In the Greater Toronto Area (GTA), house prices have continued to surge, outpacing the cooling effect on sales, as per a recent report from the Toronto Regional Real Estate Board (TRREB). Despite a decline in home sales, both the average selling and benchmark prices have seen increases.
The report reveals that the average price for a home in the GTA rose by 3.5 percent from October 2022 to reach $1,125,928 this October. Similarly, the benchmark price increased by 1.4 percent, totaling approximately $1,103,600.
Jason Mercer, TRREB's chief market analyst, commented on the competitive nature of the housing market, saying, "Competition between buyers remained strong enough to keep the average selling price above last year’s level in October and above the cyclical lows experienced in the first quarter of this year. The Bank of Canada also noted this resilience in its October statement."
Mercer further noted that while higher borrowing costs have affected the housing market, home prices remain below their peak, which was reached at the beginning of 2022, thus partially offsetting the impact of increased borrowing costs.
The average home price in Toronto has experienced a slight decrease of around $49,160 since October 2022, with homes currently priced at approximately $1.1 million.
Detached and semi-detached homes, as well as townhouses, have all witnessed price increases in both Toronto and the rest of the GTA compared to October of the previous year. Detached homes have seen a 6.1 percent increase to an average of $1,450,112, while semi-detached homes have risen by 2.1 percent to $1,102,721, and townhouses have experienced a 1.1 percent increase, reaching an average of $930,185. Condominiums, however, are the exception, with a 1.2 percent decrease to an average of $708,780 in the region.
Compared to September's report, TRREB noted that benchmark prices have slightly decreased on a seasonally adjusted basis, although average selling prices remained steady at around $1.1 million.
Despite the surge in house prices, home sales in the GTA have seen a decline, dropping by 5.8 percent from 4,930 to 4,646 compared to the previous October. The report also highlighted a decrease in sales on a month-over-month seasonally adjusted basis.
TRREB President Paul Baron attributed the shift in demand to the rental market, explaining, "Record population growth and a relatively resilient GTA economy have kept the overall demand for housing strong. However, more of that demand has been pointed at the rental market, as high borrowing costs and uncertainty on the direction of interest rates has seen many would-be home buyers remain on the sidelines in the short term. When mortgage rates start trending lower, home sales will pick up quickly."
Here are the average home prices across different regions of the Greater Toronto Area for October, categorized by home types:
Halton Region: $1,199,254
Peel Region: $1,080,216
City of Toronto: $1,127,635
York Region: $1,293,179
Durham Region: $931,548
Dufferin County: $816,291
Simcoe County: $974,831
While sales may be cooling, the resilience of house prices in the GTA indicates continued interest in the real estate market, despite the challenges posed by high borrowing costs and shifting consumer sentiment.
