Home sales in Toronto hit a new high, rising 42% in September compared to the same month last year.
The Toronto Regional Real Estate Board (TRREB) says 11,083 homes were sold in September. Strong demand for low-rise homes also drove up the average selling price of all home types for the month to $960,772, up by 14% year-over-year.
Sales for the first nine months of this year rose one per cent compared to the same period last year.
“Improving economic conditions and extremely low borrowing costs sustained record-level sales in September, as we continued to account for the substantial amount of pent-up demand that resulted from the spring downturn,” TRREB president Lisa Patel said in a statement on October 6. “Further improvements in the economy, including job growth, would support strong home sales moving forward.”
Patel underscores the importance of continuing to monitor the trajectory of COVID-19 cases, the government’s policy in response to the pandemic, and the impact on jobs and consumer confidence.
Jason Mercer, TRREB’s chief market analyst, says double-digit, year-over-year price growth was “commonplace” in the Greater Toronto Area in September as sales outpaced new listings, resulting in tighter market conditions and driving the overall average selling price to a new record.
The better-supplied condominium market segment experienced a slower pace of price growth compared to low-rise homes.
Robert Hogue, a senior economist with RBC Economics, said in his October report on Canada's housing market that the number of condos put up for sale is rising much faster than the number of low-rise homes. The pandemic is also changing the housing needs of many current owners and shifting the demand from condo apartments to single-detached family homes and other low-rise categories, boosting the supply of smaller condos in core urban areas.
“These trends have put single-family home prices on accelerating trajectories,” Hogue states.
Vancouver saw a similar surge in home resales, which soared 56% year-over-year in September. The increase was driven by detached home transactions which rose 77% — more than twice the rate of condos which went up by 37%.
Calgary’s single-detached home resales saw a more moderate rate of growth, rising 28% compared to a year ago, while condo sales fell by 0.8%.
Jean Lian is Head of Communications and Brand Marketing with HomeLife Realty Services Inc. in Toronto. Contact Jean at email@example.com.