Average price for a home in the GTA increases by 9.2%

The Toronto Real Estate Board (TREB) released its September 2015 housing market figures for the Greater Toronto Area (GTA), announcing a record number of sales for the month.

There were 8,200 transactions reported through the MLS® System in September 2015, which is 2.5% higher than the same month last year. In the first nine months of the year, there were 80,331 sales across the GTA, and that’s 9.5% higher than the first three quarters of 2014.

“We are on track for record home sales reported through TREB’s MLS® System this year,” says TREB President Mark McLean. “Barring a drastic shift in the economy over the next three months, total transactions reported by TREB Members in 2015 are expected to be at or near the 100,000 mark. This is a testament to the importance that GTA households put on home ownership as a long-term investment.”

Along with sales, the average selling prices are soaring across the region. Overall, the average selling price went up 9.2% to $627,395. The increase is largely influenced by the low-rise market. Detached homes saw the greatest increase in average selling price, jumping 11.2% to $819,853. The average price of a detached home in the 416 area remains over $1 million at $1,053,871.

“While September was the second straight month where annual growth in new listings outstripped annual growth sales, total active listings at the end of the month still remained below last year’s level,” says Jason Mercer, TREB’s Director of Market Analysis. “This, coupled with the record pace of sales experienced so far this year, suggests that competition between buyers will remain strong as we move into the fourth quarter. Expect strong rates of price growth to continue through the remainder of 2015 and into 2016.”

As we begin the fourth quarter, we look forward to watching how the resale market and new housing market push through the winter season.