During a month where home sales in Toronto and the GTA typically slow down, homebuyers this October seemed to ignore that historical trend, frantically buying up homes at a time when prices escalated just as quickly. According to figures released by the Toronto Real Estate Board recently, the city is still on pace to see record breaking home sales and price figures. You can read the full TREB report here : http://www.trebhome.com/market_news/market_watch/
As Susan Pigg of The Toronto Star so poignantly put it, “Neither the Blue Jays’ winning streak nor Stephen Harper’s losing streak managed to distract homebuyers across the GTA as sales set a record for the month of October…”
Here is a breakdown of what happened in Toronto last month:
- The average price of a detached house in Toronto has rose by 12.5% compared to October of last year, reaching a high of $1.07 million.
- Sales of detached homes were down 9.7% in the City of Toronto, year over year.
- The average price of a condo in Toronto also rose 4.2% year-over-year to a price of $406,790.
- Toronto, with its abundant supply of condos, saw the number of active listings drop 7.5% from last year.
- The average townhome rose 11.2% in the last year to $579,350.
- October home sales in Toronto rose by 3.4% to 8,804.
- The MLS Home Price Index Composite Benchmark price — considered by TREB to be a more accurate reflection of price growth because it factors out sales at the extremes — went up 10.3%, year-over-year.
The only notable statistic to see a major downturn was the number of homes listed, with the total number of “for sale” signs down 7.5% in October compared to a year ago,
Jason Mercer, director of market analysis for the Toronto Real Estate Board stated:
“Even if we do see a greater supply of low-rise listings in the marketplace over the next year, market conditions will remain tight enough to see continued price growth well-above the rate of inflation.”
That new land transfer tax, which now only exists in Toronto, has been blamed for pushing house prices further out of reach and impacting sales. A Toronto home buyer will pay a total of $10,200 in land transfer taxes on a $450,000 home: $5,475 in provincial land transfer tax and $4,725 in Toronto land transfer tax.