales reached a new record for the month. TRREB reported 11,083 sales in September, up 42.3% from last year. City of Toronto properties represented 3,555 of those sales, up 18.7% from last year. This was largely expected, due to shifting the spring and summer sales comparison period.
Greater Toronto September Home Sales
The total home sales across TREB by year, for the month of September.Source: TRREB, Better Dwelling.
Inventory In The Suburbs Is Tight, While The City Swells
Despite a huge bump in sales and price growth, a lot of sellers are hitting the market – especially in the City. There were 20,420 new listings in September, up 30.8% from last year. The City of Toronto represented 8,689 of the new listings, up 49.6% more than last year. TRREB’s rate increased at a slower pace than sales, indicating the market is a little more tight. However, the City of Toronto’s new listings increased at a much faster pace than sales did. This means the lack of inventory is in the suburbs, while the City approached a buyer’s market.
Greater Toronto Sales To New Listings
The number newly listed units per month, in contrast to sales.Source: TRREB, Better Dwelling.
Greater Toronto’s total inventory reflected the new listings trend, with the suburban market being much tighter. TRREB reported 18,167 active listings in September, up 5.3% from last year. The City of Toronto represented 8,586 of those listings, up 56.7% from the same month last year. The City is seeing pressure ease, while the suburban market gets much tighter.
Greater Toronto September Active Listings
The total of active home listings across TREB by year, for the month of September.Source: TRREB, Better Dwelling.
Greater Toronto real estate is continuing the trend started at the beginning of the pandemic – a stronger suburban market. Listings in the 905 are much tighter compared to sales, when contrasted to City inventory. Detached homes are also seeing significantly stronger activity than condo apartments. The composite price is increasing to new highs, with a very large rate of growth. However, this is being driven by detached homes, which saw prices increase through the pandemic. Condo apartments are seeing prices slip lower though, despite favorable financing conditions.
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