Greater Toronto Area Real Estate Market Update: 2019

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December 11, 2019
Posted By Harvey Kalles Real Estate LTD., Brokerage

Harvey Kalles Real Estate logoTORONTO, 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.

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