Market Commentary November 2018

As we enter the final quarter of 2018, the market is showing signs of a strong recovery, and for a fifth consecutive month, total sales were up year-over-year. October’s 7,492 sales represent a 6% increase from 2017, while the average sales price of $807,340 is an annual increase of 3.5%. The MLS Home Price Index (HPI) Composite Benchmark, which is a more accurate measure of market inflation, was up a healthy 2.6% from a year ago, with price growth being driven by condominium apartments and higher density low-rise housing options.

The sales mix across the GTA continues to show strong demand for low-rise housing. Single detached homes represented 44.4% of total sales, up 7.1% year-over-year, while semi-detached homes represented 10.3% of total sales, an increase of 12.7%. Within the 416, condominium apartments continue to account for the bulk of sales, accounting for 50% of last month’s residential real estate transactions.

Looking closer at prices in the 416, the average detached home sold for $1,311,265 (+1.4%), the average semi sold for $1,026,829 (+8.1%), the average townhome sold for $766,718 (+2.9%), and the average condo sold for $603,153 (+8.6%). In Central Toronto, where a premium is placed on low-rise real estate, single detached homes sold for an average of $2,019,854, semis sold for $1,357,769, and townhomes sold for $1,257,027, with condos selling on average for $674,252.

Housing supply continues to challenge. New listings were down 2.7% from a year ago and the pace of sales has now outstripped growth in supply for five months in a row. There is currently 2.5 months supply across TREB districts and 1.9 months in Toronto. If this trend continues, buyers may find it more difficult to find a home that meets all of their needs. Source from TREB & REBA October 2018 Central and Hamilton. For Stat Use Only*