Latest in Mortgage News: Toronto and Vancouver Home Sales Surge in September

The fall was supposed to herald in a period of more subdued housing activity and home price growth. But preliminary September data for the Greater Toronto and Vancouver areas tells a very different story.

In the GTA, home sales reached a new record of 11,083, representing a 42.3% gain compared to September 2019. Similarly, the MLS Home Price Index Composite Benchmark for all home types rose 14% year-over-year to $960,772, according to data from the Toronto Regional Real Estate Board (TRREB).

“Improving economic conditions and extremely low borrowing costs sustained record-level sales in September, as we continued to account for the substantial amount of pent-up demand that resulted from the spring downturn,” TRREB President Lisa Patel said in a release.

Year-over-year sales growth continued to be driven by “ground-oriented market segments, including detached and semi-detached houses and townhouses,” TRREB noted. Condos, on the other hand, experienced a slower overall pace of growth, with sales up 14.6% year-over-year and prices up 6.6%. On a month-over-month basis, condo prices cooled slightly.

Similarly, Vancouver had its best year on record in terms of the number of homes sold. The Real Estate Board of Greater Vancouver (REBGV) reported that 3,643 homes were sold in September, representing a 19.6% increase compared to August and a 56.2% jump from September 2019.

Home prices continued to post gains as well, with the MLS home price index composite benchmark price rising 5.8% year-over-year to $1,041,300.

“Demand-supply conditions have tightened considerably for single-detached homes as new listings rose ‘only’ 18% y/y,” wrote RBC’s Robert Hogue in a research note. “We expect prices to heat up even more in this market segment in the near term (and) we expect more plentiful inventories will do the opposite for condo prices.”

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Original Article Source Credits:   CANADIAN MORTGAGE TRENDS , https://www.canadianmortgagetrends.com/

Article Written By:  Steve Huebl

Original Article Posted on:  October 7, 2020

Link to Original Article:  https://www.canadianmortgagetrends.com/2020/10/latest-in-mortgage-news-september-another-blockbuster-month-for-gta-gva-real-estate/