The average Toronto area re-sale home price rose by about $43,000 or 6 per cent in September compared with August — a sign, say some realtors, that the slumped market is waking up, or at least levelling off.
“The increase in price is seasonal, but it’s still a positive sign because it tells you the market isn’t falling further,” said Realosophy president John Pasalis.
The average September home price of $775,546 was 2.6 per cent higher — about $20,000 more — than the same month last year. The number of re-sale home transactions was down, however, 35 per cent year over year, according to the Toronto Real Estate Board (TREB).
That’s due in large part to a 40 per cent drop in the number of detached houses sold across the region, compared to a 27.5 per cent decline in the number of re-sale condo transactions.
Condo prices, nevertheless, remained a bright spot last month, averaging 20 per cent higher year over year, thanks to tight market conditions where lower entry-level prices for apartments continue to attract first-time buyers, according to TREB.
The number of new listings was down in Toronto but up across the region, leaving some areas, such as Richmond Hill, Aurora and East Gwillimbury, with an oversupply, said Pasalis.
“That’s one market that might see further downward pressure on prices, maybe less so on semis and towns, and things that are more affordable,” he said.
It has left sellers in those areas struggling to digest the change that has occurred in the Toronto region market since April, when the average home price peaked at $920,791, said Aurora-based Royal LePage broker Caroline Baile.