Toronto and GTA Markets Show Consistent Price Increases in September 2016
TREB has just released its mid-month report:
SEPTEMBER 2016 TREB MID-MONTH STATISTICS
September 16, 2016 – Greater Toronto Area REALTORS® reported 3,847 home sales through TREB’s MLS® System during the first 14 days of September 2016.
This result represented a 19.1 per cent increase compared to the first two weeks of September 2015. Annual sales growth was strongest for condominium apartments, but double-digit increases were also noted for low-rise home types on a GTA wide basis. The supply of listings, or lack thereof, continued to be an issue in the TREB Market Area.
The number of new listings was down by 4.4 per cent compared to the same period last year. The decline for the TREB Market Area as a whole was entirely due to a dip in new listings in the City of Toronto. This lack of listings in the ‘416’ area code likely played a role in the slower annual rate of sales growth in the City of Toronto versus the surrounding regions.
Average selling prices were up strongly year-over-year for all major home types. This speaks to the widespread market tightness in the GTA today, with intense competition between buyers of all types of ownership housing.
The conditions underlying strong demand for ownership housing, including relatively healthy labour market conditions and the continuation of low borrowing costs, remain in place. With this in mind, the persistent lack of inventory should result in further robust price growth for the remainder of 2016.
The numbers released for just the first two weeks may not be as statistically significant as the full month numbers.
The current price for a single family home in the GTA is $719,340 compared to $710,410 at the end of August. That demonstrates a slight upward trend which is expected.
This is still off the peak which was in May where the average price was $752,381. If the market remains strong, we should see that same average price reached once again by the end of October.
The average increases, year over year comparing the first two weeks of September in 2015 to 2016, for detached and semis both in Toronto (416) and the rest of the GTA (905) all come in over 20%. The only single poor performer in the marketplace was Toronto situate (416) Condo apartments which increased only 8.3%.
Brian Madigan LL.B., Broker