Monday, October 21, 2019 / by Zifan Gao
TREB has released its September Market Watch Report showing yet another month of double-digit growth in residential sales. This is the sixth consecutive month seeing this kind of growth since last April and the market shows no signs of slowing down. The rental market, however, seems to be balancing out, as listings surpass transactions, according to the third-quarter TREB report.
Interpreted intelligently, these statistics could provide invaluable insights for home buyers, sellers, tenants, and landlords alike. From determining your buying or selling strategies, adjusting timelines, to setting up realistic expectations, and predicting investment outcomes, these insights can guide consumers to act from an educated position.
Drawing on more than 50 years of expertise in real estate, Boiron Group summarized the TREB reports into a bite-sized digest so you can be better informed of today’s market in no time.
Home Sales Increased by 22% Year-over-Year, market stays tight
For the sixth consecutive month, residential sales show a double-digit growth. With sales up by 22% compared to last year and active listings down by 14.1%, conditions in the GTA housing market remain tight. The trend started this February persists as demand surpasses supply and prices continue to rise.
The annual rate of price growth has hit this year’s highest
The annual rate of price growth in September reached the highest point so far in 2019. The MLS® Home Price Index (HPI) Composite Benchmark was up by 5.2% on a year-over-year basis. The average sale price increased by 5.8% compared to last year and, after a preliminary seasonally adjustment, was up by 1.2% compared to last month. Detached homes account for the bulk of the September residential sales with a price increase of 28.9% compared to last year.
Rental market could start to balance
As opposed to the residential sales market, according to TREB’s Q3 Rental Market Report, the rental market is seeing an overflow of listings compared to transactions. There are 51.9% more apartment listings than rental transactions and 55% more townhouse listings than transactions.
According to TREB President Michael Collins “steady condominium apartment completions coupled with strong average rent growth have prompted many investor-owners to list their units for rent. If growth in rental listings continues to outstrip growth in rental transactions for a sustained period, we could see a more balanced market in the future”.
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