The GTA housing marketing once again experienced a strong month in October and continues to makes strides toward recovery. In what many predicted to be a bleak summer and down year for real estate in the Toronto area, has in fact turned out to be very different than what most predicted. Only a few short months ago, many naysayers predicted a real estate market crash, but it never came. Since then, the down GTA housing market has continued to beat the odds and is well on its way to recovery heading into 2014.
Sales Up More Than 19 Per Cent in October
Just like in previous months, the GTA housing market has remained strong. Home sales were up almost 20% when compared to the same time last year according to the Toronto Real Estate Board (TREB). Home prices were also up by more than 7%, making October a strong month overall. The average sale price of a home hit $539,058 last month, which is also up from October 2012.
These numbers and the continued trend of the housing market beating predictions should be a vote of confidence for homeowners, who only a few months ago were increasingly becoming concerned about property values and their investment in Toronto real estate. The good news is that the future is promising and homeowners in the GTA can have confidence in the market once again.
The Numbers Tell the Story
They say the numbers don’t lie. Here are some of the stats that sum up real estate performance in the GTA for October:
Approximately 8,000 homes were sold, which is an increase of more than 1,200 sales when compared to the previous year.
The average sale price of homes in the 416 area was more than $590,000 in, up from $538,120 a year ago. The average sale price was also up in the 905 area as well.
- Detached homes remain the most in demand type of property in Toronto, with sales up more than 20% in the 416 region.
The only area that saw a dip was the sales of semi-detached homes, but it was a meager 2% dip, which is nothing to be concerned about.
Even the Condo Market is Performing Well
A major sign that the market continues to recover is that the condo market remained healthy. Believe it or not, sales numbers were up over 20 per cent in Toronto and a staggering 35 per cent in the 905 regions. Sales prices for condos were also up in Toronto by more than 7 per cent in October with the average price being $384,441.
This is good news for a market that was thought to be in significant trouble in 2011. With developers smartly holding off on new developments and focusing on selling units in existing buildings, the market should level off. Even with the reduction in new projects, sales in downtown Toronto were up more than 20 per cent when compared to the same time last year.
The 2014 Market
Prices and sales are up and consumer confidence in the real estate market is returning. With home sales continuing to be strong over the past few months and with the condo market coming around, the Toronto housing market is well on its way to not only recovering, but also having a strong 2014.
The continued strong results are expected to continue into next year. Many real estate analysts are now predicting that growth in the market will continue into 2014.
There are two main reasons why the market’s comeback is expected to remain strong. First, interest rates remain low, something that will attract buyers to the marketplace. And second, the low inventory of homes on the market is unusually low as many people decided to hold off until the market began to recover. With the return of confidence in the Toronto real estate market, expect to see more homes put up for sale in 2014.
The rebound in sales since the summer, market conditions, and renewed confidence should mark a good 2014 for real estate in the GTA.