Homes

Housing prices rise in Toronto, but fall in Vancouver as the two markets go opposite ways

By: Lisa Coxon on October 3, 2019

Both Toronto and Vancouver saw home sales shoot up in September, though prices for homes rose in Toronto while Vancouver prices continue their second year of declines.

Residential home sales in Vancouver shot up 46.3% in September, according to the Real Estate Board of Greater Vancouver (REBGV), which says the city is starting to see a more balanced housing market. That number, which is compared with the same month last year, is just 1.7% below the 10-year average for September.

The Toronto housing market is also enjoying a spike in home sales, with a 22% jump in September, according to the Toronto Real Estate Board. Home sales in the region increased from 6,414 in September 2018 to 7,825 in September of this year.

“We’re seeing more balanced housing market conditions over the last three months compared to what we saw at this time last year,” REBGV president, Ashley Smith, said in a news release. “Home buyers are more willing to make offers today, particularly in the townhome and apartment markets.”

Out of 4,866 Vancouver homes listed in September, the board says that 2,333 homes were sold, compared with 1,595 homes this time last year. 

Overall, the number of homes listed decreased by nearly 8% compared with September of last year, but increased by nearly 30% when compared to August. 

Detached homes were on the market for an average of 58 days last month, townhouses for 45 days, and apartments for 43 days.

Home prices in Vancouver are not, however, on an upward trajectory.

The benchmark price for all home types in Greater Vancouver is currently $990,600 — a 7.3% decrease from September of last year, and a 0.3% decrease from August of this year.

It’s the opposite story in Toronto, where home sales and prices have remained strong in the past year and continue to recover from the 2017 correction. Prices in the Greater Toronto Area (including condos and all other housing types) also jumped by 5.8% in September, to $843,115. This is the highest mark home prices have hit so far this year.

While prices are rising in Toronto, Vancouver property continues to remain more expensive on average.

The benchmark price for a detached home in Greater Vancouver is $1.4 million, which was down 8.6% from September of last year, and unchanged from August of this year. That’s compared to $1.05 million on average for the GTA.

The benchmark price for a townhouse in Greater Vancouver is $767,500, a 7.2% decrease from September of last year, and a 0.6% decrease from August of this year. That’s compared to $677,387 on average for the GTA.

And the benchmark price for an apartment in Greater Vancouver is $651,500, a 6.5% decrease from September 2018, and a 0.4% decrease from August 2019. That’s compared to $595,013 on average for a condo apartment in the GTA.

“This is a more comfortable market for people on both sides of a real estate transaction,” said Smith of the Vancouver housing market. “Home sale and listing activity were both at typical levels for our region in September.”

 

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