Greater Toronto Area Real Estate Market Update: 2019
Posted by Jeremy Finkelstein — December 11, 2019
TORONTO, ONTARIO -
Greater Toronto Area (GTA) Real Estate Market Notes: 2019 (January – October)
- Total sales for 2019 through October are at 76,413. This represents a 13.4% increase year-over-year.
- For seven consecutive months, there has been a year-over-year increase in monthly sales volume
- Up 14% year over year in October.
- While, sales volume is increasing, new listings have been declining. As a result, there is currently a 1.8-month supply in the GTA, the lowest level of inventory since May 2017.
- The price gap between high-rise condominium apartments and low-rise housing options (single detached, semi-detached, rowhouses) is declining. This has led to increased interest in low-rise options over high-rise:
- Single detached sales are up 20%,
- Semi-detached sales are up 16%,
- Rowhouse sales are up 16%,
- Condo apartments are up 3%
- Average sales price / total sales by property type for 2019:
- Single Detached: $1,012,367 / 35,119
- Semi-Detached: $812,654 / 7,246
- Rowhouses: $711,045 / 6,988
- Condo Apartments: $583,632 / 20,363
- As of October, The MLS Home Price Index Composite Benchmark, which shows real inflation in the market, was up 5.8%, the strongest annual rate of growth since December 2017.
- It increased for all major housing categories but was highest in condo apartments at 8.57%.
New Homes & Condo Notes:
- Total sales in GTA for 2019:
- Condo Apartments: 21,980
- Low-rise: 7,900
- Sale of low-rise product is roughly double where it was last year
- 2019 will be 3rd or 4th highest sales total on record
- New Condo Apartment supply is 3 months below the 10-year average. Supply continues to be a challenge
- Lowrise / Single family inventory poses some affordability challenges with 40% of new homes inventory over $1 million CDN.
Rental Market Notes (as of October 2019)
- Avg 1-bedroom apartment rents at $2,262/month
- More supply than in previous years. Q3 saw an increase of 30% compared to same period in 2018
- 35% of all rentals in the region are in City of Toronto where vacancy rates now sit at 0.7%.
General economic conditions are strong:
- Lower unemployment rates
- Have been strong for 3 years
- Centred on full-time jobs
- Centred on younger population
- Increasing population
- Low mortgage rates
With positive local economic indicators, coupled with low market supply, expect moderate increases in housing prices in the GTA, in the face of “Sellers Market” conditions.
Notable Harvey Kalles Real Estate news:
- Launched a new website in September 2019: HarveyKalles.com