Home sales in the GTA were up 1.9% and average selling prices were up 2.9% in September 2018 compared to September 2017. Certain asset classes and neighbourhoods continue to outperform while others do not. For example, detached home prices in the City of Toronto were up 1.04% compared to a year ago while detached home prices for all of the Toronto Real Estate Board (over 500 communities) were down 1.63%. Buyers and sellers should seek the advice of a professional REALTOR®️ before making any decisions in the present market.
Condominiums across the GTA, and especially in Toronto, continue to show strength as buyers priced out of the freehold market settle for condos, millennials step up to purchase their first home, and downsizers seek smaller spaces close to amenities. A strong local economy, foreign investment, and immigration also continue to drive sales and price growth.
After holding interest rates in September, the Bank of Canada is expected to raise rates at its meeting on October 24th and continue gradually raising rates to 2020. This is likely to continue having impacts on market demand, reigning in the massive price increases experienced up to March 2017 and returning price growth to levels more in line with inflation.
NAFTA negotiations came to an end at the beginning of October with the new US-Mexico-Canada Agreement (USMCA). The previously factored in trade discount due to uncertainties over NAFTA negotiations has now been removed from the Bank of Canada's radar as it relates to interest rate increases. The Bank of Canada will, however, continue to take a cautious and data-driven approach to future rate increases.
Toronto Real Estate Board (TREB) Market Watch Report
Below is a market snapshot of single family and condominium apartment price growth by municipality as of September 30, 2018.
The figures cited in this note are an average. Please contact us for neighbourhood specific information so you can make an informed decision if you are thinking about making a move.
If you want to know how prices are performing by asset class in your specific neighbourhood or any neighbourhood in the GTA you may be interested in, please click here.
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Multifamily Investment
Mixed Use
Fixer Uppers
Estate Sales
Bank Owned
Single Family Home Price Index
Toronto: +0.55% (1 Month), -1.19% (3 Month), +0.82% (6 Month), +1.86% (1 Year)
Mississauga: -0.65% (1 Month), -1.37% (3 Month), -0.20% (6 Month), +0.37% (1 Year)
Brampton: +0.74% (1 Month), -0.73% (3 Month), +1.91% (6 Month), +3.93% (1 Year)
Vaughan: -0.82% (1 Month), -2.01% (3 Month), -2.68% (6 Month), -3.06% (1 Year)
Richmond Hill: -0.07% (1 Month), -2.53% (3 Month), -0.62% (6 Month), -7.08% (1 Year)
Markham: +0.04% (1 Month), -1.02% (3 Month), -0.11% (6 Month), -4.20% (1 Year)
Condominium Apartment Home Price Index
Toronto: +0.38% (1 Month), +1.12% (3 Month), +4.24% (6 Month), +11.50% (1 Year)
Mississauga: -0.66% (1 Month), +0.54% (3 Month), +2.67% (6 Month), +8.84% (1 Year)
Brampton: +0.51% (1 Month), +4.21% (3 Month), +3.20% (6 Month), +8.48% (1 Year)
Vaughan: -0.94% (1 Month), -0.99% (3 Month), -0.81% (6 Month), +2.99% (1 Year)
Richmond Hill: -1.33% (1 Month), -1.46% (3 Month), -1.24% (6 Month), +1.96% (1 Year)
Markham: -0.23% (1 Month), +1.31% (3 Month), +2.27% (6 Month), +7.51% (1 Year)
*How to use these numbers: If on September 1, 2018 the price of a condo in Toronto was $500,000, it would be worth $501,900 on September 30, 2018 based on the home price index (HPI). That $500,000 condo in Toronto appreciated $1,900 in September or $63.33 per day.
Prepared by Michael De Luca, Real Estate Sales Representative at Private Service Realty (PSR), Brokerage
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