Real Estate Market Strong in September | Market Watch
Real Estate Market Strong in September – The market continued to flex its muscles as GTA realtors reported 7,825 sales during September. This resulted in a 22% increase over September 2018 and a 22.6% over 2017. Month over the month the increase was more modest at 1.7%.
The average sale price for all home types in the GTA was $843,115, the highest average sale price since May 2017. The September average sale price is 5.8% higher than the same period last year, while month over the month, it is 6.4% higher. In Markham, the average sale price for a detached home rose by 5% to $1,285,156. In Stouffville, the average sale price for a detached home decreased by 3% to $1,024,740.
Detached home sales continue to collect the majority of the transactions in the 905-area code. A total of 2,707 detached homes were sold in September with an average sale price of $946,256. Overall there was a 26.1% increase in sales and a 4.5% increase to the average sale price year-over-year. 57% of all homes sold in the 905-area code during September were detached.
In the 416-area code, the condominium apartment segment leads the way in terms of transactions with 1,450 in September, a 13.5% increase over last year. The increased level in sales resulted in a 3.3% increase in the overall sale price.
Market conditions tightened once again during September, with new listings and active listings both being lower than the previous year by 1.9% and 14.1% respectively. There have now been multiple months where sales growth has outpaced new listings growth and we have witnessed an increase in the average sale price.
The luxury market over $3 million operates at a level far different from the rest of the market. Since the beginning of the year, 12 luxury homes have sold in Markham with the average sale price being $3,453,861, while 69 properties remain on the market. In Stouffville, there has still been no sale over $3 million, while 23 properties remain on the market.
What Does This All Mean?
The real estate market continues to rebound from the previous year. Although sales have increased, the number of active listings has decreased placing further pressure on the average sale price. Should the market continue at this pace we will see the average sale price increase for future months.
This year’s federal election is in full force and each party has provided their stance on housing. Depending on the outcome of this year’s election we will see if they can fulfill their promises on affordable housing, the mortgage stress test and other hot-topic issues.
* Real Estate Market Strong in September written by Benczik Team Realty