Toronto’s housing market may soon cool down slightly

According to the recent survey by Royal LePage, the aggregate real estate price in the GTA was up by 11% annually and reached $922,421 in the third quarter of this year.

The median price of an average two-story house showed a 12.2% annual increase to $1,082,502.

In case of a bungalow, the average cost was up by 10.6% on a year-over-year basis to $887,156.

Meanwhile, GTA condos saw prices growing by 6.8% from a year ago to $599,826.

Toronto showed strong home price increases by 11.1% annually to $975,980.

The report says the median cost of a standard two-story house was up by 15.5% year-over-year and reached $1,483,510. Bungalow prices showed an 11.3% annual gain to $974,295.

At the same time, the average condo price was up by 4.9% from a year ago to $644,903.

“A strong demand from the postponed spring market has continued through the third quarter,” – noted Debra Harris, vice president for Royal LePage Real Estate Services Limited. “We are expecting a seasonal slowdown during the coming months. However, with such a strong September, we’ll probably see a more active fourth quarter than in 2019.”

In terms of sales, the sector of detached houses outpaced condos.

“Nevertheless, the demand for condos remains healthy,” – said Harris. “Condo sales rose by 15% in September from a year earlier. We are used to a seller market in Toronto, so a balanced market can seem quiet.”

According to Royal LePage, today’s regional price levels will remain unchanged for the rest of 2020.

“Real estate prices increase seen during this quarter is expected to remain through December,” – noted Soper.

“Although the pace of price growth may slow down significantly over the final weeks of this year, we’ll hardly see home prices going down”, – he said.