Toronto Market Continues Strong in October

Prices for detached homes in the City of Toronto hit an all-time high of $1,784,979 in October. This was slightly higher than September and 21% above last October. The strong market is being driven by ultra-low mortgage rates in combination with a declining inventory of homes for sale. Inventory dropped to 0.86 months’ supply in October, signalling an extreme sellers’ market. This is very close to the level we saw in the height of the crazy ‘spring fever’ earlier this year. With inventory so low, and with many buyers anticipating even higher prices next year, it’s likely that the market will remain strong through the holiday season.

The condo market in the City of  Toronto also remained strong in October. Prices declined slightly from September’s all-time high but remained above the spring peak that we saw in March. As for detached homes, the inventory of condos for sale remained very low at 1.5 months’ supply. This was slightly lower than in September and about the same as it has been for the last 6 months. The sellers’ market continues for condos and is also likely to continue strong through the Christmas/New Years period.

To add some perspective, consider what has happened over the past two years since Covid began. Average prices for all property types have increased by 20% in the City of Toronto since 2019. This seems hardly believable during a serious pandemic, however, the numbers outside the City of Toronto are staggering. Prices in the GTA areas surrounding Toronto increased by 40% over the past two years. We are all familiar with the ‘exodus narrative’,  work-from-home city dwellers leaving Toronto in droves for bigger and less expensive homes. Even so, the magnitude of the change is absolutely amazing.

As we put the worst of the pandemic behind us, we can probably expect to see immigration accelerate and some degree of return to the city as companies call their employees back to the office. These factors will almost certainly add fuel to the fire that is the Toronto real estate market.