TREB’s recent market report suggests a record number of sales recorded through MLS in October 2016. Sales were up by 11.5 per cent compared to October 2015. The largest annual rate of sales growth was recorded in the condo market segment. The average selling price for all home types was up by 21.1 per cent on a year-over-year basis. New listings were slightly up, but it’s still not enough to satisfy the strong demand in the GTA.
The good news is that there is a slight increase in listings and hopefully this increase will become a pattern. The fact that the biggest sales growth was recorded in the condominium area is not surprising, since new first time buyers will mostly be condo buyers. Detached sales were up in the 905, which is also not surprising, because what’s available Downtown is mostly semi-detached and attached properties.
TREB market statistics state “the largest annual rate of sales growth was in the condominium apartment market segment”. My experience in October reflected exactly that. We had multiple offers on our condo listings, and our condo buyers had to see places quickly before they sold in a blink of an eye! Especially in the lower price bracket, you had to get in there quickly and would likely be in competition. Important for buyers to have all their ducks in a row, so they can act fast!
I think the most salient point in this report is the following:
“New listings were up slightly in October compared to last year, but not nearly enough to offset the strong sales growth. This meant that seller’s market conditions continued to prevail as buyers of all home types experienced intense competition in the marketplace. Until we experience sustained relief in the supply of listings, the potential for strong annual rates of price growth will persist, especially in the low-rise market segments,” said Jason Mercer, TREB’s Director of Market Analysis.
I foresee continued appreciation in both the freehold and condo marketplaces. Lack of affordable freehold is moving buyers into the condo market or they are looking for freehold in the 905 area where prices are less expensive. I doubt that this trend will stop anytime soon. More demand than supply, tough for Buyers but a great time to be a seller!