October 2017 - October Bustle - The New Street Resale Real Estate Report for The Greater Toronto and Hamilton Region
The recent mortgage regulation changes announced by the Federal Government has had an impact on sales activity in October with the number of homes sold rising 12% based on TREB's (Toronto) MLS System® and 33% based on RAHB's (Hamilton-Burlington) MLS System®. There wasn't much movement in the average home price throughout the GTA & Hamilton in October from September. Prices in both regions were up by 2.3% and 7.8% respectively, from the previous year.
GTA & Hamilton Home Prices - Last 12 Months
Following the recent "mortgage stress test" announcement, it seems home sales have picked up significantly. The Region of Hamilton & Burlington MLS® System saw a 33.1% jump in the number of sales in October, from the previous month. Toronto Real Estate Board® measured a similar trend with the volume of sales up 11.6% from September. Two other important positive factors are evident in the stats below. Both average days on market and new listings were down from the previous month on both MLS systems. This means that homes are selling faster on average with less homes being listed for sale in October.
GTA & Hamilton Homes Sales Stats – October 2017
Looking at the stats below from TREB's MLS System® , I guess you can say the last 12 months have seen "The Rise of the Condo" and "The Death of the Detached Home". Perhaps that's an exaggerated (and catchy) news headline but there is some truth to it. The average price of a condo continued to grow in October, up 21.8% from last year meanwhile detached home prices were down (yes down) by 2.5% from October of 2016. Keep in mind that the detached home market was peaking this time last year so this drop is simply a balance in the market. With the average price of a detached home in the GTA still above $1Million, the segment is far from dead.
GTA Sales & Average Price by Home Type - October 2017
The increase in the sales volume was mainly driven by the condominium segment in the Hamilton-Burlington area which saw a 91% jump in sales activity from September. Both freehold and condos prices were up from last year, with the freehold market leading the way with a 11.4% average price increase.
Hamilton & Burlington Sales & Average Price by Home Type - October 2017
Based on the Region of Hamilton-Burlington MLS System, sales activity picked up significantly in communities such as Waterdown, Dundas, Hamilton Centre and Stoney Creek in October. Averge prices saw a double-digit jump in Burlington, Flamborough, Hamilton Centre, Waterdown and Glanbrook from October 2016. See map below for more details.
Hamilton & Burlington Prices & Sales by Community - October 2017
In the GTA, the market remained healthy in October with prices up from last years (already-hot) fall market, in all cities except for Richmond Hill. Halton Hills, Milton, Brampton and Toronto West have seen the biggest gains in their average price in October 2017.
GTA Prices & Sales by Community - October 2017
With the mortgage stress-test coming in January, it's hard to tell what the market has in store for 2018. For now, it seems things are active and healthy as we head into the winter months. Opinions are my own and should not be taken as advice. Data Compiled by New Street from TREB (Toronto Real Estate Board) and RAHB (Realtors Association of Hamilton-Burlington). In association with Right at Home Realty Inc., Brokerage, 5111 New Street, Burlington, ON L7L 1V2. The information here is deemed reliable but not guaranteed by New Street, TREB or RAHB. Not intended to solicit listed properties or buyers under agency agreements.
