GTA Real Estate: September 2017 Outlook

Good news for the real estate market: latest data from HouseSigma indicates that the interests hike did not cool the market as many expected.

Summary

To understand the true impact of the interest rate hike, we compiled the latest sold records from the Greater Toronto Area and extracted insights from different aspects of real estate.

Numbers never lie, and you can’t tell the full story from only one set of numbers. It’s very important for us to look at multiple metrics before driving conclusions.

  • Period A (before increase): August 18 to September 5 (19 days)
  • Period B (after increase): September 6 to September 24 (18 days)

Results

Metric #1: Median Price of GTA Condos and Homes

  • Condo prices increased by $12,000
  • Detached home prices increase by $12,000

 

Metric #2: Sold Volume of GTA Condos and Homes

  • Number of sold condos decreased by 134
  • Number of sold detached homes increased by 117

 

Metric #3: Ask/Sold Price Ratio of GTA Condos and Homes

  • No change in both condo and detached home sales

Metric #4: Days on Market of GTA Condos and Homes

  • Condos days on market remained the same between both periods
  • Detached homes days on market decreased by 4 days

 

Conclusion

It appears the Bank of Canada’s interest hike did not affect the real estate market in the Greater Toronto Area as much as many speculated. Driving the market was an increase in median pricing for condos and detached homes, plus an increase sales volume and lower DOM for detached homes. Condos appeared less sought after in volume, while many factors such as condo DOM and the Ask/Sold ratio remain unchanged before and after the interest hike.

Contact me at j.zeng@housesigma.com