06 Oct Notes: Is the Toronto real estate market rebounding?
This week, September’s sales figures came out relatively inline with my expectations. Toronto outperformed the broader GTA as buyers came back to the market and prices bounced up. Sales are down drastically when compared to last year, but overall this is good news for a more balanced market moving forward. Sales of detached homes have continued to stall in the 905, as buyers are looking at more affordable options, such as semi-detached, town homes and condos.
You may remember that detached homes were once the fastest appreciating and most desired property type. Now, as their affordability has eroded, so has demand. That being said, most of the detached inventory resides outside of Toronto, in for example; Richmond Hill. Detached homes in the 416 performed relatively inline with semi-detached and townhome property types in September, so they aren’t necessarily ‘on-sale’ in Toronto right now.
Affordability is the name of the game and the condo market is reaping the benefits. Prices are up 24% overall from last September, which is a huge number considering the broader market trend. I speculate that there is also a shift in lifestyle choice happening, where people from all age groups are trending towards living a more minimalist lifestyle.