Are Toronto home prices really that unaffordable?

By: Thomas Cook

Are Toronto home prices really that unaffordable?

Sales were barely up for September compared to last year with 6,455 houses and condominiums changing hands in all the districts.  This was the 2nd lowest number of sales for the month since September 2012.

Condo townhouse and high-rise suites took a significant 35.4% share of the market with 2,286 units being sold.

The September average sale price for all GTA homes came in at $796,786– this was a modest 2.9% increase from one year ago.  Considering that May/June/July 2017 was the turning point in last year’s crazy market, if instead you compare 2018 with September 2016 (with an average of $756,168), this year’s average was still up 5.4% in that 2-year period. 

The active listing inventory is one of the strongest indicators of how slow or fast the market has been moving.  The inventory average for the month of September compared to historical numbers was up 8.5% but increased by 5.6% from last year at this time.

However, this is occurring selectively, with the ‘central core’ Toronto neighbourhoods still doing very well while the outer regions (Peel, York & Durham) are not seeing the same level of activity.

The sales-to-listings OR percent-chance-of-selling ratio is how we determine what type of market we’re actually in.  24-28% is a neutral market, below 24% is a buyer’s market and above 28% is a seller’s market. 

In September, that ratio finished at 32.1% - one percent below last year – and the lowest so far in 2018.  The GTA overall is now into a very moderate seller market territory so sellers may need to adjust their expectations if they want to make a move.

The days-on-market average for GTA / Toronto homes was 26 days, one day faster than in August.

Here’s a summary of the significant real estate milestones for Toronto in September 2018… a typical summer market overall with the usual lower sales and dip in the average selling price.

Watch the video to get the complete September 2018 Market Report details.


 

Here's the complete text version of the September 2018 Toronto Real Estate Market Report to read.


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