October 2019 represents the 7th month in a row we have seen month over month gains from 2018. Taking into consideration 2018 had less growth than previous years is important to point out as the numbers overall are lower when compared to 2017 record sales setting year in Real Estate. Still, 7 months running with plus numbers makes us ask how long can this last?
October 2019 showed a 14% growth vs October 2018, a total of 8,491 units sold vs 7,448 in 2018. And to think in the recent election there was talk of a possibly of lifting or adjusting the stress test to allow for buyers to borrow more thus afford more and possibly push sales & prices even higher. The focus really is in the wrong place, we urgently need to address the lack of inventory available, be it to build more quickly by relaxing some of the strict building codes and find more manpower to address the backlog for permits (It can take up to 9Years for a condo building to be finished from launch to move in in the city of Toronto) to looking into how many empty homes are sitting on the market owned by investors who refuse to rent them or sell and are just holding them much the way you hold a stock.
New listings were down 9.6% compared to October 2018 and the average selling price in October was $852,538 vs $807,538 in October 2018. Average price for a home in all of the GTA has now risen to $816,105. In Toronto that number is $880,841.
Rental market is also up significantly with the average 1 bedroom now renting at over $2200 a month compared to $2088 last year.
I have seen a bit of a flatline in terms of the amount of activity and competition on listings when it comes to traffic and how many offers a home gets in Toronto. I was seeing anywhere between 5-11 offers on homes in September and October in neighbourhoods such as Leslieville, Riverdale, Etobicoke, East York, Davisville, Junction etc. Its calmed down since then and some homes get no offers while others may get 1-3 but the buyers are there, just more cautious than the previous 2 months. It’s important to note that most buyers are being cautious and aware of the stress test, where rates are and where they are possibly going and trying to stay within their means. This is encouraging compared to 2017 when buyers where very aggressive. Still the issue remains there are a lot of buyers and not enough sellers.
As always feel free to message me you comments or questions. Wishing everyone a happy rest of November!
Interesting Articles
Are Condo Units Really Sitting Empty in Toronto?https://www.movesmartly.com/articles/condo-units-sitting-empty-in-toronto
What Does the Federal Election Result Mean for Canadian Real Estate?https://www.movesmartly.com/articles/what-do-2019-federal-election-results-mean-for-canadian-real-estate
Small investors face losses on Toronto developer’s debt woeshttps://www.theglobeandmail.com/real-estate/article-small-investors-face-losses-on-toronto-developers-debt-woes/