September marked a change in the Toronto residential marketplace. For the first time since April, the average sale price for all properties sold in the greater Toronto area actually rose.
The monthly average sale price had been on a downward spiral ever since the provincial government announced the introduction of a 15% foreign buyers tax on April 20th.
In September the average sale price came in at $775,546. September’s average sale price was 6% higher than August’s average sale price, and almost 3% higher than the average sale price achieved in September 2016. This is a welcome change, and the first step to the resale market’s return to normalcy. Not the frenzied market that we experienced from January through April, but the 2016 market, that saw property values rise in a moderate, sustainable way.
Although the market did recover in September, the recovery remains fractured, with some sub-markets outperforming others. On the broadest level, the 416 area code, as a trading district, is outperforming the 905. Sales volumes for the greater Toronto area were down 35% compared to last year. This September 6,379 properties were reported sold, last year there were 9,830. Comparing the 416 and 905 trading areas, a different picture emerges.
Whereas the overall market was off by more than 35% compared to last year, the 416 trading area had only declined by 29 percent. The 905 trading area did not fair as well, with sales off by almost 40 percent. The same is true for average sale prices.
As indicated above, the monthly average sale price for the greater Toronto area was $775,546, up 2.6% compared to last year. On an unweighted basis, the average sale price for all properties sold in the 416 region increased by almost 10% compared to last year. In the 905 the increase was slightly less than 6%. So clearly the numbers emerging from the 905 region are acting as a downward drag on the results of the overall resale marketplace.