Toronto & GTA Real Estate Statistics for October, 2015

Toronto & GTA Real Estate Statistics for October, 2015 - Another Record...

Toronto, November 5, 2015 - The Toronto Real Estate Board today released the October, 2015 MLS® home sales statistics showing yet another monthly record.

Overall, including all home types in all areas, the total number of sales was up 3.4% to 8,804 units last month at an average price of $630,876, up 7.3% over last October's $587,945. All figures are quoted on a year-over-year basis unless otherwise noted.

The weak spot for sales was in the Detached group across the Greater Toronto Area. Sales of detached homes in the "416" fell 9.7% versus last October, though Detached sales in the balance of the greater Toronto area rose 2.4% - an overall change of -1.1% for the Detached group. That said, average sale prices for Detached homes rose 12.5% in the 416 to an average price of $1,071,394. In the balance of the GTA the average selling price for the group was up 9.1% to $734,745. Overall, that amounted to a 9.2% price increase for the entire TREB market area.

Condo apartment sales were brisk, up 9.7% in the 416 and up by the same amount in the balance
of the GTA. There were 1,587 condo apartments sold through the Toronto MLS® system in October in the 416, and 632 units in the balance of the GTA. In the 416, the average sale price of those units was $406,792, up 4.2%, and the average price for the balance of the GTA was $318,317, up 3%.

Supply of inventory remains tight with the "Total Active Listings" again down versus the prior period, off 7.5% as of October 31 to 16,180 homes available [17,497 units at the end of last October]. Obviously the low interest-rate environment and resultant demand has driven up prices, thus compromising affordability - no doubt at least part of the explanation for the fall in sales of Detached homes and the healty rise in more affordable condominium apartments.

“Record sales coupled with a constrained supply of listings in many GTA neighbourhoods has underpinned very strong price growth throughout 2015. Even if we do see a greater supply of low-rise listings in the marketplace over the next year, market conditions will remain tight enough to see continued price growth well-above the rate of inflation,” said Jason Mercer, TREB’s Director of Market Analysis.

That total active listings figure of 16,180 homes divided by the month's total sales of 8,804 gives us an "indicated forward inventory" of just 1.84 months.

Homes sold, on average, "12% faster" than last October at 22 days on the market, versus 25 days on the market last October.

On another note, Kathleen Wynne's Ontario government is strongly considering legislation that would allow municipalities to add their own Land Transfer Tax levy on top of the existing Provincial Land Transfer Tax. According to Toronto Real Estate Board President Mark McLean, “Despite the record October result, I must point out that the Government of Ontario could hamper home sales in the near future. The Wynne government is seriously considering allowing municipalities throughout Ontario to institute a second land transfer tax on top of the existing provincial tax. Recent polling has shown that the great majority of Ontarians oppose this tax and would consider delaying a move if they were forced to bear the additional upfront cost.”

Naturally, increasing the costs of purchasing anything will hamper it's sales to some degree...but, as we've pointed out here before, the City of Toronto added it's own Land Transfer Tax in 2008 - which [former] Mayor Rob Ford vowed to eliminate.

If that added tax did, in fact, cause the market to stumble, it didn't negatively affect it for very long. Then again, we have to assume that at some point there will be a slowing in Toronto and GTA home sales. "Every month cannot a new record set." It's at that point - and beyond - that any new costs could have a significantly dampening effect.

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