Toronto real estate prices warmed up in September, but this report wasn’t indication of a hot market. Numbers from the Toronto Real Estate Board (TREB) showed price growth in a number of segments. However, inventory continues to rise against a decline in home sales in the Greater Toronto Area (GTA).
Price Growth Deceleration Slows
The composite price of homes across Toronto saw a rise. TREB reported a composite benchmark price, a.k.a. the price of a typical home, is now $750,800, up 12.22% from the same month last year. In the City of Toronto proper, the composite benchmark is now $787,700, a 15.28% increase compared to last year. The composite moved higher mostly due to an increase in condo prices.
Better Dwelling. Source: TREB
The average sale prices aren’t looking nearly as hot, but are doing better than last month. TREB reported an average sale price of $775,546, up 5.9% from the month before. Despite the large monthly climb, that only brings the average up 2.6% compared to last year. The City of Toronto did slightly better, with the average price hitting $809,591, up 5.84% from last year. The important tidbit here is trend of price deceleration broke. Doesn’t mean prices are going to soar any minute, but it does mean it could be worse.
Source: TREB, Better Dwelling.
Best and Worst Price Changes In Dollars
Neighborhoods are seeing huge monthly swings in the benchmark price. The biggest gainer was TREB C10, which is the Mount Pleasant East area. There, the benchmark price rose $15,200 from the month before. The benchmark is now $986,200, a 15.08% increase from the same month last year.
The biggest drop was in TREB C09, the Rosedale-Moore Park neighborhood. There the composite price dropped $45,300 from the month before. The benchmark price in that neighbourhood fell to $1,135,400, but is still up 15.48% from last year.
New Listings Jump 42.92% From The Month Before
Inventory made a big return, after the August lull. New listings across the GTA hit 16,469, a massive 42.92% increase from the month before. This is an 8.99% increase from the same month last year.
Better Dwelling. Source: TREB
Active listings, which are the number of listings still for sale at month end also increased. Total active listings reported was 19,021, up 15.85% from the month before. This represents a 69% increase compared to the same month last year. The seasonal increase is somewhat normal, but is massive relative to last year. Note the term relative, because agents will say there’s still less inventory than typical. This is true compared to historic trends, but does that matter? It’s really up to the market to decide what’s the new normal.
Sales Are Down Over 35% From Last Year
Despite the seasonal increase in sellers, buyers didn’t feel the same way. TREB reported 6,379 sales, a 0.35% increase from the month before. That’s about a third of the August to September jump observed last year. September’s sales still remain 35.58% lower than the same month last year. Sales volume tapers with higher prices, but inventory doesn’t normally increase as well.
Prices increased, sales dropped, and there’s more inventory. The floor of prices continues to rise, bringing composite numbers up with it. There’s still two problems – more inventory and less sales. More inventory means more selection, and therefore less pricing pressure. While that’s good news for buyers, it’s not great for price growth. As always, we’ll be breaking the market down segment by segment over the next few days.
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