Rising Prices and More Listings: What’s Up with Toronto Real Estate?
Home prices in Toronto are up, says data from the Toronto Regional Real Estate Board (TRREB). As of last September, the average home costs almost $1.2 million. That’s a three percent rise from last year.
The Price Tags
Different home types have different price trends. Detached houses average over $1.7 million, up 8.5%. Semi-detached homes cost about $1.3 million, a 5.9% increase. Townhouses come in at $992,000, up 5.1%. Condos, however, are down 4.9%, priced around $732,000.
Fewer Sales, More Listings
Even with higher prices, fewer homes are selling. Sales dropped 7.1% in September, totaling 4,642 units. So why the drop in sales but the rise in prices? The answer is more supply.
Supply on the Rise
New listings have jumped 44% in a year, says TRREB. That’s 16,258 new homes on the market. Active listings also went up, by almost 40%. They now sit just under 19,000.
Inventory Details
Inventory, measured in months, rose slightly from 2.4 to 2.5. In simple terms, it means we have a bit more time to sell current homes at the existing pace. Here’s how it looks by home type:
- Detached: 7,465 new, 8,439 active listings
- Semi-detached: 1,169 new, 1,079 active listings
- Townhome: 1,352 new, 1,381 active listings
- Condo: 1,153 new, 1,374 active listings
Room to Bargain?
TRREB’s Jason Mercer says buyers might get a better deal soon. With more listings, they might have more power to negotiate.
More Needs to Be Done
John DiMichele, TRREB’s CEO, says we need more homes. He calls for action from all levels of government. He says we need to match housing supply with population growth.
Construction Data
Housing starts dropped 9% last August. But year-to-date, they’re up by 28%. Even so, experts warn that Toronto is a decade behind in building homes.
What’s Next?
Housing affordability is a big issue, warns RBC Economics. If it doesn’t improve, people may move to other parts of Canada. On a national scale, Canada needs about 3.5 million new homes by 2030. Missing that target could lock a generation out of owning homes in big cities.
