There were 25% more sales last month compared to a year earlier, reaching 7,658 transactions this September. The average price for all residential properties was $465,369, up 9.3%. But the board’s senior manager or market analysis, Jason Mercer, said Toronto’s market remains relatively affordable, despite the price gains this year.
“Strong price growth through the first nine months of the year was mitigated to a great degree by low interest rates and rising incomes,” he said. “As buyers continue to take advantage of the affordable home ownership options in the GTA, we remain on pace for the second best year for sales under the current TREB market area.”
TREB’s press release pointed out a five-year chartered bank fixed rate for August was 5.19%, a three-year rate was 4.35% and a one-year rate was 3.5%, according to the Bank of Canada. Toronto employment growth was also up 0.8% in August, and the unemployment rate dropped to 8.1% from 8.3% in July.
But as the buying activity continues and prices continue rising, there has been a shortage of property listings in the Toronto area over the summer. That’s resulted in greater competition between homebuyers, said TREB President Richard Silver.
“Over the past few months, the listing situation has started to improve, so we expect home buyers will have more homes to choose from in the months ahead,” he said.
September also ended a three-month skid in the average Toronto home price, but still not back to this year’s peak of $485,436 from May. The year-to-date average home price in Toronto is $464,024, which nearly double the average price of 10 year ago, when it was $251,508 in 2001.
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