While the strong Toronto real estate market continues to make headlines, the 905 area surrounding the city is hotter than ever. It is even outperforming the 416.
The latest figures from the Toronto Regional Real Estate Board (TRREB) show that the 905 surpassed the 416 region in sales, new listings and affordability this September.
The Greater Toronto Area (GTA) recorded a total number of 11,083 real estate transactions last month, marking a 42.3% increase compared to a year ago. The 905 accounted for a whopping 7,528 of them (3,973 more than in the 416), with growth in sales spreading across all housing types in the area.
In a press release about recent GTA REALTORS® stats, TRREB President Lisa Patel shared:
“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. Further improvements in the economy, including job growth, would support strong home sales moving forward. However, it will be important to monitor the trajectory of COVID-19 cases, the related government policy response, and the impact on jobs and consumer confidence.”
Toronto detached homes were in high demand in the 905 region last month, as a total of 4,398 houses were sold, representing an impressive 63.6% year-over-year surge. Buyers also sought out townhomes, which saw a 55.7% boost relative to September 2019, with 1,495 properties changing ownership.
When it comes to Toronto condos in the 905, 818 units were sold, up 32.1% from the previous year, while semi-detached homes made up 719 transactions this September, marking a higher increase of 55.6%.
The 905 vs the 416
Data on where homes are being sold certainly shines a light on the continuing rise of the 905 compared to other areas, such as the 416. However, given the size difference of these two regions, the growth in the 905 does make sense.
According to the latest Statistics Canada census information, the 905 had 28% more properties than the 416 (966,835 residential properties compared to 753,750) at the time of the data retrieval. The number of new listings was also higher in the 905 area this September, at 11,731 – 3,042 more than in the 416. Overall, while the GTA has been experiencing lower housing inventory for some time now, the 905 area continued to see significant boosts in new listings month-over-month.
In addition to multiple options available, the 905 region offers more affordability than the 416, boasting lower average prices for all home segments this September.
Detached homes in the 905 were priced at an average of $1,104,866, up 16.9% year-over-year. Semi-detached homes increased 14.7% to $791,526, and the average price for a townhouse in the region was $716,286 (up 12%). What’s more, apartment-style condos sold for about $537,354 last month, marking an 8% rise compared to September 2019.
In general, all housing types in the 905 area had an average price of $931,834 — $90,217 less than the one in the 416.
Durham Region Overview
Vicki Sweeney, president of the Durham Region Association of REALTORS (DRAR), noted that 1,492 residential transactions took place in the area last month, a 56% increase from the same time a year ago.
There were also 1,873 new listings this September, marking a slight uptick from August’s 1,839 figure. Furthermore, the average number of days on the market continued to be historically low here, at an average of 12 days.
The Durham Region’s average home price was $734,038 last month, a 20% boost from the same time the previous year. Sweeney stated:
“Extremely low borrowing costs and pent-up demand from the early spring shutdown has resulted in substantial year-over-year increases in Durham’s housing market. Further improvements in the economy will continue to support strong home sales moving forward. It is important to note, the demand for housing remains strong and increased housing supply is imperative.”
The GTA continues to display intense real estate activity amid the COVID-19 pandemic. At the same time, the latest data from TRREB highlights the significant role that the 905 area has been playing in keeping the market moving forward.
Source: Toronto Storeys