Toronto’s red-hot real estate market showed no sign of cooling off in October, according to the latest numbers from the Canadian Real Estate Association.
The average price of a home or condo is the GTA is $683,000, a two per cent increase over the previous month. The cost of residential real estate is nearly 20 per cent higher than it was in October of last year, and a staggering 57 per cent higher than it was five years ago.
Nationally, it was also an active month for home sales, which were up by 2.4 per cent from September to October. Average prices are up 5.9 per cent over last year, and the number of new listings across the country was up by 1.7 per cent.
Last month, the federal government announced new “stress test” rules to ensure first-time homebuyers could afford their homes should interest rates rise. CREA says it’s too early to tell what effect this will have on the Canadian housing market.
“More time will need to pass before its effect on housing markets can be gauged,” said CREA President Cliff Iverson. “The extent to which they will push first-time home buyers to the sidelines may vary among housing markets.”
On Monday, Ontario’s Liberals announced an increased rebate on land transfer taxes for new homebuyers to a maximum of $4,000. The land transfer tax on homes selling for more than $2 million will increase by half a percentage point.