The Toronto area market surged upward again in October with both prices and sales significantly higher than in October 2013. The inventory of homes for sale was again lower than last year, continuing the higher sales/lower inventory trend that we have seen every month this year as compared with 2013. The blazing hot sellers’ market continues unabated.
Across the GTA, there are some regional variations, but the strength in the market is very broad: prices to the north and east of the city are up almost 10%, while prices to the west are 6-7% higher and the City of Toronto itself is up 8.5%.
The Toronto market is also very strong across all property types, with freehold properties (detached, semi-detached and townhouses) up over 9% year-to-date, while condo townhouses are up 8% and condo apartments are up over 5%. So much for the impending collapse of the condo market.
Assuming the market follows the typical seasonal trend, we will see average prices decline during November and December, level off in January, and surge upward again in February through May. The inventory of homes for sale will likely drift upward over the next 2-3 months before declining sharply beginning in February. The fact that the fall market has been so strong – October prices are actually higher than the peak price this spring – betokens another very vigorous spring market next year.