This Fall continues to be an odd Toronto real estate market. Condos continue to move well, houses sub $1 million are doing very very well in the East end (they don’t really exist anywhere else in the Old City of Toronto), luxury homes – i.e. over 2 million are not fairing as well. The new Stress Test that was announced seemed to have backed buyers off a little bit more in the bracket above 1 million. My suspicion is that this will continue into the new year likely until April, at which point the market will pick up again as the buyers and sellers will better understand that rules and that life simply carries on. Note that I do think 2018 will be a more balanced year in sales.
I’m finding that more and more home owners are holding, they are not willing to move up right now, the price gap is too large for them, this is likely very good news for Contractors and Trades.
Here is the latest for November:
Toronto Real Estate Board reported 7,118 residential sales through TREB’s MLS® System in October 2017. This result represented an above-average increase between September and October of almost 12 per cent, pointing to stronger fall market conditions.
On a year-over-year basis, October sales were down compared to 9,715 transactions in October 2016. Total sales reported through the first 10 months of 2017 amounted to 80,198 – down from 99,233 for the same time period in 2016.
“Every year we generally see a jump in sales between September and October. However, this year that increase was more pronounced than usual compared to the previous ten years. So, while the number of transactions was still down relative to last year’s record pace, it certainly does appear that sales momentum is picking up,” said Mr. Syrianos.
The MLS® Home Price Index Composite benchmark price was up by 9.7 per cent on a year-over-year basis in October. Annual rates of price growth were strongest for townhouses and condominium apartments. The average selling price for October transactions was $780,104 – up by 2.3 per cent compared to the average of $762,691 in October 2016.
“The housing market in the GTA has been impacted by a number of policy changes at the provincial and federal levels. Similar to the track followed in the Greater Vancouver Area, it appears that the psychological impact of the Fair Housing Plan, including the tax on foreign buyers, is starting to unwind,” said Jason Mercer, TREB’s Director of Market Analysis.
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