_{GTA Real Estate Prices Rise 5.8% in September}

The Greater Toronto Area (GTA) real estate market is showing resilience. 

Prices continue to rise steadily this year and increased 5.8% since September of 2018. 

The upward pressure on price is a direct reflection of the very tight supply of homes available for sale.  During September, only 2.2 months of inventory were available for sale.  Industry insiders view anything under 4 months as tight supply and a sellers’ market, 4 to 6 months as balanced market and above 6 as a buyers’ market. 

The key factors leading to the increasing prices continues to be the combination of strong employment rate, historically low interest rates, and strong population growth*.

The increase in prices was driven by the condo, semi-detached and townhouse segments.  The price changes varied between the 416 and 905.  Appreciation of the condo and detached markets were dramatically higher in the 905 compared to the 416, as the detached segment is showing moderate increases in the 416. 

 
Sales activity for September 2019 was up sharply (22%) from the previous September.

Brampton
Brampton continues to be among the strongest markets in the GTA as prices rose to $738,485 (up 6.8%) over September of 2018.  This was driven by increases across most housing types.    

There is very little supply of homes as only 1.5 months of inventory was on hand at the end of September compared to 2.7 months of inventory on hand at the same time last year.  This tight supply will continue to create upward pressure on average prices moving forward.

Days on market have improved to 20 from 23 at the same time a year ago.

The number of homes trading hands rose dramatically (25.9%) to 778.

Mississauga
Mississauga market continues to improve.  Average prices increased a solid 3.9% to $763,451 while and number of homes sold increased by a dramatic 26.3% each compared to September of 2018.

This improvement was a direct result of a very tight supply of homes available for sale of only 1.7 months.  This level of supply will continue to put upward pressure on price moving forward.

Days on market for the month of 19 was also a dramatic improvement over the end of 2018 as days on market reached 29. 




 

  

     
Caledon
Average price of $1,035,789 increased 11.7% from the same time last year.   

The increase in prices is a reflection of the tightening of inventory to 3.8 months from 4 months at the same time last year.   

Days on market of 25 is a dramatic improvement from the 44 days on market experienced at the beginning of the year.  

Milton
Milton market continues to strengthen as there was a 23% increase homes traded in September.  Prices for the month were up slightly to 741,829 representing a 2.8% increase over September of 2018. 

Supply is among the shortest in the GTA of 1.3 months of inventory on hand, and thus should continue to create upward pressure on average prices moving forward.

Days on market improved to 18 from 36 experienced in January of 2018.

 

Oakville
Average price of $1,135,335 is up 6.7% from September of 2018.      

Year over year sales is down slightly to 224 in the month (down 4.3%).

Supply tightened to 3.7 months of inventory on hand and thus is still in seller territory and accordingly prices should continue to rise in low to mid digit territory moving forward.

Days on market remains steady at 32.

Burlington
Number of homes traded grew modestly to 206 (up 0.5%) for the month over the same month last year.

Prices were rose dramatically to $820,569 (up 9.6%).    

Supply tightened to 2.1 months of inventory on hand.   This tight supply should continue to put upward pressure on prices moving forward.

Days on market have improved to 24.

Georgetown
Average price of $841,406 is up a dramatic 19.5% from 2018 and represents the highest average price increase in the GTA.   

Supply was 2.9 months of inventory on hand and thus is in tight market territory which should result in mid-single digit price increases moving forward.   

Days on market of 22 is an improvement from the 37 days on market experienced at the beginning of the year.  

Conclusion
Upward pressure on home prices in the GTA will continue as available housing in most parts of the GTA remains in a short supply. 

_{*Some Key Economic indicators for a healthy real estate forecast:}

Peel Region expected to grow by 500,000 people in next 2 decades 

BOC holds rate September 4 2019

Key economic indicators – Statistics Canada 

Consumer confidence index