Despite repeated warnings that a bubble is forming, Toronto’s housing market posted double-digit sales growth and record-breaking prices for the month of September.
The total number of homes sold in the Greater Toronto Area (GTA) surged 42.3% year-over-year to a new record for September as 11,083 properties traded hands, according to data released by the Toronto Regional Real Estate Board (TRREB).
Detached homes accounted for more than half of the activity as 5,559 sales were recorded in the month, representing a 55% increase from 2019. Meanwhile, condo activity lagged as sales rose 14.6% year-over-year.
The average selling price for all homes in Greater Toronto increased 14% year-over-year to $960,772 -- marking a fourth consecutive month of record average prices after the previous all-time high of $951,404 registered in August.
The growth in Toronto’s housing market comes despite numerous agencies such as Canada Mortgage and Housing Corp. (CMHC) warning that a bubble is forming in the city’s housing market. Last week, Swiss bank UBS said that Toronto’s housing market is one of the biggest bubbles in the world.
Meanwhile, the real estate market in Vancouver had its best September on record in terms of the number of homes sold. The Real Estate Board of Greater Vancouver said that 3,643 homes were sold last month, up 56.2% from the 2,333 sold in September 2019.
Sales were also up 19.6% from the 3,047 homes sold in August. The average home price in Vancouver reached $1.04 million in September, up 5.8% from September 2019. While a wave of homes hit the market last month, it was not enough to keep up with demand and low supply, which pushed prices higher.
There were 6,402 properties newly listed for sale in September, up 10.1% from August.
Agents sold 730 attached homes (such as townhomes and rowhouses) and 1,317 detached homes in September, as sales in both categories rose more than 70% from the same time a year ago.
The benchmark price for Vancouver apartments in September was $683,500, up 4.5% year-over-year, while the benchmark price for attached homes was $809,900, up 5.2% from September 2019.
