Photo: James Bombales
After pushing past $1 million for the first time in September, the average price of a detached home in the Greater Toronto Area rose again in October, hitting $1,034,077.
That’s according to the Toronto Real Estate Board (TREB), whose Market Watch report for October was published Thursday.
The report, which looks at resale transactions across the region’s suburban 905 area as well as the central 416, recorded a 25.8 per cent year-over-year increase for detached home prices in the GTA. While the average detached home price in the suburban 905 was well below its 416 counterpart — $948,191 compared to $1,303,339 — it logged a much higher price growth rate at 29.4 per cent. In the 416, prices for detached homes rose 21.7 per cent over October 2015.
The average sale price for all housing types across the GTA also saw a significant increase, rising 21.1 per cent year-over-year to $762,975. All major home types saw double-digit prices increases, according to a news release that accompanied the new TREB data.
Meantime, the board tracked 9,768 transactions through its MLS System in October, a record total for the month and up 11.5 per cent over the previous year. Condo apartments saw the largest sales surge of any housing type, up 22.2 per cent across the GTA with the 905 region seeing a greater uptick than the 416.
“As we move through November and December, we will be watching the sales and listings trends closely, in light of the recent policy changes announced by the Federal Minister of Finance,” said TREB President Larry Cerqua in a news release.
The changes Cerqua is referring to were announced by Finance Minister Bill Morneau in October and close a tax loophole foreign buyers could use to avoid capital gains taxes when selling property while introducing stricter mortgage stress tests. In an October report, TD economist Diana Petramala wrote that the policy changes could slow Canadian home sales in the final months of 2016 with homebuilding activity likely following suit.
A pronounced sales slowdown was not seen in October, which logged a record total for sales. However, there were some possible signs of deceleration, with detached homes seeing a 10 per cent year-over-year sales increase GTA-wide in October, compared to a 22.1 per cent increase in September.
“New listings were up slightly in October compared to last year, but not nearly enough to offset the strong sales growth. “This meant that seller’s market conditions continued to prevail as buyers of all home types experienced intense competition in the marketplace,” said Jason Mercer, TREB’s Director of Market Analysis.
“Until we experience sustained relief in the supply of listings, the potential for strong annual rates of price growth will persist, especially in the low-rise market segments.”