The Toronto Regional Real Estate Board (TRREB) has published the sales data for September. With 4,642 home sales reported, transactions were down 7.1% from last year, as the effects of higher borrowing costs and inflation continue to impact the housing market.
Housing supply was up significantly in September following a jump in new listings. The 16,258 new homes listed for sale represent a 44.1% year-over-year increase. Active listings were up 39.8% to 18,912. Housing supply now sits at 4.07 months heading into October.
Interestingly, despite the significant rise in inventory, prices were also up on both a year-over-year and a month-over-month basis. The average selling price of $1,119,428 represents a 3.0% increase from 2022 and a 3.4% gain from August. The MLS Home Price Index (HPI) Composite Benchmark, which helps measure inflation in the market, was up 2.41% year-over-year (+1.35% in Toronto).
The average sale took place in 20 days on market at 100% of the listing price, with 70.6% of all transactions sitting between $600,000 and $1,500,000. Sales of homes over $2,000,000 accounted for 7.1% of the sales mix, up from 5.6% in August.
Looking at prices by housing type: detached homes sold for an average of $1,440,786, a year-over-year increase of 5.2% and a month-over-month increase of 1.7%. The average price for semi-detached homes was $1,094,074 (+4.9% /+2.4%), townhomes sold on average for $941,695 (+4.5% /+0.6%), and the average price of condos was $707,065 (-3.3% /+0.2%).
Higher borrowing costs, inflation, and ongoing uncertainty around the Bank of Canada’s decision-making direction have led to a more balanced market than we have seen in previous years. The number of listings has increased noticeably relative to sales. Long-term, the outlook for home ownership demand remains strong due to record population growth. However, in the short-term, buyers should benefit from increased negotiating power.
If you are planning to to buy or sell real estate, please speak with our team. We are here to help you stay informed. Harvey Kalles Real Estate has been in business since 1957, and we offer a wealth of experience.