Toronto single-family home prices rise at fastest pace since 2017

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Real estate in the Greater Toronto Area has seen its sales increase and the detachment market is leading the way. Data from the Toronto Regional Real Estate Board (TRREB) shows single-detached home sales almost hit a record high in August. Most of the surge in activity has occurred in suburb 905, but shoppers in the city don’t seem to have noticed. The City sees prices increasing at the same rate, even if the market is not as tight as in the suburbs.

Single-family home prices in the Greater Toronto Area increase by more than 11%

The price of a typical single-family home is skyrocketing and it doesn’t matter where in the GTA. The benchmark detached from TRREB reached $ 1,054,300 in August, up 11.79% from the same month last year. The City of Toronto’s benchmark rose to $ 1,267,200, a relatively similar increase of 11.85% from last year. Both numbers are not only very high, they are growing at a much faster rate than when the economy was doing “well”.

Toronto Detached Benchmark Price

The price of a typical single-family home from the Toronto Real Estate Board, in Canadian dollars.

Source: TREB, Better Dwelling.

The benchmark price of a single-family home is growing at the fastest rate in years. The TRREB and City of Toronto Benchmarks are growing at a similar rate. This is the highest growth rate since 2017, when the market actually saw further restrictions to contain price growth.

Percentage change in the benchmark detached from Toronto

The 12 month percentage change in a typical single-family home across the Toronto Real Estate Board.

Source: TREB, Better Dwelling.

The median selling price was lower, but increased much more than the benchmark price. The median selling price of TRREB rose to $ 1,010,000 in August, up 18.77% from the previous year. The median single-family home in the city of Toronto increased by $ 1,200,000, up 24.10% from the previous year. This means that more than half of the homes in the 905 were 4% above the benchmark, and more than half in the city fell 5% below the benchmark. A little weird.

Average selling price of detached homes in Toronto

The average selling price of a detached house to the Toronto Real Estate Board.

Source: TREB, Better Dwelling.

The average selling price of single-family homes has increased similarly to the median. The average sale price of TRREB reached $ 1,172,880 in August, up 19.9% ​​from last year. The city of Toronto average rose $ 1,505,100, up 21.4% from the same month last year. The city average is much higher than the benchmark, indicating an increase in luxury sales.

Average change in the selling price of single-family homes in Toronto

The 12-month percentage change in the average sale price through TREB.

Source: TREB, Better Dwelling.

Busiest August for single-family home sales since 2016

Single-family home sales are still benefiting from a delayed spring market. TRREB reported 5,429 detached sales in August, up 50.6% from last year. The city of Toronto accounted for 1,099 of these sales, up 65.3% from last year. That’s just a few units below the record set for August 2016. Once again, the shift in demand from spring to summer due to the pandemic means it’s a very different reason. However, for current buyers it is the same.

Toronto August Sales

The total number of GTA detachment sales made during the month of August.

Source: TREB, Better Dwelling.

New inventory is growing much faster in the city

The number of new listings did not keep pace in the suburbs, but showed similar growth to sales in the city. TRREB reported 8,301 new listings in August, up 33.54% from the same month last year. The city of Toronto accounted for 1,862 of those sales, up 63.52% from the same month last year. This means more pressure on stocks in the suburbs, which is reflected in the number of active listings.

Individual sales in Toronto vs. New registrations

The total number of car sales, compared to the number of new car ads per month.

Source: TREB, Better Dwelling.

The number of active listings, or total inventory, has dropped significantly. TRREB reported 7,395 active registrations in August, down 25.41% from the same month last year. The city of Toronto accounted for 1,675 of these registrations, down 6.32% over the same period. The 905 sees its loose inventory plummeting much faster than the City.

Individual registrations active in Toronto

The total number of detached ads available.

Source: TREB, Better Dwelling.

Real estate in the Greater Toronto Area has been extremely busy this summer, and most of that activity has been in detached markets. Although the 905 is becoming a much tighter market than the City, both are seeing prices rise at the same rate. This probably indicates that cheap money and exuberance are much more important influencers in the city than in the suburbs.

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