New record! Toronto sales surged up to 92 per cent!

Sales of homes in the Greater Toronto Area hit a record 9,768 in October, up 11.5 per cent compared to a year earlier.

Toronto Real Estate Board reported that the condo market was particularly strong, rising 22.2 per cent, but detached single-family homes also increased, rising 10.3 per cent.

With the new federal mortgage rules implemented in mid-October, it will be at least another month before the impact of the changes will show in sales figures.

“As we move through November and December, we will be watching the sales and listings trends closely, in light of the recent policy changes announced by the Federal Minister of Finance,” commented TREB president Larry Cerqua.

Prices also surged with the MLS HPI showing a rise of 19.7 per cent year-over-year and the average selling price up 21.1 per cent to $762,975.

The data shows that GTA suburbs were showing higher sales growth than the City’s 416 area; condos up 28.3 per cent (compared to 19.8 per cent in the 416); and detached homes up 13.4 per cent (compared to 1.5 per cent in the 416).

What about high-end homes? Are they in demand?

Third-quarter sales of high-end homes priced over $2 million in the GTA “surged” 92 per cent over the same period last year. Between July 1 and September 30, which “dovetails” with the time the foreign buyers tax took effect in Vancouver, 759 of these high-priced homes changed hands in Toronto, compared to 394 sales last year. Year-to-date sales of homes above $2 million are up 80 per cent over last year, with close to 2,400 sales so far!

It seems that the foreign buyers were “transitioning” into the GTA within weeks of the tax introduction.

This segment represents just 2.6 per cent of the total market, and illustrates the “red-hot demand” for properties at the top end. Sales of homes priced above $5 million are also up an impressive 41 per cent!

But low inventory of homes for sale, that perennial problem in Toronto’s mainstream housing market, is also a problem at the high end. Fewer than 200 properties are currently listed in the $2–$3 million range, prompting “fierce” competition for them. Even at these lofty prices, multiple offers are said to be commonplace and prices continue to escalate.
  

Are you looking to buy a property? If you like, I can tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much I could save you right now if you have an existing mortgage.

Until next time,
Your mortgage expert Evgeny Kamenskiy