The Greater Toronto real estate market divide is becoming more clear as city prices drop. Toronto Regional Real Estate Board (TRREB) data shows real estate prices in October were flat from a month before. While suburban 905 prices climbed, the City saw prices inch lower. This trend was amplified in Condo apartments, where City units made the largest monthly drop in years.
Greater Toronto Real Estate Prices Flat From Month Before
Greater Toronto real estate prices are up from last year, but just that data point may be misleading. TRREB reported the price of a typical home hit $897,700 in October, up 10.79% from last year. In the City of Toronto, the benchmark hit $962,700, up 7.18% from last year. Taken in aggregate, this looks like the market is absolutely ripping higher. However, a breakdown shows the aggregate annual growth doesn’t capture the post-pandemic market.
Greater Toronto Benchmark Price
The price of a “typical” composite home across Greater Toronto.Source: TRREB. Better Dwelling.
Both regions are seeing price growth deceleration, and on a monthly basis, things have stalled. Both the composite and City of Toronto saw the annual rate of growth fall, with the city slowing much faster. Across TRREB, the benchmark price for October is unchanged from a month before. In the City of Toronto, it made a monthly decline of $8,800, falling almost a full point. Breaking these segments down into detached and condos, we also see even more flags to perk your ears.
Greater Toronto Benchmark Price Change
The annual percent change of TRREB’s benchmark price for all home types.Source: TRREB. Better Dwelling.
Detached Homes Are Soaring In The 905, But Large Drops Seen In The City
Let’s look at detached homes first. Across TRREB, detached home prices reached a benchmark of $1,073,200 in October, up 0.35% ($3,700) from the month before. TRREB detached prices are up 12.68% compared to the same month last year. This is astronomical growth.
The City of Toronto detached prices aren’t experiencing the same clear trend. Detached prices in the City hit a benchmark of $1,267,200 in October, down 0.52% ($6,600) from the month before. Prices are still up 10.69% from last year – which is huge. However, the monthly drop is also very, very big. Whether it keeps moving higher is less clear with that detail.
Greater Toronto Condo Prices Slipped Lower
Greater Toronto condo apartments are up from last year, but seeing fast price growth deceleration. TRREB reported a condo benchmark of $585,100 in October, falling 0.95% ($5,600) lower. Prices are now up 6.15% from the same month last year, with growth decelerating significantly. In the City of Toronto the condo benchmark fell to $611,100, down 1.32% ($8,100) from the month before. The annual rate of growth is now 4.55%, a very fast deceleration from double digits earlier this year. The monthly drop for the condo benchmark was the second largest drop in at least half a decade.
On the surface, Greater Toronto real estate is on fire – it’s what’s dominating headlines. However, when broken down by region, we’re not at all seeing the same growth trend in the City. Drilling down further, some might even argue the growth trend is reversing in condos. Do prices rise or fall next month? Who knows. But keep in mind the monthly drop for October was monumental in some segments.
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