Sales were up 6% for October compared to last year with 7,492 houses and condominiums changing hands in all the districts. This was the 2nd lowest number of sales for the month in the past 5 years.
Condo townhouse and high-rise suites took a significant 35.4% share of the market with 2,653 units being sold.
The October average sale price for all GTA homes came in at $807,340– this was a modest 3.5% 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 October 2016 (with an average of $762,747), this year’s average was still up 5.8% 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 October compared to historical numbers was up 9.3% but was flat 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 October, that ratio finished at 39.6% - 2 percent above last year – and the 3rd highest so far in 2018. The GTA overall is now into a 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 24 days, 2 days faster than in September.
Here’s a summary of the significant real estate milestones for Toronto in October 2018… it could be the start of a ‘turn-around’ time for our market but time will tell.
- 2nd lowest October sales since 2012 (7,492)
- The ratio of sales-to-listings increased 7 points to 39.6% in October – Now in a moderate seller market territory
- The average sale price came in at $807,340– which was up just 3.5% compared to October 2017 – Remember we got new ‘stress-test’ financing rules this past January
- Note that this average was still 5.8% higher than 2 years ago in October 2016
- Overall sales in the month were up 6% from one year ago
- The GTA real estate market overall averaged the days-on-market at 24 – a fairly typical level for Toronto’s early fall market
- Detached home sales in October 2018 with a purchase price over $2,000,000 (202) were up 9% from last year
- It’s noticeable that first-time buyer aspirations are now shifting to a condominium lifestyle – CONDO sales took a 35.4% share of the total market
- Downtown condo active listing numbers were lower in C01 by 9% and up in C08 by 8% from last year at this time
- October was only the 2nd month where sales were up this year over last
- The downtown condo days-on-market average was 15-18 days – significantly faster than the overall market
- The ratio of sales-to-listings for condos downtown were close in both C01 (72.7%) and in C08 (61.4%) indicating an extremely strong seller’s market… a wee bit more than double the GTA overall.
- The average sale price for downtown condominium suites is up by roughly $65,000 from October 2017
- Building on this higher demand due to better affordability, condo appreciation in the two main downtown markets averaged 11-13% year-over-year
- Markets in York Region and other 905 neighbourhoods have suffered the most from the market slowdown – York Region is now showing that they’re in ‘buyer market’ territoryExpect slight inventory and sales increases as we move through the fall market - buyers should watch for more opportunities to get the condo or house of their dreams.
Watch the video to get the complete October 2018 Market Report details.
Here's the complete text version of the October 2018 Toronto Real Estate Market Report to read.
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