Strong Toronto Home Sales Growth in October

The Toronto Real Estate Board (TREB) just announced some good news for the housing market. According to Greater Toronto Area Realtors, there were 8,552 sales of homes in October 2014, reflecting a 7.7% increase from 7,941 sales in October 2013. The report compared sales of homes in the Greater Toronto Area during the month of October 2014 to sales during the month of October 2013. The Greater Toronto area Realtors also broke down the numbers for the City of Toronto. Board President Paul Etherington attributed the “strong growth in sales” to buyers remaining “upbeat about the benefits of home ownership over the long term.”

Indeed, the average price for October 2014 sales was $587,505, or 8.9% higher than the average price reported for October 2013. For the City of Toronto, the average price of home sales grew a little more slowly (Realtors reported a 6.57% increase from October 2013 to October 2014), but in the rest of the Greater Area of Toronto (GTA), homes sold for nearly 11% more in October 2014 compared to October 2013. New listings also shot up, especially in the City of Toronto, where 5,699 homes were listed on the market for the first time in October 2014, compared to 5,326 listings in October 2013 (a 7% increase). According to the Summary of TorontoMLS Sales and Average Price October 1 – 31, all indicators increased in October 2014. The City of Toronto saw the greatest increase in sales and new listings, while the rest of the GTA saw the greatest increase in average selling price. The TREB reports that low-rise homes, including singles, semis, and town houses, were mainly responsible for the increase in average selling price. Sales of single houses went up by 9.9%, while the average selling price of singles went up by 9.6%. Unusually, sales of single houses increased more in the GTA (10.8%) compared to the City of Toronto (7.8%), whereas the opposite was true for semis and condo apartments.

The increase in price paired with the increase in sales suggests that there is still a lot of untapped demand for housing in the Greater Toronto Area. In fact, TREB Director of Market Analysis Jason Mercer remarked that many potential home-buyers continue to face difficulties finding a home in the GTA, where growth in average price outpaced growth in sales. There is compelling evidence that this sellers’ market will last throughout the rest of 2014 and well into the new year.

 

Read the press release here: http://www.torontorealestateboard.com/market_news/release_market_updates/news2014/nr_market_watch_1014.htm