Demand for Detached Houses in the 905 Area Increases
September 30, 2015
Increased Demand for Detached Houses in the 905 Area
This information is drawn from TREB’s Mid-Month Report September 2015.
Reports are published 26 times per year. The Monthly report is detailed and is usually the document that is relied upon, but changes often first appear in the mid-month report.
Here’s TREB’s report for mid-September:
“SEPTEMBER 2015 TREB MID-MONTH STATISTICS
September 15, 2015 – Toronto Real Estate Board Members reported 3,268 sales through the TREB MLS® System during the first two weeks of September 2015.
This result was up by 1.8 per cent year over-year. On a GTA-wide basis, annual growth in sales was driven by the townhouse and condominium apartment segments of the market.
The September mid-month sales result suggests that we could be on pace for a record number of transactions for the month as a whole, despite a constrained supply of listings for some low-rise home types like detached and semi-detached houses.
Many GTA households remain confident in home ownership as a quality long-term investment. This confidence is underpinned by very accommodative borrowing costs and a relatively strong local economy in Toronto and its surrounding regions.
The average selling price for all home types combined, at $604,218, was up by 8.5 per cent compared to the first 14 days of September 2014. As has been the case for much of 2015, overall average price growth was driven by the detached market segment.
While September mid-month sales were up compared to last year, the number of new listings was down over the same period by 2.4 per cent to 7,272.
This suggests that market conditions were tighter in many neighbourhoods this year compared to last.
With more competition between buyers for available listings, average price growth for most home types remained well above the rate of inflation.”
Comment
You would have to look at all of the numbers, but it is interesting to note that it might seem from the report that it was relatively similar across the board in terms of increases. But, that was not the case.
You have to drill down into the numbers. The average price of a detached home in the GTA rose 13.0% over the year.
This was composed of an 8.5% increase in the 416 area and a 15.7% increase in the 905, or nearly double the 416 number.
When we look at number of sales, we see that the sales dropped -6.9% in the 416, but only -0.6% in the 905 and -2.1% overall. That is based upon a comparison of the first two weeks in September 2015 compared to the same two week period in 2014.
This would be somewhat indicative of a trend to acquire detached houses in the 905 area. We will watch to see if that trend continues throughout the Fall.
Brian Madigan LL.B., Broker
Comments(3)